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Organization news and monetary news, analysis, opinion and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

Economic growth throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to outperform its 2025 performance regardless of muted oil revenues and ongoing global uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 per cent in 2025, reflecting a resistant nonenergy sector, strong consumer characteristics, and slowly improving oil output.
However the current forecasts suggest that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic demand and a broadly steady worldwide background. The report highlights GCC customers as a significant driver of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable incomes are expected to fuel a surge in customer costs throughout the Gulf.
Ways to Enhance Middle East Corporate StrategyCredit growth is also forecast to remain raised as access to financial services expands. With GCC central banks expected to follow expected United States Federal Reserve rate cuts due to the region's dollar pegs, borrowing costs are most likely to decrease, providing households and businesses further inspiration to spend and invest. While the nonoil sector continues to anchor the area's resilience, the GCC's hydrocarbon outlook presents a blended photo.
Advanced Planning for Middle East LeadershipThis could weigh on firsthalf growth, particularly for economies more based on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and international demand enhances. Qatar, meanwhile, stands out as a local outperformer, with substantial expansions in gas production and exports expected to raise its total economic efficiency.
Saudi Arabia's 2026 budget prepares for a 6 per cent cut in capital expenditure as the kingdom intends to narrow its fiscal deficit by two percentage points. Nevertheless, the report notes that these cuts may not materialise totally if countercyclical spending measures are triggered to support growth. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.
Despite shortterm threats connected to oil prices and global demand, the GCC's 2026 financial outlook is defined by strength in principles: resilient customers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these factors lining up, the region is preparing for one of its most balanced durations of growth over the last few years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council local economies are anticipated to stay durable in 2026, driven by strong domestic demand and a broadly constant international economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC region is anticipated to broaden by 4.4 percent in 2026, up from the predicted 4 percent this year.
We anticipate GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center said that economic growth in the region is set to speed up to 4.3 percent by 2027, driven by broadening non-oil sectors.

Non-oil activities accounted for 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the area's continued development toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outperform their international peers.
In December, the IMF further said that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is expected to remain raised in the GCC area throughout 2026, as access to monetary services is anticipated to grow and lending is projected to be supported by additional cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC reserve banks are expected to follow the US Federal Reserve by relieving financial policy even more, which in turn will lower debt maintenance expenses and boost non reusable earnings and demand," said the report.
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