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

ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outshine its 2025 performance despite soft oil earnings and ongoing international uncertainties. According to a new Oxford Economics research instruction, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong consumer dynamics, and slowly enhancing oil output.

But the most recent forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic need and a broadly consistent global backdrop. The report highlights GCC consumers as a major driver of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to sustain a surge in customer spending across the Gulf.

Credit development is also anticipated to stay raised as access to monetary services widens. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decline, providing families and businesses further incentive to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a combined picture.

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This could weigh on firsthalf growth, especially for economies more depending on oil extraction. Nevertheless, Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global demand enhances. Qatar, meanwhile, sticks out as a regional outperformer, with substantial expansions in gas production and exports expected to raise its total economic efficiency.

Saudi Arabia's 2026 budget prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 percentage points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending steps are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development programs.

Despite shortterm risks connected to oil rates and global demand, the GCC's 2026 financial outlook is specified by strength in principles: resilient consumers, robust nonenergy sectors, improving oil characteristics, and tactical fiscal preparation. With these aspects lining up, the region is getting ready for one of its most balanced periods of growth in the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resilient in 2026, driven by strong domestic need and a broadly steady global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real 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.

US trade policy under President Donald Trump has had no significant influence on regional development, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has slowly increased, supplying 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 said that financial 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's ongoing progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to exceed their international peers. Oxford Economics stated that low inflation has actually assisted protect growth in real disposable income, which has actually also been supported by strong demand and really low unemployment rates."We do not visualize any let-up, as federal governments continue to press for higher foreign direct financial investment in their push to diversify their economies away from oil and gas," the report included.

In December, the IMF further stated that headline inflation is expected to remain listed 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 growth is expected to remain raised in the GCC region throughout 2026, as access to monetary services is anticipated to grow and loaning is projected to be supported by additional cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC central banks are expected to follow the United States Federal Reserve by easing financial policy further, which in turn will decrease debt maintenance costs and enhance non reusable earnings and demand," said the report.