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

Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outperform its 2025 performance regardless of muted oil incomes and ongoing global unpredictabilities. According to a new Oxford Economics research study instruction, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong customer dynamics, and slowly improving oil output.
The latest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly steady global backdrop. The report highlights GCC customers as a major chauffeur of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are anticipated to fuel a surge in consumer spending throughout the Gulf.
Credit development is likewise forecast to remain elevated as access to financial services expands. With GCC central banks expected to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decline, providing families and services further motivation to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended image.
Boosting Dubai Manufacturing Growth InitiativesThis might weigh on firsthalf growth, especially for economies more based on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand improves. Qatar, on the other hand, stands out as a regional outperformer, with significant expansions in gas production and exports anticipated to raise its general economic efficiency.
Saudi Arabia's 2026 budget plan anticipates a 6 percent cut in capital investment as the kingdom intends to narrow its financial deficit by two percentage points. The report notes that these cuts might not materialise totally if countercyclical spending procedures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.
Regardless of shortterm dangers tied to oil costs and international demand, the GCC's 2026 financial outlook is defined by strength in principles: durable consumers, robust nonenergy sectors, improving oil characteristics, and tactical financial planning. With these factors lining up, the area is preparing for among its most well balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council regional economies are expected to remain resilient in 2026, driven by strong domestic need and a broadly constant global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.
We anticipate GCC growth will increase 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 speed up to 4.3 percent by 2027, driven by broadening 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 region's ongoing development towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to surpass their international peers.
In December, the IMF even more stated that headline inflation is expected to stay listed 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 expected to remain elevated in the GCC area during 2026, as access to financial services is anticipated to grow and loaning is projected to be supported by further cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by easing monetary policy even more, which in turn will reduce financial obligation servicing expenses and boost disposable earnings and demand," said the report.
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