GCC Non-Oil GDP Growth of 4.4% in 2024: Implications for Investors and Entrepreneurs in Oman
MUSCAT: According to preliminary data from the GCC Statistical Centre, the non-oil GDP of Gulf Cooperation Council countries grew by 4.4% in 2024, contributing to a 1.9% increase in overall real GDP.
The total value of non-oil activities rose from $1,237.2 billion in 2023 to $1,292.1 billion in 2024. The report emphasizes that this growth underscores the increasing role of non-oil activities in the region’s economy and the significant advances made in economic diversification efforts by member states.
Among non-oil sectors, transport and storage experienced the highest growth, increasing by 6.5%, followed closely by agriculture and fishing at 6.4%. Accommodation services also saw a healthy rise of 6.3%, attributed to boosted tourism and ongoing investments in the sector.
Construction, trade, and financial services recorded growth rates between 5.0% and 5.5%, driven by major development projects and heightened domestic demand. In contrast, the oil sector’s value-added declined by 3.8%, primarily due to ongoing production cuts mandated by OPEC+.
Looking to the future, the GCC Statistical Centre projects non-oil growth to moderate to 3.5% in 2025, before picking up to 4.2% in 2026 and 5.2% in 2027, fueled by advancements in tourism, logistics, manufacturing, and renewable energy initiatives.
The report highlights the expected pivotal role of the private sector, noting ongoing reforms and rapid digital transformation. It concludes that sustained diversification strategies are essential for long-term economic growth and reducing dependence on hydrocarbon resources.
Special Analysis by Omanet | Navigate Oman’s Market
The recent 4.4% expansion of non-oil GDP in the GCC signals a pivotal shift for businesses in Oman, showcasing promising opportunities in tourism, logistics, and renewable energy. However, the decline in the oil sector underscores a risk for those still heavily reliant on hydrocarbons. Savvy investors and entrepreneurs should position themselves strategically in diversified sectors, leveraging the momentum of ongoing economic reforms and digital transformation for sustainable growth.
