Amid ongoing efforts to drive economic diversification and achieve ambitious development goals, Gulf countries are entering 2025 with expanded spending plans. Governments across the GCC are balancing revenues shaped by oil markets with increased investments in infrastructure and key sectors.

According to figures released by the Statistical Centre for the Cooperation Council for the Arab States of the Gulf, government revenues across GCC countries are expected to total $487.8 billion in 2025, while expenditures are projected to reach $542.1 billion, resulting in a collective budget deficit of $54.3 billion.

The report highlights the continued dependence of GCC fiscal performance on global oil prices, with petroleum revenues forming the bulk of government income.

In response to market volatility, most member states adopt conservative assumptions for break-even oil prices in budget planning, aiming to buffer their economies against external shocks.

Despite fluctuations in the global energy market, oil prices are forecast to remain within moderate to high ranges, helping to keep revenue streams relatively stable.

On the expenditure side, GCC nations are collectively ramping up public spending in 2025, surpassing 2024 estimates. The increased outlays are largely allocated to infrastructure development and strategic sectors as part of broader national development agendas aimed at diversifying economic growth.

To cover the fiscal shortfall, governments across the region are expected to rely on a combination of reserve withdrawals and domestic and international borrowing.