Emerging Strategic Shifts Defining the 2026 Regional Market

Company 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+

Financial development across the Gulf Cooperation Council (GCC) is set to accelerate in 2026, with the region predicted to surpass its 2025 efficiency despite muted oil incomes and continuous worldwide unpredictabilities. According to a new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resilient nonenergy sector, strong customer characteristics, and gradually enhancing oil output.

The newest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by reinforcing domestic demand and a broadly steady global background. The report highlights GCC customers as a significant driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing genuine disposable earnings are expected to sustain a surge in customer costs across the Gulf.

Credit growth is also forecast to remain raised as access to financial services expands. 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 homes and businesses further inspiration to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a blended picture.

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This could weigh on firsthalf development, especially for economies more based on oil extraction. Nevertheless, Oxford Economics predicts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten up and international demand enhances. Qatar, meanwhile, sticks out as a regional outperformer, with substantial growths in gas production and exports expected to lift its overall economic performance.

Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital investment as the kingdom aims to narrow its financial deficit by 2 portion points. The report keeps in mind that these cuts might not materialise fully if countercyclical costs measures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Despite shortterm threats connected to oil costs and international need, the GCC's 2026 economic outlook is defined by strength in basics: durable customers, robust nonenergy sectors, improving oil characteristics, and strategic financial planning. With these elements lining up, the region is preparing for among its most balanced periods of expansion recently anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are expected to remain resistant in 2026, driven by strong domestic need and a broadly consistent global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic item of the GCC region is expected to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.

US trade policy under President Donald Trump has had no significant impact on local development, and non-energy sectors have sustained their robust momentum," said Oxford Economics. It included: "Meanwhile, oil production has actually slowly increased, offering a boost to the region's economies. 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 expanding non-oil sectors.

ANSR July GCC PRs 50DR+

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 ongoing development towards diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are expected to exceed their worldwide peers.

In December, the IMF further stated that heading inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, near 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 area during 2026, as access to financial services is expected to grow and financing is predicted to be supported by more cuts in rates of interest."Owing to their currency pegs to the US dollar, GCC reserve banks are expected to follow the US Federal Reserve by reducing monetary policy even more, which in turn will lower debt servicing expenses and enhance non reusable income and demand," said the report.