The official data reported that the Gulf Cooperation Council the economic growth will reach a faster 4.3 percent by 2027 due to growing non-oil sectors and a balance of 1.9 percent up to the gross domestic product in 2024.
Data from the GCC Statistical Centre stated that the 2024 growth was supported by non-oil segments with the highest growth of 4.4 percent, which represents the continuity of diversifying the economy and executing long-term transformation strategies throughout the region.
The World Bank’s Gulf Economic Update, which was released in June 2025, estimated GCC real GDP to expand by 3.2 percent in 2025, driven by oil output growth of 2.8 percent and non-oil activity growth of 3.2 percent, with an average growth of about 4.6 percent in 2026 and 2027.
According to the report, the resumed oil production and strong non-oil performance would benefit individual countries, as the oil output of Saudi Arabia is estimated to be 10.4 million barrels per day by 2027.
It further added that the UAE’s non-oil sector will grow 4.9 per cent in 2025, and Qatar will make huge profits out of its growing liquefied natural gas capacity.
The report noted the increasing contribution of the non-oil sectors and the current trend of diversification momentum of the GCC, despite the uncertainties in the world.
According to a recent GCC-Stat report, titled “Economic Performance Outlook 2024 – Enabling Fiscal Sustainability and Enhancing Non-Oil Growth,” cited that the region had gained a balanced performance in 2024 despite global challenges.
It provided an analytic overview of the macroeconomic indicators in general, including growth, inflation, public finance, debt levels, fiscal sustainability, financial markets, monetary and banking policy, foreign direct investment, trade, and labor market dynamics across the Gulf.
Initial data of GCCS-tat indicated that in 2024, non-oil growth was highest in transport and storage, led by non-oil expansion with 6.5 percent, followed by agriculture and fishing with 6.4 percent and accommodation services with 6.3 percent, indicating the increasing tourism flows and increased investment in these sectors.
Construction, trade, and financial services grew between 5 and 5.5 percent, underpinned by large-scale projects and more robust domestic demand.
However, the oil industry was hit by a 3.8 percent decline because of OPEC+ production cut agreements.
The non-oil value added increased to $1.29 trillion in 2024, compared to $1.24 trillion in 2023, which shows significant physical diversification gains.
Gradually, GCC-Stat predicts non-oil growth to moderate at 3.5 percent in 2025, and then pick up to 5.2 percent in 2027 with the support of tourism, logistics, manufacturing, and renewable energy ventures.
With ongoing reforms and digital transformation efforts, the private sector is likely to be at the forefront.
GCC economies in the first quarter of 2025 have increased by 3 percent, with the total GDP of $588.1 billion, which is compared to the previous year when it stood at $570.9 billion.
Non-oil GDP was 73.2 percent of total GDP, compared to 70.6 percent at the end of 2024, and this indicates that the region still has progress to make on the diversification front.
Saudi Arabia anticipates a real GDP growth of 4.6 percent in 2026, backed by an estimated 5 percent non-oil activities.
The UAE was experiencing growth of 3.9 percent in the first quarter, which was driven by trade, finance, manufacturing, construction, and real estate.
This data supports the robust growth trend of the GCC due to global uncertainty and is consistent with IMF projections of 3.2 percent growth in 2025 and 4.5 percent in 2026.
