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Service news and financial news, analysis, viewpoint and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Economic development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region projected to outshine its 2025 performance in spite of soft oil revenues and ongoing international uncertainties. According to a new Oxford Economics research instruction, GCC GDP development is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a durable nonenergy sector, strong customer characteristics, and slowly enhancing oil output.
The latest forecasts suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly consistent worldwide background. The report highlights GCC consumers as a major driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are expected to fuel a rise in customer spending across the Gulf.
The Strategic Advantages of Deep Market IntelligenceCredit growth is likewise anticipated to stay raised as access to financial services expands. With GCC central banks anticipated to follow anticipated US Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are most likely to decrease, providing households and businesses further motivation to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook provides a mixed photo.
The Strategic Advantages of Deep Market IntelligenceThis could weigh on firsthalf growth, particularly for economies more based on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand improves. Qatar, meanwhile, stands out as a local outperformer, with considerable growths in gas production and exports expected to raise its general financial performance.
Saudi Arabia's 2026 budget anticipates a 6 per cent cut in capital expense as the kingdom aims to narrow its financial deficit by two percentage points. The report keeps in mind that these cuts might not materialise completely if countercyclical spending measures are triggered to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.
Regardless of shortterm dangers tied to oil prices and international need, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, improving oil characteristics, and tactical fiscal preparation. With these aspects lining up, the region is getting ready for among its most well balanced periods of growth over the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resilient in 2026, driven by strong domestic demand and a broadly consistent international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gross domestic product of the GCC region 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 stated that financial development in the region 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 ongoing development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to outperform their worldwide peers.
In December, the IMF further stated that heading inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 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 loaning is predicted to be supported by further cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by reducing financial policy even more, which in turn will reduce financial obligation servicing costs and enhance non reusable income and demand," stated the report.
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