Muscat: Total public spending by the six GCC countries - the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain - is estimated to reach $542.1 billion in the current financial year 2025. This projection comes from data released by the Muscat-based GCC Statistical Center (GCC-Stat).
According to Emirates News Agency, most GCC countries have projected an increase in public spending in 2025 compared to their 2024 spending estimates. This increase is seen as a key driver of economic growth in the region, targeting infrastructure projects and stimulating growth in specific economic sectors, aligning with strategic development plans.
GCC-Stat anticipates that government revenues in the GCC countries will remain relatively stable, with oil prices expected to stay at moderate to high levels in 2025. The estimated total public revenues for the GCC countries are projected to be around $487.8 billion during the current financial year. Meanwhile, the combined budget deficit of the six countries is estimated at $54.3 billion.
Government revenues in the GCC countries are significantly influenced by global oil price movements, as oil revenues constitute the largest proportion of income sources for the region. The GCC countries adhere to a conservative approach in calculating the break-even oil price in their general budget estimates. This strategy aims to account for international economic fluctuations and volatility in global oil prices.
To address the budget deficits, the GCC countries plan to utilize reserves and engage in domestic and foreign borrowing.