Strengthening GCC-EU Economic Ties: What It Means for Investors and Businesses in Oman
MUSCAT – Trade and economic cooperation between the Gulf Cooperation Council (GCC) and the European Union (EU) saw significant growth in 2024, with total bilateral trade reaching $196.8 billion, according to a recent EU–GCC economic overview.
GCC exports to Europe amounted to $79.3 billion last year, with fuel and related products accounting for 74.3 percent of this total, underscoring the Gulf region’s pivotal role as a primary energy supplier to European markets. Other exported goods included chemicals, metals, plastics, and electrical machinery.
Imports from the EU to the GCC stood at $117.5 billion, primarily composed of machinery, transport equipment, pharmaceuticals, electronics, and various industrial goods.
European investment in the Gulf also showed strong growth. EU foreign direct investment (FDI) in GCC economies increased to $54.6 billion in 2023, up from $18.4 billion in 2011, reflecting Europe’s sustained interest in the Gulf’s markets and diversification efforts.
The report highlights priority sectors under the Joint Action Plan 2022–2027, which governs cooperation between the two regions. Key focus areas include green hydrogen, renewable energy, industrial decarbonisation, digital transformation, maritime safety, food security, and research collaboration. Notably, the EU’s Global Gateway initiative, with over EUR 300 million allocated for hydrogen and energy infrastructure, is identified as a crucial driver for future projects involving electrolysis, transport networks, and new hydrogen corridors.
Special Analysis by Omanet | Navigate Oman’s Market
The strengthened EU-GCC trade ties, with bilateral trade nearing $197 billion, underscore Oman’s strategic position as a key energy and trade hub. For businesses, this means expanding opportunities in energy exports and emerging sectors like green hydrogen and digital transformation. Smart investors should focus on the EU-backed diversification initiatives and infrastructure projects, positioning themselves at the forefront of Oman’s evolving economic landscape.
