The six Gulf Cooperation Council (GCC) countries are set to boost public spending to an estimated $542.1 billion in 2025, signaling a continued focus on infrastructure development and economic growth, according to the GCC Statistical Center (GCC-Stat).
The UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain have all projected increases in their public expenditure compared to 2024, aiming to accelerate key projects aligned with their strategic development plans. This rise in spending is viewed as a major driver for regional economic expansion.
Despite the spending surge, government revenues across the GCC are expected to remain stable, buoyed by moderate to high oil prices. GCC-Stat forecasts total public revenues at approximately $487.8 billion for the year, with oil revenues continuing to form the backbone of state income.
However, the region faces a combined budget deficit estimated at $54.3 billion in 2025. To cover this gap, GCC countries intend to rely on reserves alongside domestic and international borrowing.
GCC governments adopt a cautious stance in setting break-even oil prices in their budgets, accounting for global economic uncertainties and the volatility of oil markets. This conservative approach helps manage fiscal risks while supporting ongoing development goals.
As the GCC balances increased spending with stable revenues and prudent financial management, the outlook for the region’s economic growth remains cautiously optimistic through 2025.
News Source: Emirates News Agency
