How to Maintain a Leading Advantage in 2026

Company news and monetary news, analysis, opinion 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 across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to surpass its 2025 performance despite muted oil profits and continuous international uncertainties. According to a new Oxford Economics research instruction, GCC GDP development is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

But the current projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly consistent international 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 genuine disposable earnings are expected to sustain a rise in customer spending across the Gulf.

Credit growth is also forecast to remain raised as access to financial services broadens. With GCC reserve banks expected to follow anticipated United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are most likely to decline, offering households and companies further motivation to invest and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a blended picture.

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This could weigh on firsthalf development, particularly 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 worldwide demand enhances. Qatar, meanwhile, stands apart as a regional outperformer, with substantial expansions in gas production and exports expected to lift its total financial efficiency.

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

Despite shortterm threats connected to oil costs and worldwide need, the GCC's 2026 financial outlook is specified by strength in basics: durable consumers, robust nonenergy sectors, enhancing oil dynamics, and tactical financial planning. With these aspects lining up, the area is getting ready for among its most balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are expected to remain resistant in 2026, driven by strong domestic need and a broadly steady international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gdp of the GCC area is expected to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.

United States trade policy under President Donald Trump has had no noteworthy effect on regional development, and non-energy sectors have actually sustained their robust momentum," said Oxford Economics. It added: "Meanwhile, oil production has actually gradually increased, providing an increase to the region's economies. We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their worldwide peers. Oxford Economics stated that low inflation has assisted protect development in real non reusable earnings, which has likewise been supported by strong demand and really low joblessness rates."We do not visualize any let-up, as federal governments continue to push for greater foreign direct financial investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF further stated that headline inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to remain raised in the GCC area during 2026, as access to financial services is expected to grow and financing is projected to be supported by further 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 relieving financial policy even more, which in turn will decrease financial obligation servicing expenses and improve non reusable earnings and demand," stated the report.