How to Secure a Competitive Advantage in 2026

Company news and monetary 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 across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to exceed its 2025 performance regardless of muted oil profits and continuous global uncertainties. According to a brand-new Oxford Economics research briefing, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

But the newest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly constant worldwide backdrop. The report highlights GCC customers as a significant motorist 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 consumer costs throughout the Gulf.

Credit growth is likewise anticipated to stay raised as access to financial services broadens. With GCC central banks anticipated to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are likely to decrease, providing families and businesses even more inspiration to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended photo.

Emerging Strategic Trends Defining the 2026 Regional Economy

This could weigh on firsthalf development, especially for economies more based on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten up and global need enhances. Qatar, on the other hand, stands apart as a regional outperformer, with substantial growths in gas production and exports anticipated to raise its total financial efficiency.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by two portion points. The report keeps in mind that these cuts may not materialise totally if countercyclical spending measures are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Despite shortterm threats tied to oil prices and worldwide need, the GCC's 2026 economic outlook is defined by strength in fundamentals: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial preparation. With these elements aligning, the area is preparing for among its most balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP development.

How to Optimise Regional Operations in 2026

RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly steady global 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 forecasted 4 percent this year.

United States trade policy under President Donald Trump has had no noteworthy impact on local development, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It added: "Meanwhile, oil production has slowly increased, offering a boost to the area's economies. 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 area 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 represented 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued development towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to exceed their global peers. Oxford Economics said that low inflation has helped protect development in genuine non reusable earnings, which has also been supported by strong demand and extremely low joblessness rates."We do not imagine any let-up, as governments continue to push for higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further said that headline inflation is expected to remain 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 growth is expected to remain raised in the GCC region throughout 2026, as access to financial services is anticipated 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 main banks are anticipated to follow the US Federal Reserve by reducing monetary policy even more, which in turn will decrease debt servicing costs and increase disposable income and need," stated the report.