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Service news and financial news, analysis, opinion and stats covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Financial development throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to exceed its 2025 performance regardless of soft oil revenues and ongoing worldwide uncertainties. According to a new Oxford Economics research study instruction, GCC GDP growth is anticipated to rise to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer dynamics, and slowly improving oil output.

However the newest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly consistent international background. The report highlights GCC customers as a major driver of the region's economic performance heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are expected to sustain a surge in consumer costs throughout the Gulf.

Credit development is likewise forecast to remain elevated as access to financial services expands. With GCC central banks expected to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are most likely to decrease, providing households and businesses further impetus to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a blended picture.

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This might weigh on firsthalf growth, particularly for economies more based on oil extraction. Nevertheless, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international need enhances. Qatar, on the other hand, stands out as a local outperformer, with considerable growths in gas production and exports expected to lift its overall economic performance.

Saudi Arabia's 2026 budget plan anticipates a 6 percent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by two portion points. Nevertheless, the report keeps in mind that these cuts may not materialise completely if countercyclical costs measures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development agendas.

Despite shortterm dangers tied to oil rates and worldwide demand, the GCC's 2026 economic outlook is defined by strength in principles: resilient consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these factors lining up, the region is preparing for one of its most balanced durations of growth over 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 demand and a broadly consistent international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is expected to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.

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 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 towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outperform their international peers.

In December, the IMF further stated that heading inflation is anticipated to remain 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 anticipated to stay elevated in the GCC area throughout 2026, as access to financial services is expected to grow and loaning is predicted to be supported by more cuts in interest rates."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 further, which in turn will decrease financial obligation servicing costs and boost disposable income and need," stated the report.