Key Tips for Industrial Excellence in the GCC

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

ANSR July GCC PRs 50DR+

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to surpass its 2025 performance regardless of soft oil incomes and continuous global unpredictabilities. According to a new Oxford Economics research study briefing, GCC GDP growth is anticipated to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

However the most current projections recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by reinforcing domestic demand and a broadly constant global backdrop. The report highlights GCC consumers as a major chauffeur of the region's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are anticipated to sustain a surge in consumer costs throughout the Gulf.

Credit development is likewise forecast to remain raised as access to monetary services expands. With GCC reserve banks anticipated to follow expected US Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are likely to decline, offering households and organizations further motivation to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a blended image.

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This could weigh on firsthalf growth, especially for economies more depending on oil extraction. Oxford Economics projects a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten up and worldwide need enhances. Qatar, on the other hand, sticks out as a regional outperformer, with considerable growths in gas production and exports anticipated to raise its general financial efficiency.

Saudi Arabia's 2026 spending plan expects a 6 per cent cut in capital investment as the kingdom intends to narrow its financial deficit by two portion points. The report notes that these cuts might not materialise totally 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 development programs.

Regardless of shortterm threats connected to oil rates and worldwide need, the GCC's 2026 economic outlook is specified by strength in principles: resistant consumers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these elements aligning, the region is getting ready for one of its most balanced durations of expansion in the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are anticipated to stay resilient in 2026, driven by strong domestic need and a broadly stable international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the real gross domestic product of the GCC area is anticipated to expand by 4.4 percent in 2026, up from the projected 4 percent this year.

We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that financial growth 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 towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their worldwide peers.

In December, the IMF even more stated that heading inflation is expected to stay 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 growth is anticipated to remain elevated in the GCC region throughout 2026, as access to monetary services is anticipated to grow and lending is projected to be supported by further cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the United States Federal Reserve by reducing financial policy further, which in turn will reduce financial obligation servicing costs and enhance non reusable earnings and demand," stated the report.