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Service news and financial news, analysis, opinion and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Financial development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to exceed its 2025 performance in spite of soft oil incomes and ongoing global unpredictabilities. According to a brand-new Oxford Economics research study instruction, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually improving oil output.

However the most recent forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic demand and a broadly consistent global background. The report highlights GCC consumers as a major motorist of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a rise in consumer costs across the Gulf.

Credit growth is also anticipated to stay elevated as access to financial services broadens. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decline, offering homes and companies even more inspiration to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook provides a mixed photo.

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This could weigh on firsthalf growth, especially for economies more based on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and international need enhances. Qatar, on the other hand, stands out as a local outperformer, with substantial expansions in gas production and exports expected to raise its general financial performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital expense as the kingdom aims to narrow its fiscal deficit by two percentage points. The report notes that these cuts might not materialise completely if countercyclical costs 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.

Regardless of shortterm dangers connected to oil prices and worldwide need, the GCC's 2026 financial outlook is specified by strength in fundamentals: durable customers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal preparation. With these factors lining up, the region is preparing for among its most well balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP development.

Emerging Future Trends Defining the 2026 GCC Market

RIYADH: Gulf Cooperation Council local economies are anticipated to remain resilient in 2026, driven by strong domestic need and a broadly stable international economy, according to an analysis. In its latest 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 forecasted 4 percent this year.

We expect GCC development 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 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 progress towards diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to exceed their global peers. Oxford Economics stated that low inflation has assisted safeguard development in real non reusable income, which has likewise been supported by strong demand and extremely low unemployment rates."We do not imagine any let-up, as governments continue to promote greater foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF even more stated that heading inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to stay raised in the GCC region throughout 2026, as access to financial services is expected to grow and financing is forecasted to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by alleviating financial policy further, which in turn will lower financial obligation servicing expenses and enhance non reusable income and need," said the report.