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Company news and monetary news, analysis, viewpoint and stats covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area forecasted to outperform its 2025 performance in spite of soft oil earnings and continuous international uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 percent in 2025, showing a durable nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.
The newest projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic need and a broadly stable global background. The report highlights GCC consumers as a significant motorist of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to fuel a rise in consumer costs throughout the Gulf.
Corporate Planning for Middle East LeadershipCredit growth is also forecast to stay elevated as access to monetary services expands. With GCC main banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, providing households and businesses even more motivation to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a mixed image.
How to Secure a Leading Edge in 2026This might weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and worldwide need improves. Qatar, meanwhile, stands apart as a local outperformer, with considerable expansions in gas production and exports anticipated to raise its total financial efficiency.
Saudi Arabia's 2026 budget prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by two portion points. Nevertheless, the report notes that these cuts may not materialise totally if countercyclical spending measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development agendas.
Despite shortterm threats tied to oil rates and worldwide demand, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, improving oil dynamics, and tactical financial preparation. With these factors aligning, the region is preparing for one of its most balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are expected to stay resilient in 2026, driven by strong domestic need and a broadly consistent worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.
We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth in the area is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

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 ongoing progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to surpass their worldwide peers. Oxford Economics stated that low inflation has assisted secure growth in real non reusable income, which has likewise been supported by strong demand and extremely low unemployment rates."We do not picture any let-up, as governments continue to promote greater foreign direct investment in their push to diversify their economies far from oil and gas," the report included.
In December, the IMF further stated that heading inflation is expected to stay listed 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 anticipated to remain raised in the GCC area during 2026, as access to financial services is expected to grow and financing is forecasted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by easing monetary policy even more, which in turn will reduce financial obligation maintenance costs and increase disposable income and demand," stated the report.
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