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

Economic growth throughout the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to surpass its 2025 performance in spite of soft oil incomes and ongoing worldwide unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.
However the current projections suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly stable international backdrop. The report highlights GCC customers as a major motorist of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine non reusable earnings are anticipated to sustain a rise in customer costs across the Gulf.
Credit development is also anticipated to remain raised as access to financial services broadens. With GCC main banks expected to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are most likely to decrease, giving families and companies even more motivation to spend and invest. While the nonoil sector continues to anchor the area's strength, the GCC's hydrocarbon outlook provides a blended photo.
This might weigh on firsthalf growth, especially for economies more depending 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 international demand improves. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports expected to raise its general financial performance.
Saudi Arabia's 2026 budget plan prepares for a 6 percent cut in capital investment as the kingdom aims to narrow its financial deficit by two portion points. However, the report keeps in mind that these cuts may not materialise fully if countercyclical costs measures are activated to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their development agendas.
Despite shortterm threats tied to oil costs and global need, the GCC's 2026 financial outlook is specified by strength in principles: resilient consumers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these factors aligning, the area is preparing for one of its most well balanced periods of expansion over the last few years anchored by a clear upward trajectory in GDP development.
RIYADH: Gulf Cooperation Council local economies are anticipated to stay durable in 2026, driven by strong domestic need and a broadly stable worldwide economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gdp of the GCC area is expected to expand by 4.4 percent in 2026, up from the predicted 4 percent this year.
We expect GCC growth will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated 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 towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to outshine their global peers.
In December, the IMF even more stated that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, close 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 anticipated to remain raised in the GCC region during 2026, as access to monetary services is expected to grow and loaning is forecasted to be supported by more cuts in rate of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by easing financial policy further, which in turn will reduce debt servicing costs and boost non reusable income and need," stated the report.
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