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Business news and monetary news, analysis, viewpoint and data covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outshine its 2025 performance despite muted oil revenues and ongoing global unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP development is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.
However the current projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly steady international backdrop. The report highlights GCC customers as a significant driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are anticipated to fuel a rise in customer costs across the Gulf.
Key Benefits of Industrial Excellence for DubaiCredit development is likewise anticipated to stay elevated as access to monetary services expands. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decrease, giving homes and services further motivation to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a blended photo.
Key Benefits of Industrial Excellence for DubaiThis might weigh on firsthalf development, particularly for economies more dependent on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and global need enhances. Qatar, meanwhile, sticks out as a regional outperformer, with considerable growths in gas production and exports expected to lift its total economic performance.
Saudi Arabia's 2026 budget plan anticipates a 6 per cent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 portion points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending steps are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development programs.
Regardless of shortterm risks tied to oil costs and global need, the GCC's 2026 financial outlook is specified by strength in basics: resilient customers, robust nonenergy sectors, improving oil dynamics, and strategic fiscal preparation. With these factors aligning, the area is getting ready for among its most balanced periods of growth in recent years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council regional economies are expected to stay resilient in 2026, driven by strong domestic need and a broadly stable global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.
We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth in the area is set to speed up to 4.3 percent by 2027, driven by expanding non-oil sectors.
Non-oil activities accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued development towards diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outperform their international peers.
In December, the IMF further said that heading inflation is expected to remain below 2 percent in Bahrain, Oman, and Qatar, close 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 elevated in the GCC region throughout 2026, as access to monetary services is anticipated to grow and financing is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC main banks are expected to follow the US Federal Reserve by reducing financial policy even more, which in turn will lower debt maintenance expenses and improve disposable earnings and need," stated the report.
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