The Gulf Cooperation Council is gearing up for a faster pace of growth as its shift beyond oil gains traction. New projections from GCC-Stat show the region’s economy could expand 4.3 percent by 2027, powered by rising activity in tourism, manufacturing, energy, logistics, and tech.
The latest figures show steady progress. The GCC grew 1.9 percent in 2024, and almost all that momentum came from non-oil industries, which climbed 4.4 percent. Transport and storage posted some of the biggest gains, followed by agriculture, fishing, and accommodation — a sign of stronger demand for travel and food-related investment. Construction, trade, and financial services also delivered healthy growth, while oil output fell under OPEC+ limits.
Looking ahead, the World Bank expects the region to grow 3.2 percent in 2025, with Qatar benefiting from larger LNG capacity and the UAE forecast to see nearly five percent growth in non-oil sectors. Saudi Arabia is expected to lift crude production to about 10.4 million barrels per day by 2027, helping balance the broader expansion.
Private sector fuels momentum
Non-oil value added rose to $1.29 trillion in 2024, and forecasts suggest a temporary cooldown in 2025 before growth speeds up again toward 2027 as private-sector investment deepens. In early 2025, the region’s GDP grew three percent to roughly $588 billion, with non-oil sectors making up more than 70 percent of all economic activity.
Inflation stayed low at 1.7 percent in 2024, thanks to subsidies, stable currencies, and better supply chains. Public revenues reached $659 billion, close to total spending, leaving only a small deficit. Governments continued to lean on tax reforms, digital systems, and fiscal discipline to strengthen finances.
GCC markets and banks held up well. Dubai led regional equities with standout gains, and more than 50 IPOs hit local exchanges. Bank lending increased nearly 10 percent, foreign assets grew, and foreign investment continued trending higher — a sign that confidence in the region’s long-term transition is building.
