Industrial Excellence: a Strategic Driver for 2026 Growth

Company news and monetary news, analysis, opinion and data covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area projected to outperform its 2025 performance regardless of muted oil earnings and ongoing global uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

But the latest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly steady worldwide backdrop. The report highlights GCC consumers as a major driver of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to fuel a surge in consumer costs throughout the Gulf.

Credit growth is also forecast to stay elevated as access to monetary services widens. With GCC central banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decrease, offering homes and organizations further inspiration to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook provides a mixed image.

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This could weigh on firsthalf growth, especially for economies more based on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international need improves. Qatar, meanwhile, stands out as a regional outperformer, with considerable growths in gas production and exports expected to lift its overall financial performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by two percentage points. However, the report notes that these cuts may not materialise completely if countercyclical spending procedures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their development programs.

Despite shortterm threats tied to oil rates and global demand, the GCC's 2026 financial outlook is defined by strength in principles: resistant customers, robust nonenergy sectors, improving oil characteristics, and strategic fiscal planning. With these aspects lining up, the area is preparing for one of its most well balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to remain resilient in 2026, driven by strong domestic demand and a broadly consistent global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gdp 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 notable influence on regional growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "Meanwhile, oil production has slowly increased, providing a boost to the area'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 said that economic development in the region 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 represented 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued progress towards diversification. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their international peers. Oxford Economics stated that low inflation has assisted secure growth in genuine disposable income, which has also been supported by strong need and very low joblessness rates."We do not picture any let-up, as governments continue to push for higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report added.

In December, the IMF further stated that heading inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to remain elevated in the GCC region during 2026, as access to financial services is expected to grow and financing is predicted to be supported by additional cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC central banks are expected to follow the United States Federal Reserve by reducing monetary policy further, which in turn will lower debt maintenance expenses and boost disposable income and need," stated the report.