Global energy dynamics are evolving, and with economic diversification high on the agenda, the Gulf Cooperation Council (GCC) is actively reshaping its growth model. Recent data indicates that the region is making tangible progress in reducing its dependence on oil, with non-oil sectors emerging as key drivers of expansion.

In the fourth quarter of 2024, the GCC economy grew by 1.5% year-on-year, reaching $587.8 billion, according to the GCC Statistical Center. This marked an increase from $579 billion during the same period in 2023, largely propelled by non-oil activities, which made up 77.9% of the total output. The oil sector’s share, by contrast, stood at 22.1%.

Manufacturing contributed 12.5% to the non-oil economy, followed by wholesale and retail trade at 9.9%, construction at 8.3%, and public administration and defense at 7.5%. Finance and insurance accounted for 7%, real estate 5.7%, while other sectors combined for 27%.

The center stated: “This report on the quarterly GDP estimates in the GCC countries is issued based on the data made available by the member states, with a reference of May 2025.”

This economic shift reflects national reform programs, including Saudi Arabia’s Vision 2030, the UAE’s Economic Vision 2030, Oman’s Vision 2040, and Qatar’s National Vision 2030—all designed to broaden the economic base and attract investment in tourism, logistics, technology, and finance.

Real GDP across the GCC rose by 2.4% in Q4 2024. Non-oil GDP expanded 3.7%, while oil GDP contracted by 0.9% due to voluntary OPEC+ production cuts.

Qatar led in real GDP growth at 4.5%, followed by the UAE (3.6%) and Saudi Arabia (2.8%). Inflation remained modest, averaging 2.1%, with Qatar and Oman recording the lowest rates.

The ICAEW raised its 2025 GCC growth forecast to 4.4%, while the IMF projects 3%, driven by reforms and infrastructure investment.