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Company news and monetary news, analysis, opinion and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region forecasted to surpass its 2025 performance despite soft oil earnings and continuous international unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and gradually enhancing oil output.
But the latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly steady global background. The report highlights GCC customers as a significant driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are expected to sustain a rise in customer costs throughout the Gulf.
Why Is Operational Excellence Essential for Future Growth?Credit growth is also anticipated to remain raised as access to financial services widens. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decline, offering homes and organizations even more motivation to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a combined picture.
Key Developments in the 2026 GCC EconomyThis might weigh on firsthalf growth, especially for economies more reliant on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and worldwide demand improves. Qatar, on the other hand, sticks out as a local outperformer, with significant growths in gas production and exports expected to raise its general financial performance.
Saudi Arabia's 2026 budget plan prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts may not materialise fully if countercyclical costs procedures 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 risks tied to oil costs and international need, the GCC's 2026 economic outlook is defined by strength in fundamentals: durable consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal preparation. With these aspects aligning, the area is getting ready for among its most balanced durations of expansion in recent years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council regional economies are expected to remain resistant in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the predicted 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 region is set to accelerate 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 ongoing progress toward diversity. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their global peers.
In December, the IMF even more stated that heading inflation is anticipated to remain 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 stay elevated in the GCC region during 2026, as access to financial services is expected to grow and loaning is predicted to be supported by further cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by easing monetary policy further, which in turn will reduce debt servicing expenses and enhance non reusable income and demand," stated the report.
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