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Business news and financial news, analysis, opinion and stats covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic growth across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area predicted to outperform its 2025 performance despite muted oil profits and ongoing global uncertainties. According to a brand-new Oxford Economics research briefing, GCC GDP development is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.
The newest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly steady worldwide background. The report highlights GCC customers as a significant driver of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a rise in customer spending throughout the Gulf.
Credit development is likewise forecast to stay raised as access to financial services broadens. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are likely to decrease, providing families and businesses further incentive to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook provides a combined picture.
How Shared Provider Support Massive GCC ExpansionThis could weigh on firsthalf development, especially for economies more depending 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 global demand improves. Qatar, meanwhile, stands out as a regional outperformer, with significant expansions in gas production and exports expected to lift its total financial performance.
Saudi Arabia's 2026 spending plan anticipates a 6 per cent cut in capital expenditure as the kingdom intends to narrow its financial deficit by two portion points. Nevertheless, the report notes that these cuts might 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 agendas.
In spite of shortterm risks tied to oil prices and worldwide need, the GCC's 2026 financial outlook is defined by strength in principles: durable customers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial planning. With these aspects aligning, the area is preparing for one of its most well balanced durations of growth recently anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council local economies are expected to remain resistant in 2026, driven by strong domestic demand and a broadly stable worldwide economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.
United States trade policy under President Donald Trump has had no notable impact on regional growth, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It included: "On the other hand, oil production has gradually increased, supplying an increase to the area's economies. We anticipate GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the area 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 continued progress toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to surpass their worldwide peers.
In December, the IMF further stated that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 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 expected to stay elevated in the GCC area throughout 2026, as access to financial services is expected to grow and lending is forecasted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the United States Federal Reserve by easing financial policy even more, which in turn will lower debt maintenance costs and enhance non reusable income and need," stated the report.
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