GCC GDP set to grow by 3.7% in 2024, driven by oil and non-oil sectors

Muscat : The report attributes the optimistic outlook to increased oil production, bolstered by OPEC Plus’ gradual easing of production quotas since mid-2024 and the completion of new gas fields. Additionally, recovery in transportation, tourism, and infrastructure projects supported by expansionary public finance policies is expected to drive growth.

Non-oil sector performance is particularly promising, with an anticipated growth of 4.5% in 2024 and steady gains in subsequent years, driven by vibrant private sector activity in tourism, transportation, retail, and storage. Infrastructure development remains a critical growth catalyst, stimulating related sectors and fostering private sector expansion.
The GCC’s diversification strategies, emphasized through investments in renewable energy, technology, innovation, and manufacturing industries, are set to transform the economic landscape by 2026.
In 2023, the GCC’s GDP at constant prices reached $1.69 trillion, a modest 0.5% growth from 2022, while non-oil sectors expanded by 3.3%. The region’s GDP contributes 2% of the global total and over 60% of the Arab world’s economic output.

Inflation rates in the GCC are expected to stabilize at 2.4% in 2024, 2.6% in 2025, and 2.1% in 2026, despite risks such as rising consumer prices and raw material costs. Increased employment, higher wages, and improved household income are also likely to influence consumption rates and public spending.