Reviewing New GCC Data for Strategic Insights

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

ANSR July GCC PRs 50DR+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area predicted to outshine its 2025 performance in spite of soft oil incomes and continuous global uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a resilient nonenergy sector, strong consumer characteristics, and slowly improving oil output.

The latest projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic need and a broadly stable international backdrop. The report highlights GCC consumers as a major chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are anticipated to sustain a surge in customer spending throughout the Gulf.

Credit growth is likewise anticipated to remain raised as access to monetary services expands. With GCC central banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, obtaining costs are most likely to decrease, offering homes and services further impetus to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a blended photo.

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This could weigh on firsthalf development, particularly for economies more based on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and global demand improves. Qatar, meanwhile, stands apart as a local outperformer, with considerable expansions in gas production and exports expected to lift its total economic efficiency.

Saudi Arabia's 2026 budget prepares for a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 portion points. However, the report keeps in mind that these cuts may not materialise fully if countercyclical spending procedures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

In spite of shortterm threats tied to oil rates and global demand, the GCC's 2026 financial outlook is specified by strength in fundamentals: durable customers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial planning. With these factors lining up, the area is getting ready for among its most well balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are expected to remain resilient in 2026, driven by strong domestic need and a broadly steady worldwide economy, according to an analysis. In its newest 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 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 economic growth 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 accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress toward diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to surpass their worldwide peers. Oxford Economics said that low inflation has actually assisted safeguard development in genuine disposable earnings, which has actually also been supported by strong need and really low joblessness rates."We do not envision any let-up, as governments continue to promote greater foreign direct investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more said that headline inflation is expected to remain listed 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 anticipated 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 further cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by reducing financial policy further, which in turn will reduce debt servicing expenses and boost disposable income and need," said the report.