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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

Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to exceed its 2025 performance in spite of soft oil incomes and continuous global uncertainties. According to a new Oxford Economics research study briefing, GCC GDP development is expected to rise to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly improving oil output.
The latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic demand and a broadly constant worldwide background. The report highlights GCC consumers as a major chauffeur of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to sustain a surge in consumer spending across the Gulf.
Credit growth is likewise anticipated to stay elevated as access to monetary services broadens. With GCC reserve banks anticipated to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decline, providing homes and companies even more motivation to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a combined photo.
This might weigh on firsthalf growth, particularly for economies more based on oil extraction. Oxford Economics forecasts a rebound later on in 2026, with Opec+ members expected to resume raising production as stocks tighten and international need enhances. Qatar, on the other hand, stands out as a regional outperformer, with substantial expansions in gas production and exports anticipated to raise its total economic efficiency.
Saudi Arabia's 2026 budget plan expects a 6 percent cut in capital expense as the kingdom intends to narrow its financial deficit by 2 percentage points. Nevertheless, the report notes that these cuts might not materialise completely if countercyclical costs procedures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development agendas.
Despite shortterm risks connected to oil prices and global need, the GCC's 2026 economic outlook is defined by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these elements 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 growth.
RIYADH: Gulf Cooperation Council regional economies are expected to stay resilient in 2026, driven by strong domestic demand and a broadly consistent worldwide 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 expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.
We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial development in the area is set to speed up to 4.3 percent by 2027, driven by expanding non-oil sectors.
Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued development toward diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to surpass their international peers.
In December, the IMF even more said 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 slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to stay elevated in the GCC area throughout 2026, as access to monetary services is anticipated to grow and financing is predicted to be supported by more 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 alleviating monetary policy further, which in turn will decrease debt servicing costs and enhance disposable income and need," stated the report.
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