GCC Economies Experience Growth Driven by Non-Oil Sector

May 10, 2026

76 min

May 10, 2026 07:31

Non-oil sector drives balanced growth in GCC economies: GCC-Stat

## Economic Growth in the GCC

The economies of the Gulf Cooperation Council (GCC) countries have shown balanced growth, largely driven by the non-oil sector, according to recent data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf. In the third quarter of 2025, the GCC's nominal GDP reached approximately $595.8 billion, marking a 2.2% increase from the same period in 2024.

## Real GDP Expansion

Real GDP in the GCC rose by 5.2%, reaching $474.4 billion. This growth indicates a genuine expansion in economic activity, not just price increases. The region also saw a 1.6% quarterly growth compared to the previous quarter, reflecting ongoing economic momentum.

## Shift Towards Non-Oil Economy

The non-oil sector has become a significant contributor to the GCC's economic landscape, accounting for 78% of nominal GDP and 70.7% of real GDP. This shift underscores the success of diversification policies aimed at reducing reliance on oil.

## Sector Contributions

Manufacturing contributed 12.4% to the economy, while wholesale and retail trade accounted for 9.7%. Other notable sectors include construction at 8.4%, public administration and defense at 7.5%, and financial and insurance activities at 7.0%. The oil and gas sector's contribution stood at 22%.

## Growth in Non-Oil Activities

Non-oil activities have recorded robust growth rates, with real estate activities growing by 10.2%, accommodation and food services by 8.2%, and wholesale and retail trade by 8.0%. These figures highlight the vitality of the service economy and the increasing domestic and tourism demand in the region.

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