Al-Badawi: Non-oil sector contribution to GCC GDP reaches 79%

Bahrain, Manama – Sunday, 20 April 2025: Secretary-General of the Gulf Cooperation Council (GCC) Jasem Al-Budaiwi stated in Manama today that accelerating the paths to economic unity and completing the customs union and the Common Market of the Gulf States are pillars for enhancing the competitiveness of the GCC economies, strengthening their capacity to face global changes, and achieving sustainable development.

This came during Al-Budaiwi’s speech at the 10th meeting of the Standing Ministerial Preparatory Committee of the Economic and Development Affairs Authority of the GCC states, held under the chairmanship of Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa, with the attendance of the members of the Standing Ministerial Preparatory Committee of the Economic and Development Affairs Authority of the GCC states, including the Minister of State for Economic Affairs and Investment and Acting Minister of Commerce and Industry, Abdulaziz Al-Marzouq.

Al-Budaiwi said that the Standing Ministerial Preparatory Committee of the Economic and Development Affairs Authority of the GCC states is gaining increasing importance in supporting and monitoring these projects through policy-making, initiatives, and practical projects, which achieve tangible impact on the process of economic integration among the GCC states.

The Secretary-General added that the meeting is held amid rapid economic and geopolitical changes, which underscore the importance of enhancing coordination and integration among the GCC states, raising their joint capacities and integration, anticipating changes and their repercussions, and dealing with them efficiently and flexibly to mitigate their impact on the GCC economies and enhance their readiness, resilience, and ability to adapt and respond.

He also pointed out the importance of leveraging the effects of these developments to support growth and economic diversification, enhance competitiveness, support localization programs, and achieve sustainable development, especially since the leaders of the GCC states emphasized in their consultative meeting held in Jeddah on 28 April 2026 the importance of accelerating the attainment of the desired economic integration, including completing the requirements for reaching the final stage of the customs union, implementing the targets of the Common Market of the Gulf States on the ground, and accelerating the implementation of the railway project.

During his speech, he referred to several economic indicators that confirm the resilience of the GCC economies and the progress made in the paths of diversification and economic integration, according to a number of statistics issued by the Gulf Cooperation Council Statistical Center for the year 2025. The GCC states’ gross domestic product (GDP) at current prices reached approximately $2.4 trillion, making the GCC collectively the ninth-largest economy in the world.

He said that, at the same time, the non-oil sector’s contribution reached about 79 percent of the GDP, reflecting progress in diversifying the economic base. The volume of intra-GCC trade, measured by the value of intra-GCC exports, exceeded $177 billion, recording a growth of 125 percent compared to 2007, which reflects the significant role of the Common Market of the Gulf States.

He noted that the stock of intra-GCC investments exceeded $171 billion, representing more than 21 percent of the total stock of foreign direct investment inflows to the GCC states.