Total public spending by Gulf Cooperation Council (GCC) countries is projected to reach $542.1 billion in 2025, up from previous years, according to data released by the Muscat-based Gulf Cooperation Council (GCC) Statistical Centre.
The six-member states—UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain—have increased spending estimates as part of their strategic development plans aimed at expanding infrastructure and promoting sector-specific growth. The combined budgeted outlay reflects a continued commitment to public investment despite fluctuations in hydrocarbon revenue.
Total public revenues for the group are expected to reach $487.8 billion, resulting in a projected combined deficit of $54.3 billion for the year. Governments are expected to cover the shortfall using their financial reserves and issuing domestic and international debt.
Oil prices, the region’s primary revenue source, are forecast to remain at moderate to high levels in 2025. However, GCC-Stat noted that most countries continue to use conservative oil price assumptions in their fiscal planning to manage exposure to global market volatility.
Saudi Arabia and the UAE are leading the increase in expenditure, with large allocations going toward megaprojects, housing, transportation, and industrial development. Qatar and Oman have also outlined higher capital spending in their 2025 budgets, while Bahrain and Kuwait are maintaining current levels with targeted increases in social and infrastructure programmes.
GCC sovereigns have recently ramped up local and foreign borrowing to finance fiscal gaps, including sukuk and bond issuances. According to IMF data, the region’s public debt-to-GDP ratio remains manageable due to accumulated reserves and buffers from its sovereign wealth funds.
Oil accounted for more than 70% of total GCC revenues in 2024, and although diversification efforts are underway, public finances remain highly sensitive to Brent price fluctuations. The IMF’s April 2025 World Economic Outlook estimates that average oil prices will hover between $82 and $85 per barrel throughout the year.
