Non-oil sector's contribution to the GCC GDP sees growth

Muscat - The gross domestic product (GDP) of the Gulf Cooperation Council (GCC) countries at current prices reached $2.143 trillion in 2023, down 2.7 percent from $2.202.7 trillion at the end of 2022.

Data released by the GCC Statistical Center showed that the value of disposable GDP (for consumption and savings after deducting taxes and other transfers) amounted to $1.989 trillion, compared to $2.515 trillion in 2022, a decrease of 3 percent.

The total value added of the non-oil sector in the GCC countries by the end of 2023, at current prices, amounted to approximately $1.513 trillion, while the value added of the oil sector amounted to $603.5 billion.

Data indicates that the non-oil sector's contribution to the Gulf's GDP at current prices rose to 71.5 percent by the end of 2023, compared to 65 percent by the end of 2022, with an annual growth rate of 6.4 percent.

Mining and quarrying activities contributed the most to the GCC economy over the past five years, averaging 28.3 percent, while manufacturing activities contributed the most to GDP within the non-oil sector, averaging 11.7 percent.

Most economic activities witnessed positive growth rates in 2023, with finance and insurance activities recording the highest growth at 11.7 percent, followed by transportation and storage at 11.6 percent, real estate activities at 8.1 percent, public administration and defense at 7.9 percent, wholesale and retail trade at 7.6 percent, and education at 5.5 percent.

Meanwhile, mining and quarrying activities, in addition to the manufacturing industry, witnessed a decline of 18.8 percent and 0.7 percent, respectively.

Regarding the components of spending on the Gulf's GDP at current prices, data from the Gulf Statistical Center indicates that the value of exports of goods and services reached approximately $1.258 trillion by the end of 2023, representing a contribution of 59.5 percent to the GDP at current prices, a decline of 7.1 percent.

Final consumption expenditure (the total amount spent by households, non-profit organizations, and the government on purchasing goods and services to directly satisfy their needs and wants, without using them to produce other goods or services) reached US$1,245.6 trillion, with an annual growth rate of 7.5 percent.

Gross capital formation (total fixed capital formation and assets) also reached US$601.8 billion, with an annual growth rate of 5.5 percent.