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Business news and monetary news, analysis, opinion and data covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Economic development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area forecasted to outperform its 2025 performance despite muted oil incomes and ongoing international unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP development is anticipated to rise to 4.4 per cent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong consumer dynamics, and gradually improving oil output.
The newest projections suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic demand and a broadly steady international backdrop. The report highlights GCC customers as a significant driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to sustain a rise in customer costs throughout the Gulf.
Operational Excellence: a Strategic Driver for Regional GrowthCredit development is likewise forecast to stay elevated as access to financial services widens. With GCC main banks expected to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decline, giving households and services further motivation to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a combined image.
Operational Excellence: a Strategic Driver for Regional GrowthThis could weigh on firsthalf growth, particularly for economies more reliant on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global demand improves. Qatar, on the other hand, stands out as a regional outperformer, with significant expansions in gas production and exports anticipated to raise its total financial performance.
Saudi Arabia's 2026 spending plan expects a 6 percent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by two percentage points. However, the report notes that these cuts might 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 development agendas.
In spite of shortterm dangers connected to oil prices and worldwide need, the GCC's 2026 economic outlook is defined by strength in principles: durable consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial planning. With these aspects aligning, the area is preparing for one of its most balanced durations of expansion recently anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are anticipated to remain durable in 2026, driven by strong domestic demand and a broadly stable worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic item of the GCC region is anticipated to expand by 4.4 percent in 2026, up from the forecasted 4 percent this year.
United States trade policy under President Donald Trump has had no noteworthy influence on local growth, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It added: "Meanwhile, oil production has actually slowly increased, offering an increase to the area's economies. We anticipate GCC development will rise 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.

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 development towards diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outperform their international peers.
In December, the IMF even more stated that headline inflation is expected to remain 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 growth is expected to stay raised in the GCC area during 2026, as access to financial services is expected to grow and loaning 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 United States Federal Reserve by reducing financial policy further, which in turn will lower debt servicing costs and increase non reusable income and demand," said the report.
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