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

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to outperform its 2025 performance despite muted oil earnings and continuous global uncertainties. According to a new Oxford Economics research briefing, GCC GDP development is expected to increase to 4.4 per cent in 2026, up from 4 percent in 2025, showing a resistant nonenergy sector, strong consumer characteristics, and slowly enhancing oil output.

However the latest forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly constant global backdrop. The report highlights GCC consumers as a significant motorist of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to fuel a surge in consumer costs across the Gulf.

Credit growth is likewise forecast to stay raised as access to monetary services broadens. With GCC reserve banks anticipated to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decrease, providing households and companies further inspiration to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a mixed picture.

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This could weigh on firsthalf development, especially for economies more reliant on oil extraction. However, Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and international demand improves. Qatar, meanwhile, sticks out as a local outperformer, with considerable growths in gas production and exports expected to raise its total economic efficiency.

Saudi Arabia's 2026 budget plan expects a 6 per cent cut in capital expenditure as the kingdom intends to narrow its financial deficit by two portion points. Nevertheless, the report keeps in mind that these cuts might not materialise totally if countercyclical spending steps are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Regardless of shortterm threats connected to oil rates and worldwide need, the GCC's 2026 financial outlook is specified by strength in principles: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial planning. With these factors aligning, the area is getting ready for one of its most balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

Operational Excellence: a Key Pillar for 2026 Growth

RIYADH: Gulf Cooperation Council local economies are anticipated to remain resilient in 2026, driven by strong domestic demand and a broadly consistent global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the genuine gross domestic product of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.

We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the region is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities represented 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing development towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outperform their worldwide peers. Oxford Economics said that low inflation has helped secure development in real disposable income, which has actually also been supported by strong need and extremely low joblessness rates."We do not picture any let-up, as governments continue to push for higher foreign direct financial investment in their push to diversify their economies away from oil and gas," the report included.

In December, the IMF even more said that headline inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, near 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 elevated in the GCC area during 2026, as access to financial services is expected to grow and lending is predicted to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the US Federal Reserve by reducing financial policy even more, which in turn will decrease financial obligation servicing expenses and improve non reusable earnings and need," stated the report.