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ANSR July GCC PRs 50DR+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region projected to surpass its 2025 performance despite muted oil profits and ongoing global unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP development is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

The latest forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly steady global backdrop. The report highlights GCC consumers as a major chauffeur of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are anticipated to fuel a surge in consumer costs across the Gulf.

Credit growth is also forecast to remain elevated as access to monetary services broadens. With GCC main banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decrease, offering families and businesses even more impetus to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a combined image.

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This might weigh on firsthalf development, particularly for economies more dependent on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten up and international demand improves. Qatar, meanwhile, stands apart as a local outperformer, with significant growths in gas production and exports expected to lift its general economic efficiency.

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

Regardless of shortterm dangers connected to oil prices and international need, the GCC's 2026 financial outlook is defined by strength in principles: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and strategic financial preparation. With these factors lining up, the area is preparing for among its most well balanced periods of expansion recently anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to remain durable in 2026, driven by strong domestic need and a broadly constant global economy, according to an analysis. In its newest report, Oxford Economics highlighted that the genuine gross domestic item of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

We expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic development in the area 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 accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued progress toward diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are anticipated to surpass their international peers.

In December, the IMF even more stated that heading inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, close to 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 remain raised in the GCC area during 2026, as access to financial services is anticipated to grow and lending is forecasted to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the US Federal Reserve by easing monetary policy even more, which in turn will decrease debt servicing costs and enhance non reusable income and need," stated the report.