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Service news and financial news, analysis, viewpoint and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area predicted to exceed its 2025 performance regardless of soft oil profits and continuous international uncertainties. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.

The most current projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly constant global backdrop. The report highlights GCC customers as a major chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to sustain a rise in consumer costs throughout the Gulf.

Credit growth is also forecast to remain elevated as access to monetary services widens. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decrease, offering households and companies 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 mixed photo.

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This could weigh on firsthalf growth, particularly for economies more reliant on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and international need improves. Qatar, meanwhile, stands out as a regional outperformer, with substantial growths in gas production and exports anticipated to lift its overall financial efficiency.

Saudi Arabia's 2026 budget plan prepares for a 6 percent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by 2 portion points. Nevertheless, the report notes that these cuts may not materialise fully if countercyclical spending steps are triggered 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 defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal preparation. With these aspects aligning, the region is preparing for among its most balanced durations of growth in current years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resilient in 2026, driven by strong domestic demand and a broadly constant global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the projected 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 speed up to 4.3 percent by 2027, driven by expanding 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 region's continued development toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outshine their worldwide peers.

In December, the IMF even more stated that heading inflation is expected to remain below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth 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 more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC central banks are expected to follow the United States Federal Reserve by relieving financial policy further, which in turn will lower financial obligation maintenance expenses and increase disposable earnings and demand," stated the report.