How to Secure a Competitive Advantage in 2026

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

ANSR July GCC PRs 50DR+

Financial growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the area projected to exceed its 2025 efficiency regardless of muted oil incomes and ongoing global unpredictabilities. According to a new Oxford Economics research instruction, GCC GDP growth is expected to rise to 4.4 percent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and slowly enhancing oil output.

The newest forecasts recommend that Gulf economies are now wellpositioned to regain momentum, buoyed by enhancing domestic need and a broadly stable international backdrop. The report highlights GCC customers as a significant driver of the area's economic performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are anticipated to fuel a surge in customer spending throughout the Gulf.

Credit growth is also forecast to stay elevated as access to monetary services widens. With GCC reserve banks anticipated to follow anticipated US Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are most likely to decline, offering homes and companies further impetus to spend and invest. While the nonoil sector continues to anchor the area's durability, the GCC's hydrocarbon outlook presents a combined picture.

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This could weigh on firsthalf development, especially for economies more based on oil extraction. Oxford Economics predicts a rebound later on in 2026, with Opec+ members expected to resume raising production as inventories tighten and global need improves. Qatar, on the other hand, stands apart as a regional outperformer, with substantial expansions in gas production and exports anticipated to lift its general financial efficiency.

Saudi Arabia's 2026 budget anticipates a 6 percent cut in capital expense as the kingdom aims to narrow its fiscal deficit by 2 portion points. Nevertheless, the report notes that these cuts may not materialise totally if countercyclical costs steps are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement programs.

Despite shortterm threats connected to oil prices and global demand, the GCC's 2026 economic outlook is specified by strength in principles: durable customers, robust nonenergy sectors, enhancing oil dynamics, and strategic fiscal planning. With these aspects lining up, the region is getting ready for one of its most balanced durations of growth 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 anticipated to stay resistant in 2026, driven by strong domestic demand and a broadly steady international economy, according to an analysis. In its most current report, Oxford Economics highlighted that the real gross domestic item of the GCC area is anticipated to broaden 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 said that economic development in the region is set to accelerate 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 total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing progress toward diversification. According to Oxford Economics, GCC customers will be standout performers in 2026 and are anticipated to outshine their international peers.

In December, the IMF further said that headline inflation is anticipated to remain below 2 percent in Bahrain, Oman, and Qatar, close to 2 percent in the Kingdom and the UAE, and somewhat above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit growth is anticipated to remain raised in the GCC area throughout 2026, as access to monetary services is expected to grow and financing is projected to be supported by additional cuts in rate 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 further, which in turn will lower debt servicing expenses and boost non reusable income and need," said the report.