Moody’s: Stable Outlook and Expected Growth for GCC Companies in 2026 Despite Global Challenges

TDT | Manama

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Moody’s Investors Service projected a stable outlook and continued growth in the performance of GCC companies in 2026, supported by lower interest rates, rising consumer spending, and expanded public investment. These factors are expected to strengthen the financial position of Gulf companies and enhance their ability to grow and invest, despite uneven global demand and ongoing geopolitical tensions.

The agency noted that telecommunications companies in the GCC will benefit from government initiatives aimed at accelerating digital transformation, further boosting growth away from traditional oil-linked activities.

In the real estate sector, Moody’s expects developers in the region to continue operating in a stable environment next year, supported by demographic growth and rising demand for housing units. However, the agency cautioned that the market may experience a “moderate correction” in 2026 due to a possible increase in supply.

Moody’s also highlighted that national oil companies in the Gulf remain among the strongest financially worldwide, benefiting from low production costs and long-term strategies that enable them to absorb fluctuations in oil prices.

The agency warned of several risks that could weigh on economic expectations, including regional geopolitical tensions, global volatility in demand for goods and energy, and exposure to customs tariffs affecting certain trade-related sectors.

Moody’s concluded that these factors could create varying impacts across companies, particularly those with supply chains closely tied to global markets.