Key Steps for Industrial Excellence in the GCC

Business news and monetary news, analysis, opinion 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 area projected to outperform its 2025 performance in spite of muted oil incomes and continuous international unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is expected to rise to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

The newest forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic demand and a broadly stable international backdrop. The report highlights GCC customers as a major driver of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are expected to fuel a rise in consumer costs across the Gulf.

Credit development is also anticipated to stay raised as access to monetary services widens. With GCC reserve banks expected to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, borrowing expenses are likely to decline, giving households and companies even more motivation to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a blended picture.

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This might weigh on firsthalf growth, particularly for economies more depending on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand enhances. Qatar, meanwhile, stands apart as a regional outperformer, with substantial expansions in gas production and exports anticipated to lift its overall financial efficiency.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent 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 fully if countercyclical costs measures are activated to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development programs.

In spite of shortterm dangers connected to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in fundamentals: resilient consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic financial planning. With these factors lining up, the region is getting ready for among its most balanced durations of growth recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are expected to stay resilient in 2026, driven by strong domestic demand 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 anticipated to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We expect GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic growth in the area is set to speed up 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 area's continued progress towards diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to exceed their global peers.

In December, the IMF further said that headline inflation is anticipated to remain listed 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 anticipated to remain elevated in the GCC area throughout 2026, as access to financial services is expected to grow and lending is projected to be supported by more cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by easing financial policy even more, which in turn will reduce financial obligation maintenance costs and boost disposable income and demand," stated the report.