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

ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area forecasted to exceed its 2025 efficiency in spite of soft oil revenues and continuous global unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP development is anticipated to increase to 4.4 per cent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong consumer characteristics, and slowly improving oil output.

However the most recent forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly stable worldwide background. The report highlights GCC consumers as a major driver of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to sustain a rise in customer costs across the Gulf.

Credit growth is likewise forecast to stay raised as access to monetary services widens. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are most likely to decrease, offering households and companies even more incentive to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a blended picture.

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This could weigh on firsthalf development, especially for economies more reliant on oil extraction. However, Oxford Economics forecasts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and international demand improves. Qatar, on the other hand, stands out as a local outperformer, with considerable growths in gas production and exports anticipated to raise its overall economic performance.

Saudi Arabia's 2026 budget prepares for a 6 percent cut in capital expenditure as the kingdom intends to narrow its financial deficit by 2 portion points. However, the report notes that these cuts may not materialise totally if countercyclical costs procedures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development agendas.

Regardless of shortterm threats tied to oil costs and worldwide need, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial planning. With these elements lining up, the area is getting ready for among its most balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resistant in 2026, driven by strong domestic need and a broadly consistent international economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic item of the GCC area is expected to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has had no significant effect on regional growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has slowly increased, providing a boost to the area's economies. 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.

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 area's ongoing progress toward diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to exceed their international peers. Oxford Economics stated that low inflation has actually assisted safeguard growth in real disposable income, which has actually likewise been supported by strong need and very low unemployment rates."We do not envision any let-up, as governments continue to promote greater foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more stated that headline inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC region throughout 2026, as access to monetary services is expected to grow and lending is forecasted to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by reducing monetary policy further, which in turn will lower debt servicing expenses and boost non reusable income and demand," said the report.