GCC Non-Oil Sector Growth: What the $1.513 Trillion Addition Means for Business Opportunities
The Gulf Cooperation Council (GCC) states reported a gross domestic product (GDP) of $2.143 trillion at current prices for 2023, representing a 2.7% decrease from $2.203 trillion in 2022, according to the GCC Statistical Centre.
Gross disposable income, which indicates the amount available for consumption and savings after taxes and transfers, declined by 3%, hitting $1.989 trillion compared to $2.052 trillion the previous year.
The non-oil sector contributed $1.513 trillion, while the oil sector added $603.5 billion to the economy. Consequently, the share of the non-oil sector in the overall GCC economy increased to 71.5% in 2023, up from 65% in 2022, driven by a robust annual growth rate of 6.4%.
Over the past five years, mining and quarrying have emerged as the largest contributor to the GCC economy, averaging 28.3%, with manufacturing comprising the largest segment within the non-oil sector at 11.7% of GDP.
In 2023, most sectors experienced positive growth. Financial and insurance activities led the way with an 11.7% increase, followed closely by transport and storage at 11.6%. Other sectors showing growth included real estate at 8.1%, public administration and defense at 7.9%, wholesale and retail trade at 7.6%, and education at 5.5%. However, mining and quarrying saw a significant decline of 18.8%, while manufacturing decreased slightly by 0.7%.
Exports of goods and services totaled $1.259 trillion, contributing 59.5% to GDP but declined by 7.1% from the previous year. Conversely, final consumption expenditure—encompassing household, non-profit, and government spending on goods and services—rose by 7.5%, reaching $1.246 trillion. Gross capital formation, which reflects total investment in fixed assets, reached $601.8 billion, representing a growth of 5.5% over the year.
Special Analysis by Omanet | Navigate Oman’s Market
The decline in GDP across the GCC may signal caution for businesses in Oman, particularly those reliant on oil, as the non-oil sector’s growth represents a strategic opportunity for diversification. Investors should focus on the fast-growing non-oil sectors like finance, transport, and real estate, which are thriving despite broader economic contractions, while being wary of potential risks in manufacturing and mining. Smart entrepreneurs should leverage the rising consumer spending and capital formation trends, aligning their strategies with the shifting economic landscape.
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