Predicting the Next GCC Business Environment

Company news and financial 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+

Financial growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the area forecasted to surpass its 2025 performance in spite of muted oil incomes and ongoing worldwide uncertainties. According to a brand-new Oxford Economics research briefing, GCC GDP growth is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resistant nonenergy sector, strong customer dynamics, and slowly improving oil output.

But the current forecasts suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by reinforcing domestic need and a broadly stable worldwide backdrop. The report highlights GCC customers as a major driver of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable incomes are expected to fuel a rise in consumer costs throughout the Gulf.

Credit growth is likewise forecast to remain raised as access to financial services widens. With GCC reserve banks anticipated to follow awaited US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decrease, providing homes and businesses even more incentive to invest and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended photo.

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This could weigh on firsthalf development, particularly for economies more dependent on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and worldwide need improves. Qatar, meanwhile, stands out as a local outperformer, with substantial growths in gas production and exports expected to raise its overall economic efficiency.

Saudi Arabia's 2026 budget expects a 6 percent cut in capital expense as the kingdom intends to narrow its fiscal deficit by 2 portion points. The report keeps in mind that these cuts might not materialise totally if countercyclical spending procedures are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Despite shortterm risks connected to oil rates and worldwide need, the GCC's 2026 economic outlook is specified by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial planning. With these elements lining up, the region is preparing for among its most balanced durations of growth in current years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to stay durable in 2026, driven by strong domestic demand and a broadly steady global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gdp of the GCC area is expected to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.

We anticipate GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial 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 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 diversity. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to surpass their global peers.

In December, the IMF further said that headline inflation is expected to remain listed below 2 percent in Bahrain, Oman, and Qatar, near 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 region during 2026, as access to monetary services is anticipated to grow and lending is predicted to be supported by further cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by easing financial policy further, which in turn will decrease debt servicing costs and boost disposable earnings and demand," said the report.