Accelerating Regional Industrial Expansion through Innovation

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

ANSR July GCC PRs 50DR+

Financial development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outperform its 2025 performance regardless of muted oil revenues and continuous global uncertainties. According to a new Oxford Economics research study briefing, GCC GDP development is anticipated to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a durable nonenergy sector, strong customer dynamics, and slowly improving oil output.

The latest projections suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by enhancing domestic demand and a broadly steady global backdrop. The report highlights GCC consumers as a significant driver of the region's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a rise in consumer spending across the Gulf.

Credit development is also anticipated to stay elevated as access to monetary services broadens. With GCC reserve banks expected to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are likely to decline, giving families and businesses further impetus to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a blended photo.

Comparing Legacy Systems and Future Economic Frameworks

This could weigh on firsthalf development, particularly for economies more based on oil extraction. However, Oxford Economics projects a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten and worldwide need improves. Qatar, meanwhile, sticks out as a regional outperformer, with considerable growths in gas production and exports anticipated to raise its overall financial efficiency.

Saudi Arabia's 2026 budget anticipates a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 percentage points. Nevertheless, the report notes that these cuts might not materialise fully if countercyclical spending measures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are anticipated to continue advancing their advancement agendas.

In spite of shortterm risks tied to oil rates and global need, the GCC's 2026 economic outlook is defined by strength in principles: resilient consumers, robust nonenergy sectors, enhancing oil characteristics, and tactical fiscal planning. With these aspects lining up, the region is preparing for among its most well balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP growth.

Navigating the Next Middle East Business Environment

RIYADH: Gulf Cooperation Council regional economies are anticipated to stay resilient in 2026, driven by strong domestic demand and a broadly stable worldwide economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic item of the GCC area is anticipated to expand 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 said that economic development in the area 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 ongoing progress toward diversification. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are anticipated to outperform their global peers. Oxford Economics stated that low inflation has helped safeguard development in genuine non reusable earnings, which has actually also been supported by strong need and really low joblessness rates."We do not picture any let-up, as governments continue to promote higher foreign direct financial investment in their push to diversify their economies far from oil and gas," the report included.

In December, the IMF further said that headline 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 growth is expected 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 additional cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by reducing monetary policy further, which in turn will reduce financial obligation servicing costs and increase non reusable earnings and demand," said the report.