RIYADH: Gulf Cooperation Council corporates are expected to see largely stable conditions in 2026 as government-led investment supports earnings, offsetting pressure from lower oil prices and tighter funding conditions, according to a new analysis.
In a report published this week, Fitch Ratings said sustained public-sector capital expenditure — particularly in infrastructure and energy — will continue to underpin regional corporate performance, even as lower oil-price assumptions are likely to constrain public- and private-sector budgets.
This comes as GCC economies are forecast to grow 4.4 percent in 2026 and 4.6 percent in 2027, driven by stronger non-hydrocarbon activity and rising hydrocarbon output, the World Bank said.
In its Global Economic Prospects report released earlier this month, the World Bank said non-oil sectors, which account for more than 60 percent of GCC GDP, are expected to be supported by large-scale investment across the region.
Samer Haydar, Fitch’s head of GCC corporates, said: “We expect sustained public-sector capex to support steady earnings for GCC Corporates in 2026, especially in infrastructure and energy, even as lower oil price assumptions constrain fiscal flexibility.”
