Companies across the Gulf Cooperation Council (GCC) are expected to benefit from a stable and supportive operating environment in 2026, driven by solid demand, lower interest rates and continued public investment, Moody’s Ratings said in its latest regional credit outlook.
The agency’s 2026 outlook for non-financial corporates in Europe, the Middle East and Africa is broadly stable, but Moody’s highlighted notably stronger conditions for firms in the GCC and parts of wider MENA compared with major European markets.
The report said companies in the Gulf are “supported by solid demand, declining interest rates that support consumption, favourable economic policies and ongoing investments in infrastructure and technology-based projects.”
Moody’s sees steady GCC growth
Moody’s noted that telecom operators in the GCC are benefiting from non-oil economic growth and government strategies to accelerate digital transformation. The agency said that although international merger and acquisition activity has slowed after several large transactions between 2023 and 2025, sector fundamentals remain resilient.
Real estate developers in the region are also expected to operate in stable conditions next year. Moody’s pointed to strong demand fundamentals, including population growth and shrinking household size, which continue to support residential activity. However, it warned that a “moderate price correction” is likely to begin in 2026 because of rising supply.
Utilities across the Gulf continue to enjoy “stable and transparent regulatory frameworks,” the report said, which supports predictable earnings and investment planning. Moody’s cautioned that some utilities face pressure on credit metrics due to significant capital expenditure required for grid upgrades and renewable energy expansion.
The region’s national oil companies remain among the most financially resilient globally. According to Moody’s, GCC producers benefit from low-cost production bases, strong balance sheets and long-term strategies that help them manage periods of weaker oil prices. The agency added that companies are expected to prioritise high-return upstream projects while limiting capital spending on renewables.
In North Africa and wider MENA, Moody’s said companies in markets such as Egypt, Morocco and Tunisia continue to contend with inflation and currency pressures, although structural reforms are supporting medium-term operating conditions.
In Sub-Saharan Africa, it reported that macroeconomic recovery and reform agendas are improving prospects for telecoms, real estate and construction-related industries.
Moody’s said the overall regional picture remains stable but that geopolitical tensions, tariff exposure and shifts in global demand remain the key risks to the outlook for 2026.
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