How to Secure a Competitive Advantage in 2026

Business news and monetary 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 throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outshine its 2025 performance in spite of muted oil profits and continuous worldwide unpredictabilities. According to a new Oxford Economics research briefing, GCC GDP growth is expected to increase to 4.4 percent in 2026, up from 4 percent in 2025, reflecting a resistant nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

But the current forecasts suggest that Gulf economies are now wellpositioned to restore momentum, buoyed by strengthening domestic need and a broadly stable global background. The report highlights GCC customers as a major driver of the region's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable incomes are expected to fuel a rise in consumer spending throughout the Gulf.

Credit development is also anticipated to remain elevated as access to financial services widens. With GCC main banks anticipated to follow awaited US Federal Reserve rate cuts due to the area's dollar pegs, obtaining expenses are most likely to decrease, giving families and services even more motivation to invest and invest. While the nonoil sector continues to anchor the region's strength, the GCC's hydrocarbon outlook provides a combined photo.

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This might weigh on firsthalf development, especially for economies more depending on oil extraction. Oxford Economics predicts a rebound later in 2026, with Opec+ members anticipated to resume raising production as stocks tighten and international demand enhances. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports expected to lift its overall economic performance.

Saudi Arabia's 2026 budget expects a 6 percent cut in capital investment as the kingdom intends to narrow its fiscal deficit by two percentage points. Nevertheless, the report keeps in mind that these cuts might not materialise totally if countercyclical spending steps are activated to support development. By contrast, more diversified economies such as the UAE and Qatar are expected to continue advancing their development agendas.

In spite of shortterm threats tied to oil rates and international need, the GCC's 2026 financial outlook is specified by strength in fundamentals: resistant consumers, robust nonenergy sectors, improving oil dynamics, and tactical financial planning. With these aspects aligning, the area is getting ready for one of its most balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP development.

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RIYADH: Gulf Cooperation Council local economies are expected to remain durable in 2026, driven by strong domestic demand and a broadly steady worldwide economy, according to an analysis. In its newest 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 expect GCC development will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated 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 overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress towards diversity. According to Oxford Economics, GCC customers will be standout entertainers in 2026 and are expected to outperform their worldwide peers.

In December, the IMF further said that headline inflation is expected to remain below 2 percent in Bahrain, Oman, and Qatar, near 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 throughout 2026, as access to financial services is expected to grow and loaning is forecasted to be supported by more 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 relieving financial policy even more, which in turn will decrease debt servicing expenses and improve disposable income and need," said the report.