Predicting the Next GCC Corporate Environment

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

ANSR July GCC PRs 50DR+

Economic development across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area predicted to exceed its 2025 efficiency despite muted oil earnings and continuous international uncertainties. According to a new Oxford Economics research instruction, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, showing a resilient nonenergy sector, strong customer dynamics, and gradually improving oil output.

The most current forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by strengthening domestic demand and a broadly steady worldwide backdrop. The report highlights GCC customers as a major chauffeur of the area's economic efficiency heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to fuel a surge in consumer spending throughout the Gulf.

Credit development is also anticipated to stay raised as access to financial services expands. With GCC reserve banks anticipated to follow awaited United States Federal Reserve rate cuts due to the region's dollar pegs, obtaining expenses are likely to decline, providing families and businesses even more inspiration to spend and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a mixed picture.

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This could weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as inventories tighten and global demand enhances. Qatar, on the other hand, stands out as a local outperformer, with substantial expansions in gas production and exports anticipated to raise its overall financial performance.

Saudi Arabia's 2026 budget plan expects a 6 per cent cut in capital investment as the kingdom aims to narrow its fiscal deficit by 2 portion points. However, the report notes that these cuts might not materialise totally if countercyclical costs procedures are activated to support growth. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.

Regardless of shortterm risks tied to oil prices and worldwide demand, the GCC's 2026 economic outlook is defined by strength in fundamentals: resistant consumers, robust nonenergy sectors, enhancing oil dynamics, and strategic fiscal preparation. With these factors lining up, the area is preparing for among its most well balanced durations of expansion over the last few years anchored by a clear upward trajectory in GDP growth.

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RIYADH: Gulf Cooperation Council regional economies are expected to remain resilient in 2026, driven by strong domestic demand and a broadly constant global economy, according to an analysis. In its latest report, Oxford Economics highlighted that the genuine gross domestic product of the GCC area is expected to broaden by 4.4 percent in 2026, up from the projected 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.

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 toward diversity. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to exceed their international peers.

In December, the IMF further stated that headline 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 stay elevated in the GCC region throughout 2026, as access to financial services is expected to grow and lending is predicted to be supported by additional cuts in interest rates."Owing to their currency pegs to the US dollar, GCC reserve banks are anticipated to follow the US Federal Reserve by easing financial policy further, which in turn will reduce financial obligation maintenance costs and increase disposable income and demand," stated the report.