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

GCC economies recorded positive and balanced performance in the third quarter of 2025, with the non-oil sector leading growth alongside a continued structural shift toward diversified income sources, according to data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf, cited by WAM news agency.

Nominal GDP reached approximately US$595.8 billion, up from US$583.0 billion in the same quarter of 2024, an annual growth rate of 2.2 percent.

What is driving GCC economic growth in Q3 2025?

Real GDP growth of 5.2 percent in Q3 2025 signals an actual expansion in economic activity, not just price increases. The non-oil sector accounted for 78 percent of nominal GDP and 70.7 percent of real GDP, reflecting the success of diversification policies across GCC member states.

Quarterly real growth of 1.6 percent, compared to Q2 2025, points to continued momentum.

How dominant is the non-oil sector in the GCC economy?

The non-oil sector's 78 percent share of nominal GDP, against 22 percent for oil and gas extraction, marks a clear structural shift in the GCC economy. At the real GDP level, non-oil activities contributed 70.7 percent compared to 29.3 percent for the oil sector.

This reduced relative dependence on hydrocarbons reflects years of deliberate economic diversification policy across the Gulf states.

The broadening of the production base is visible in sector-level contributions at current prices. Manufacturing led non-oil activities at 12.4 percent of GDP, followed by wholesale and retail trade at 9.7 percent, construction at 8.4 percent, public administration and defence at 7.5 percent, financial and insurance activities at 7.0 percent and real estate at 5.8 percent. Other activities collectively accounted for 27.3 percent.

Which non-oil sectors recorded the strongest growth rates?

Non-oil activities posted strong real growth across multiple sectors in Q3 2025. Real estate led with growth of 10.2 percent, followed by accommodation and food services at 8.2 percent, wholesale and retail trade at 8.0 percent, electricity, water and gas at 7.4 percent and other services at 7.3 percent.

These figures reflect growing domestic consumption and rising tourism demand across the region.