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Oil sector to drive GCC growth to 4.5% in 2025
The growth is also driven by new gas field developments and a strong rebound in transportation, tourism, and infrastructure.
The economies of the six GCC nations are projected to grow at a faster pace in 2025, reaching 4.5%, according to a report by the GCC Statistical Centre (GCC-Stat). This follows an expected 3.7% growth in 2024, with growth stabilizing at 3.5% in 2026.
The report credits this upward trajectory to increased oil production, as the OPEC+ alliance gradually relaxes production quotas in late 2024. Additionally, developing new gas fields and a robust recovery in critical sectors such as transportation, tourism, and infrastructure are expected to drive growth.
Non-oil sectors are also set to play a significant role, with expansion projected at 4.5% in 2024, followed by growth rates of 3.3% in 2025 and 4.1% in 2026. This momentum is fueled by the rapid growth of private sector activities in tourism, retail, transportation, and storage, as well as the execution of major infrastructure projects across the region.
Economic diversification strategies drive growth across the GCC, with advancements expected in renewable energy, technology, innovation, and manufacturing.
Inflation in the region is projected at 2.4% in 2024, 2.6% in 2025, and 2.1% in 2026. However, rising raw material costs, increased public spending, higher consumption rates, and wage growth due to improved employment and household incomes pose challenges.
Global monetary policies, particularly in the US, EU, UK, and Japan, aimed at curbing inflation through interest rate adjustments, are expected to help stabilize inflation within the GCC.
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