How to Secure a Competitive Edge in 2026

Business news and monetary news, analysis, viewpoint and stats covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic development throughout the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outshine its 2025 performance despite muted oil profits and continuous international uncertainties. According to a new Oxford Economics research study briefing, GCC GDP growth is expected to increase to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong consumer dynamics, and gradually enhancing oil output.

The latest forecasts suggest that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic need and a broadly stable international background. The report highlights GCC consumers as a significant chauffeur of the area's financial efficiency heading into next year. Low inflation, robust labour markets, and growing real disposable incomes are anticipated to sustain a rise in consumer costs throughout the Gulf.

Credit growth is likewise forecast to remain raised as access to monetary services broadens. With GCC main banks anticipated to follow expected US Federal Reserve rate cuts due to the area's dollar pegs, borrowing expenses are likely to decline, offering families and companies even more incentive to invest and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a blended image.

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This might weigh on firsthalf development, especially for economies more dependent on oil extraction. Nevertheless, Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten and global need improves. Qatar, on the other hand, stands out as a local outperformer, with substantial growths in gas production and exports anticipated to raise its total financial efficiency.

Saudi Arabia's 2026 budget anticipates a 6 per cent cut in capital expenditure as the kingdom aims to narrow its fiscal deficit by 2 percentage points. The report notes that these cuts might not materialise fully if countercyclical spending procedures are triggered to support development. By contrast, more diversified economies such as the UAE and Qatar are anticipated to continue advancing their advancement programs.

Despite shortterm threats tied to oil prices and worldwide demand, the GCC's 2026 financial outlook is specified by strength in basics: resistant customers, robust nonenergy sectors, enhancing oil characteristics, and tactical financial preparation. With these factors aligning, the region is getting ready for one of its most balanced periods of growth in current years anchored by a clear upward trajectory in GDP growth.

How to Secure a Competitive Edge in 2026

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

United States trade policy under President Donald Trump has actually had no noteworthy effect on local growth, and non-energy sectors have sustained their robust momentum," stated Oxford Economics. It included: "On the other hand, oil production has slowly increased, offering an increase to the region's economies. We anticipate GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic growth in the area is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.

ANSR July GCC PRs 50DR+

Non-oil activities represented 73.2 percent of overall GDP, up from 70.6 percent at the end of 2024, highlighting the region's continued development towards diversification. According to Oxford Economics, GCC consumers will be standout entertainers in 2026 and are anticipated to surpass their worldwide peers. Oxford Economics said that low inflation has actually assisted protect growth in real non reusable income, which has actually also been supported by strong demand and very low joblessness rates."We do not envision any let-up, as governments continue to push for higher foreign direct investment in their push to diversify their economies away from oil and gas," the report added.

In December, the IMF even more stated that headline inflation is expected to remain 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 area throughout 2026, as access to financial services is anticipated to grow and financing is forecasted to be supported by more cuts in interest rates."Owing to their currency pegs to the United States dollar, GCC central banks are expected to follow the US Federal Reserve by relieving financial policy further, which in turn will reduce debt maintenance expenses and boost disposable income and need," stated the report.