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ANSR July GCC PRs 50DR+

Financial development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to exceed its 2025 performance in spite of soft oil revenues and ongoing international uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and slowly improving oil output.

However the most current projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly consistent worldwide background. The report highlights GCC consumers as a significant motorist of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are expected to sustain a rise in consumer spending across the Gulf.

Credit growth is also forecast to stay raised as access to monetary services broadens. With GCC main banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are most likely to decline, giving homes and businesses even more impetus to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a combined photo.

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This could weigh on firsthalf development, particularly for economies more reliant on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and international demand improves. Qatar, on the other hand, sticks out as a regional outperformer, with considerable growths in gas production and exports anticipated to lift its total economic efficiency.

Saudi Arabia's 2026 budget plan anticipates a 6 per cent cut in capital expense as the kingdom aims to narrow its financial deficit by 2 percentage points. The report notes that these cuts might not materialise fully if countercyclical spending measures are activated to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.

In spite of shortterm dangers tied to oil prices and global need, the GCC's 2026 economic outlook is defined by strength in principles: resistant customers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these factors aligning, the region is preparing for one of its most well balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to stay resilient in 2026, driven by strong domestic need and a broadly consistent international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC area is anticipated to broaden 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 said that financial growth in the region is set to speed up to 4.3 percent by 2027, driven by broadening 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 diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outshine their international peers.

In December, the IMF further said that heading 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 stay elevated in the GCC region 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 main banks are expected to follow the US Federal Reserve by reducing financial policy even more, which in turn will decrease financial obligation maintenance costs and increase disposable earnings and need," stated the report.