The GCC economy continues to grow in the third quarter of 2025

The economy of the Gulf Cooperation Council countries continued to grow, recording a positive performance during the third quarter of the year 2025, in an indicator that reflects the continued good ability of the Gulf economies to balance the role of the oil sector and enhance the contribution of non-oil activities to the gross domestic product.

According to the weekly bulletin issued by the Statistical Center for the Cooperation Council for the Arab States of the Gulf, the Gulf GDP at current (nominal) prices reached about 595 billion US dollars in the third quarter of the year 2025, achieving an annual growth of 2.2% compared to the same period in the year 2024.

The data reveal that this growth was not limited to nominal indicators only, but also extended to the gross domestic product at constant prices (real), which reached 474 billion US dollars during the third quarter of 2025, recording an annual increase of 5.2% compared to the third quarter of 2024, which reflects an actual improvement in Gulf economic activity, far from the effects of price changes alone.

The bulletin also showed that all GCC economies achieved positive growth rates in real output during the same period, which enhances the image of economic stability at the region level.

The Gulf economies continue to gradually consolidate the path of economic diversification. Although oil and gas extraction activities remain at the forefront of sectoral contributions at 22.0% of the nominal GDP in the third quarter of 2025, the contributions of the non-oil sectors were remarkable and influential. Manufacturing industries recorded 12.4%, followed by wholesale and retail trade at 9.7%, then construction at 8.4%, in addition to public administration and defense at 7.5%, financial and insurance activities at 7.0%, and real estate activities at 5.8%, while other activities combined accounted for 27.3%, a combination that clearly reflects that the production base in the GCC countries has become more broad and less dependent on one sector, despite the continued pivotal importance of oil and gas.

The most important thing that these data reveal is that economic diversification in the Gulf countries is no longer just a declared strategic goal, but has become tangible in the structure of the gross domestic product. The presence of large contributions from the manufacturing industry, trade, construction, financial and real estate services indicates clear progress in building alternative and supportive growth engines for the oil sector. At the same time, the continuation of oil and gas as a major component at 22% demonstrates that the ongoing transformation is a gradual and balanced transformation, based on maximizing the return from traditional resources in parallel with expanding the base of the non-oil economy.

Taken together, these numbers present a positive picture of the Gulf economy in the third quarter of 2025, characterized by continued growth, strong real expansion, and increased participation of non-oil sectors in the economic mix. They also reinforce the view that economic diversification in the Gulf Cooperation Council countries is moving forward at a measured but tangible pace.