Predicting the Next Middle East Business Landscape

Service news and financial news, analysis, viewpoint and stats covering the six 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 accelerate in 2026, with the area projected to surpass its 2025 efficiency in spite of soft oil revenues and ongoing worldwide unpredictabilities. According to a brand-new Oxford Economics research instruction, GCC GDP growth 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 slowly improving oil output.

The newest forecasts recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic need and a broadly stable international backdrop. The report highlights GCC consumers as a significant driver of the region's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to fuel a rise in customer costs across the Gulf.

Credit development is also forecast to remain raised as access to financial services expands. With GCC main banks anticipated to follow anticipated United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decline, offering households and businesses even more impetus to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a blended image.

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This might weigh on firsthalf development, especially for economies more depending on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international need enhances. Qatar, meanwhile, stands out as a local outperformer, with significant expansions in gas production and exports expected to lift its total economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 percent cut in capital investment as the kingdom intends to narrow its financial deficit by 2 portion points. The report notes that these cuts may not materialise fully if countercyclical spending procedures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Despite shortterm threats connected to oil costs and international need, the GCC's 2026 economic outlook is specified by strength in basics: durable consumers, robust nonenergy sectors, improving oil dynamics, and strategic financial preparation. With these elements lining up, the region is preparing for one of its most balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council regional economies are expected to stay resistant in 2026, driven by strong domestic demand and a broadly constant worldwide economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is expected to expand by 4.4 percent in 2026, up from the predicted 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 stated that financial 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 area's continued progress toward diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their international peers.

In December, the IMF further said that headline inflation is expected to remain 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 expected to remain elevated in the GCC region during 2026, as access to monetary services is expected to grow and lending is predicted to be supported by further cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC main banks are anticipated to follow the United States Federal Reserve by relieving monetary policy further, which in turn will reduce debt maintenance expenses and increase non reusable earnings and demand," said the report.