The economies of the Gulf Cooperation Council (GCC) continued to record positive and balanced growth in the third quarter of 2025, supported by strong expansion in non-oil activities and the ongoing shift toward diversified sources of income, according to data released by the Statistical Center for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The figures show that the combined GDP of GCC member states at current prices reached approximately USD 595.8 billion in Q3 2025, compared to USD 583.0 billion in the same quarter of 2024, reflecting annual growth of 2.2 percent.

At constant prices, which measure real economic activity by excluding the impact of price changes, GDP stood at USD 474.4 billion, registering real growth of 5.2 percent. This indicates that the region’s economic performance was driven not only by price movements, but by an actual increase in production and activity across key sectors.

On a quarterly basis, compared to the second quarter of 2025, GCC economies recorded real GDP growth of 1.6 percent, pointing to sustained economic momentum across the bloc.

A key feature of the latest data is the growing role of the non-oil sector in shaping the region’s economic performance. Non-oil activities accounted for 78 percent of nominal GDP in the third quarter of 2025, while the oil sector contributed 22 percent.

In real GDP terms, the non-oil sector represented 70.7 percent of total output, compared to 29.3 percent for the oil sector. The figures underline the continued progress of GCC economies in reducing their dependence on hydrocarbons and strengthening the contribution of services, manufacturing, construction, trade, finance, and other productive sectors.

The data also point to a broader and more diversified economic base across the Gulf. At current prices, manufacturing contributed 12.4 percent to GDP, followed by wholesale and retail trade at 9.7 percent, construction at 8.4 percent, public administration and defence at 7.5 percent, finance and insurance at 7.0 percent, and real estate activities at 5.8 percent. Other activities collectively accounted for 27.3 percent, while oil and gas extraction represented 22.0 percent.

The performance of non-oil activities was particularly strong in several key areas. Real estate activities recorded growth of 10.2 percent, while accommodation and food services grew by 8.2 percent. Wholesale and retail trade expanded by 8.0 percent, reflecting resilient consumer activity and commercial demand across the region.

Electricity, water, and gas activities grew by 7.4 percent, while other service activities increased by 7.3 percent, highlighting the rising importance of domestic demand, tourism, infrastructure development, and service-led growth in the GCC economy.

The latest GCC-Stat figures reinforce the view that the region’s economic transformation is gaining pace. While oil and gas remain important contributors to regional output, the third-quarter performance shows that non-oil sectors are increasingly becoming the main engine of growth.

This shift is closely aligned with the long-term economic diversification strategies adopted by GCC member states, which aim to expand private sector participation, develop high-value industries, attract investment, and build more resilient economies capable of withstanding fluctuations in global energy markets.

*Main image in this article is AI generated.