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Service news and monetary news, analysis, viewpoint and statistics 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 speed up in 2026, with the area predicted to outperform its 2025 performance regardless of soft oil earnings and continuous international unpredictabilities. According to a brand-new Oxford Economics research study briefing, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly improving oil output.

The most current projections recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic need and a broadly stable international backdrop. The report highlights GCC consumers as a significant chauffeur of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to fuel a surge in customer spending across the Gulf.

Credit growth is also anticipated to remain elevated as access to monetary services broadens. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decrease, offering families and companies even more motivation to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a combined image.

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This might weigh on firsthalf growth, especially for economies more reliant on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and global demand enhances. Qatar, on the other hand, stands apart as a local outperformer, with substantial expansions in gas production and exports expected to lift its total economic efficiency.

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

Despite shortterm threats connected to oil rates and worldwide demand, the GCC's 2026 economic outlook is defined by strength in principles: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal preparation. With these elements lining up, the region is preparing for among its most well balanced periods of expansion recently anchored by a clear upward trajectory in GDP development.

Analysing New GCC Research for Strategic Growth

RIYADH: Gulf Cooperation Council local economies are expected to stay durable in 2026, driven by strong domestic need and a broadly stable worldwide economy, according to an analysis. In its newest report, Oxford Economics highlighted that the real gross domestic product of the GCC region is expected to broaden 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 stated that financial growth in the area is set to accelerate to 4.3 percent by 2027, driven by expanding 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 development towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are expected to exceed their international peers. Oxford Economics stated that low inflation has helped safeguard growth in real non reusable income, which has likewise been supported by strong demand and extremely low unemployment rates."We do not envision any let-up, as federal governments continue to promote higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF even more said that heading inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to remain elevated in the GCC region during 2026, as access to financial services is anticipated to grow and lending is forecasted to be supported by additional cuts in rate of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by easing financial policy even more, which in turn will lower financial obligation servicing expenses and boost non reusable earnings and need," said the report.