Companies in the Gulf Cooperation Council (GCC) region will have a resilient outlook in 2026, with their credit profiles expected to remain stable despite uncertainty, S&P Global Ratings said.
The ratings agency further said that even as GCC corporates face lower prices and heightened geopolitical tensions, they are still in a “good position” to manage risks. The stability is further evidenced by the robust balance sheets of most rated entities, sufficient cash and access to funding to buffer against market shocks, and strong ties to highly rated sovereigns like Abu Dhabi, Saudi Arabia, and Qatar.
“Despite our forecast of moderately lower prices, we expect rated GCC companies’ operating performance to remain resilient in 2026. Economic growth will continue on the back of government spending, steady consumer demand, and population growth,” S&P Global Ratings said.
Apart from noting the trend of continued high levels of government spending to implement diversification projects, along with the resilience of non-oil sectors, S&P Global Ratings predicted that the region’s economic growth will remain resilient despite a potential drop in Brent oil prices to the USD 60-a-barrel mark in 2026. While geopolitical tensions remain a key risk, the credit impact will be limited.
However, severe disruptions like a temporary closure of the Strait of Hormuz or escalated tensions between the United States and Iran could hamper oil exports, apart from tightening financing conditions and pressurising corporate performance.
However, even if Tehran faces potential secondary American tariffs, the agency sees limited impact of the move throughout the Gulf region, citing the modest trade exposure of countries like the UAE and Oman to the world’s largest economy, while tariff exemptions for key commodities are also coming into play.
“Non-oil sectors now account for about 75% of GDP in the UAE and 71% in Saudi Arabia, while average inflation across the bloc is expected to hold steady at around 2% over the next two years,” the credit rating agency stated in its report titled “GCC Corporate and Infrastructure Outlook 2026: Stability Despite Uncertainty.”
As for credit appetite in the private sector, S&P Global Ratings expects demand for financing to remain strong this year.
“Several companies have accessed the market already this year, issuing USD 9.7 billion in January 2026,” the agency concluded.