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Company news and financial news, analysis, viewpoint and stats covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to outshine its 2025 performance despite muted oil earnings and ongoing global uncertainties. According to a new Oxford Economics research briefing, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 percent in 2025, showing a resistant nonenergy sector, strong customer dynamics, and slowly improving oil output.
The newest forecasts recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic demand and a broadly steady worldwide background. 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 non reusable earnings are expected to fuel a rise in consumer costs throughout the Gulf.
Credit growth is likewise anticipated to stay raised as access to monetary services expands. With GCC reserve banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decline, giving families and services further impetus to invest and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook presents a mixed image.
Charting Regional Market Strategy in 2026This might weigh on firsthalf growth, especially for economies more reliant on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and international need enhances. Qatar, meanwhile, stands out as a local outperformer, with substantial expansions in gas production and exports expected to lift its overall financial efficiency.
Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital expense as the kingdom intends to narrow its financial deficit by two percentage points. However, the report keeps in mind that these cuts might not materialise completely if countercyclical costs 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 connected to oil rates and international demand, the GCC's 2026 economic outlook is defined by strength in basics: resilient customers, robust nonenergy sectors, improving oil characteristics, and strategic financial preparation. With these elements aligning, the area is preparing for one of its most well balanced durations of expansion recently anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council local economies are anticipated to stay resistant in 2026, driven by strong domestic need and a broadly stable worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gdp of the GCC area 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 actually had no noteworthy effect on regional development, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has gradually increased, offering a boost to the area's economies. We expect GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that financial growth in the area is set to accelerate 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 region's continued progress towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to exceed their worldwide peers. Oxford Economics stated that low inflation has helped secure development in real disposable income, which has likewise been supported by strong demand and really low joblessness rates."We do not imagine any let-up, as governments continue to press for greater foreign direct financial investment in their push to diversify their economies away from oil and gas," the report included.
In December, the IMF further stated that heading inflation is expected to stay below 2 percent in Bahrain, Oman, and Qatar, close 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 stay elevated in the GCC area during 2026, as access to financial services is anticipated to grow and loaning is forecasted to be supported by additional cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the United States Federal Reserve by easing monetary policy even more, which in turn will reduce debt servicing costs and improve disposable income and need," said the report.
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