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

Financial development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area predicted to surpass its 2025 performance in spite of muted oil revenues and continuous international uncertainties. According to a brand-new Oxford Economics research study instruction, GCC GDP development is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, showing a durable nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.
However the most recent projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic need and a broadly consistent worldwide backdrop. The report highlights GCC customers as a significant driver of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are expected to sustain a rise in customer costs across the Gulf.
Credit development is likewise forecast to remain raised as access to financial services broadens. With GCC central banks expected to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are most likely to decline, giving households and organizations further motivation to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a mixed picture.
This might weigh on firsthalf growth, especially for economies more based on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and global need enhances. Qatar, meanwhile, sticks out as a regional outperformer, with substantial expansions in gas production and exports expected to raise its total financial efficiency.
Saudi Arabia's 2026 spending plan anticipates a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 portion points. The report keeps in mind that these cuts may not materialise totally if countercyclical costs measures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development agendas.
In spite of shortterm risks connected to oil costs and international need, the GCC's 2026 financial outlook is defined by strength in basics: resilient customers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these factors lining up, 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 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 latest report, Oxford Economics highlighted that the real gross domestic item of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.
We expect GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth 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 ongoing progress toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to outperform their global peers.
In December, the IMF even more stated that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, close to 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 remain elevated in the GCC region throughout 2026, as access to financial services is anticipated to grow and loaning is projected 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 United States Federal Reserve by alleviating financial policy even more, which in turn will reduce financial obligation servicing costs and boost non reusable income and need," stated the report.
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