Projections indicate that in the fiscal year 2025, total public expenditure by the six countries of the Gulf Cooperation Council (GCC) is anticipated to reach $542.1 billion, as per the latest data from the GCC Statistical Center.
The member nations — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — have mostly planned for higher public spending in comparison to 2024. This increase is directed towards finalizing infrastructure projects and fostering growth in specific economic sectors in alignment with their long-term development goals.
The GCC Statistical Center data suggests that government revenues in these nations are expected to stay relatively consistent in 2025, largely supported by predictions of global oil prices remaining moderate to high throughout the year.
The total projected public revenues for the GCC countries stand at $487.8 billion, leading to an overall budget deficit of $54.3 billion for the year.
Oil Revenues: Core Source of Government Funding in the GCC
Oil revenues continue to be the primary source of income for governments in the region, rendering their fiscal positions highly vulnerable to changes in global oil prices.
To manage this risk, the GCC countries employ a cautious approach when determining the break-even oil prices in their budget planning. This strategy is intended to cushion against the uncertainties in the global energy markets.
To address the fiscal shortfall, GCC nations plan to utilize a combination of their financial reserves along with both local and international borrowing methods.