Comparing Legacy Models and 2026 Business Strategies

Service news and financial news, analysis, viewpoint and statistics covering the 6 Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE

ANSR July GCC PRs 50DR+

Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region predicted to outperform its 2025 performance in spite of soft oil incomes and ongoing international unpredictabilities. According to a brand-new Oxford Economics research briefing, GCC GDP growth is anticipated to rise to 4.4 per cent in 2026, up from 4 per cent in 2025, reflecting a resilient nonenergy sector, strong customer dynamics, and slowly enhancing oil output.

But the newest projections recommend that Gulf economies are now wellpositioned to restore momentum, buoyed by enhancing domestic need and a broadly steady worldwide backdrop. The report highlights GCC consumers as a significant driver of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real disposable earnings are anticipated to fuel a rise in customer costs throughout the Gulf.

Credit growth is likewise anticipated to stay raised as access to monetary services expands. With GCC main banks expected to follow anticipated United States Federal Reserve rate cuts due to the area's dollar pegs, obtaining costs are most likely to decrease, providing families and businesses even more motivation to spend and invest. While the nonoil sector continues to anchor the region's durability, the GCC's hydrocarbon outlook presents a combined picture.

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This might weigh on firsthalf development, particularly for economies more depending on oil extraction. Oxford Economics projects a rebound later on in 2026, with Opec+ members anticipated to resume raising production as inventories tighten up and worldwide need improves. Qatar, on the other hand, stands out as a local outperformer, with substantial expansions in gas production and exports anticipated to raise its general economic performance.

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

Regardless of shortterm risks connected to oil prices and global need, the GCC's 2026 economic outlook is specified by strength in principles: resilient customers, robust nonenergy sectors, improving oil characteristics, and tactical financial preparation. With these factors aligning, the region is getting ready for one of its most balanced periods of growth 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 stay resilient in 2026, driven by strong domestic need 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 region is anticipated to broaden by 4.4 percent in 2026, up from the forecasted 4 percent this year.

We expect GCC growth will increase to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development 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 total 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.

In December, the IMF even more said that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near to 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is expected to stay raised in the GCC area during 2026, as access to financial services is expected to grow and loaning is projected to be supported by further cuts in rates of interest."Owing to their currency pegs to the United States dollar, GCC reserve banks are anticipated to follow the United States Federal Reserve by relieving monetary policy further, which in turn will lower debt servicing costs and improve disposable earnings and demand," said the report.