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Company news and monetary news, analysis, viewpoint and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outshine its 2025 efficiency despite muted oil incomes and continuous global unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP development is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong customer dynamics, and slowly improving oil output.
However the latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly consistent international backdrop. The report highlights GCC consumers as a significant motorist of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are expected to fuel a surge in consumer spending throughout the Gulf.
How Digital Transformation Will Fuel Success?Credit development is also forecast to remain elevated as access to financial services broadens. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decrease, providing families and businesses further motivation to spend and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook presents a combined picture.
This might weigh on firsthalf growth, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten and worldwide need improves. Qatar, on the other hand, stands out as a local outperformer, with considerable growths in gas production and exports anticipated to lift its total economic efficiency.
Saudi Arabia's 2026 spending plan expects a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 portion points. The report notes that these cuts may not materialise completely if countercyclical spending procedures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.
Regardless of shortterm risks connected to oil prices and global demand, the GCC's 2026 financial outlook is defined by strength in basics: durable customers, robust nonenergy sectors, enhancing oil dynamics, and tactical fiscal planning. With these factors aligning, the area is preparing for one of its most balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are expected to remain durable in 2026, driven by strong domestic need and a broadly consistent international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is expected to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.
US trade policy under President Donald Trump has had no notable effect on local growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has slowly increased, offering an increase to the region's economies. We expect GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development in the region is set to speed up to 4.3 percent by 2027, driven by expanding non-oil sectors.

Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued development toward diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outshine their global peers.
In December, the IMF even more said that heading inflation is anticipated to stay below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and slightly above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to remain 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 rates of interest."Owing to their currency pegs to the US dollar, GCC central banks are anticipated to follow the United States Federal Reserve by easing monetary policy even more, which in turn will lower financial obligation maintenance expenses and improve disposable income and demand," said the report.
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