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ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outperform its 2025 performance despite muted oil revenues and continuous international unpredictabilities. According to a brand-new Oxford Economics research rundown, GCC GDP growth is anticipated to rise to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resilient nonenergy sector, strong consumer characteristics, and gradually improving oil output.

However the newest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly steady worldwide background. The report highlights GCC consumers as a major chauffeur of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are expected to fuel a surge in customer spending across the Gulf.

Credit growth is also forecast to stay elevated as access to financial services widens. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decline, providing homes and companies further incentive to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a combined picture.

Emerging Strategic Shifts Shaping the 2026 GCC Economy

This could weigh on firsthalf growth, particularly for economies more dependent on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and global need enhances. Qatar, on the other hand, sticks out as a regional outperformer, with considerable growths in gas production and exports anticipated to raise its overall economic performance.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts may not materialise fully if countercyclical costs steps are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their development agendas.

Despite shortterm risks tied to oil costs and international demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil characteristics, and strategic financial planning. With these elements aligning, the area is preparing for one of its most well balanced periods of growth in current years anchored by a clear upward trajectory in GDP growth.

Operational Excellence: a Strategic Pillar for 2026 Success

RIYADH: Gulf Cooperation Council local economies are expected to stay durable in 2026, driven by strong domestic need and a broadly steady international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC area is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.

We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial development in the region is set to speed up to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities represented 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued development towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to surpass their worldwide peers. Oxford Economics said that low inflation has actually assisted safeguard development in genuine non reusable earnings, which has also been supported by strong demand and really low joblessness rates."We do not picture any let-up, as federal governments continue to push for greater foreign direct financial investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more stated that headline inflation is anticipated 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 development is expected to stay raised in the GCC area throughout 2026, as access to monetary services is anticipated to grow and lending is projected to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the US Federal Reserve by easing monetary policy even more, which in turn will lower debt servicing expenses and boost non reusable income and demand," stated the report.