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Service news and monetary news, analysis, opinion and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area forecasted to exceed its 2025 performance despite muted oil earnings and ongoing global uncertainties. According to a brand-new Oxford Economics research study instruction, GCC GDP growth is anticipated to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a resistant nonenergy sector, strong customer characteristics, and gradually improving oil output.

The latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly consistent global backdrop. The report highlights GCC customers as a major chauffeur of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a rise in customer spending throughout the Gulf.

Credit growth is also anticipated to remain elevated as access to monetary services expands. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are likely to decrease, giving households and companies further impetus to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook provides a mixed photo.

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This could weigh on firsthalf development, especially for economies more reliant on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and global demand improves. Qatar, meanwhile, stands apart as a regional outperformer, with significant expansions in gas production and exports expected to raise its overall economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 portion points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending measures are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.

In spite of shortterm dangers connected to oil costs and global need, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, improving oil dynamics, and strategic fiscal preparation. With these elements aligning, the area is preparing for among its most well balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to stay resistant in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its newest report, Oxford Economics highlighted that the genuine gdp of the GCC region is expected to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.

United States trade policy under President Donald Trump has had no significant influence on local development, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has slowly increased, offering a boost to the area's economies. We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development in the area is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued progress toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their international peers.

In December, the IMF even more said that heading inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC area during 2026, as access to financial services is expected to grow and loaning is predicted to be supported by more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by relieving financial policy even more, which in turn will decrease debt maintenance expenses and enhance disposable income and demand," said the report.