GCC Weekly

This report covers the macroeconomic performance of GCC countries, highlighting a return to current account surplus in Saudi Arabia and resilient, albeit challenged, reserve positions across the region amid geopolitical tensions in the Strait of Hormuz.

Key Takeaways

• 1.Official FX reserves across the GCC remain largely resilient despite regional conflict.
• 2.Saudi Arabia returned to a current account surplus of US$4.1bn in 1Q26.
• 3.Bahrain's fiscal position deteriorated, with central bank financing of the government increasing by US$1.2bn in May.

Table of Contents

• GCC: Resilient FX reserves (almost) everywhere
• Saudi Arabia: Back to CA surplus
• Bahrain: Estimating 7% fiscal deficit in the first five months of 2026
• Hormuz and maritime trade tracker
• Data releases and forecasts
• Review of past week's data

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