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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
Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outshine its 2025 performance regardless of soft oil earnings and ongoing worldwide uncertainties. According to a brand-new Oxford Economics research study briefing, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly enhancing oil output.
However the current forecasts 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 driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are anticipated to sustain a rise in consumer spending across the Gulf.
Credit development is also anticipated to remain elevated as access to financial services expands. With GCC main banks anticipated to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are most likely to decrease, giving homes and companies further motivation to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a mixed photo.
This might weigh on firsthalf growth, particularly for economies more reliant on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten up and international demand enhances. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports anticipated to lift its overall economic performance.
Saudi Arabia's 2026 budget plan prepares for a 6 per cent cut in capital expenditure as the kingdom intends to narrow its financial deficit by 2 portion points. The report keeps in mind that these cuts may not materialise fully if countercyclical costs steps are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development programs.
Regardless of shortterm risks tied to oil rates and international demand, the GCC's 2026 economic outlook is defined by strength in fundamentals: durable customers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these aspects lining up, the area is getting ready for among its most well balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly stable global economy, according to an analysis. In its latest 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 forecasted 4 percent this year.
We expect GCC growth 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.
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 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 further said that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay raised in the GCC area throughout 2026, as access to monetary services is anticipated to grow and financing is forecasted to be supported by more cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC central banks are anticipated to follow the US Federal Reserve by alleviating monetary policy even more, which in turn will lower debt servicing costs and improve disposable income and demand," said the report.
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