The six GCC countries are projected to increase their total public spending to $542.1 billion in the current 2025 financial year, according to the Muscat-based GCC Statistical Centre (GCC-Stat).
The estimated rise in expenditure, compared to 2024, is seen as a crucial catalyst for economic expansion across the region. GCC-Stat highlighted that the spending is earmarked for ongoing infrastructure projects and stimulating growth in key economic sectors, aligning with the bloc’s strategic development plans.
The GCC nations — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — are expected to see government revenues remain relatively stable in 2025, bolstered by anticipated moderate to high oil prices. Total public revenues for the GCC are estimated at $487.8 billion for the current financial year.
This spending outlook is set to result in a combined budget deficit of $54.3 billion for the six countries. Given that oil revenues constitute the majority of income sources for the region, government revenues are highly sensitive to global oil price fluctuations.
GCC-Stat noted that member countries adopt a conservative approach when calculating the break-even oil price in their budget forecasts. This strategy aims to mitigate the impact of international economic shifts and volatility in global oil markets.
The report added that GCC countries intend to finance their budget deficits through a combination of drawing on reserves and utilising both domestic and foreign borrowing.
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