Introduction

Despite coordinated oil production cuts by OPEC+ aimed at stabilizing global prices, the Gulf Cooperation Council (GCC) economies are expected to maintain robust growth in 2025. According to the International Monetary Fund (IMF), non-oil sectors will play a critical role in offsetting oil revenue declines. This article explores the top five non-oil growth drivers sustaining GCC economies in the face of energy market constraints.

1. Booming Tourism and Entertainment Industries

Saudi Arabia and the UAE are rapidly transforming their tourism sectors as part of their economic diversification strategies. Saudi Arabia’s Vision 2030 and projects like NEOM are attracting billions in investment, while Dubai and Abu Dhabi continue to lead the region in global tourism appeal.

• Saudi Arabia welcomed over 27 million tourists in 2024.
• UAE saw record hotel occupancy rates driven by global events and festivals.

2. Expanding Financial Services

GCC countries are becoming financial hubs, with increased foreign direct investment (FDI) in banking, fintech, and asset management. Bahrain and the UAE have positioned themselves as fintech-friendly zones with favorable regulatory environments.

The IMF notes that financial services now contribute over 10% to the GDP of some GCC countries, helping to cushion the impact of reduced oil income.

3. Accelerated Infrastructure Projects

Massive infrastructure investments across Saudi Arabia, Qatar, and the UAE continue to stimulate job creation and domestic demand. From smart cities to public transportation networks, these projects are long-term economic catalysts.

• NEOM’s $500 billion mega-project in Saudi Arabia
• Qatar’s post-World Cup urban renewal initiatives

4. Growth in the Tech and Startup Ecosystem

GCC countries are heavily investing in digital economies. The UAE and Saudi Arabia are leading with initiatives to attract startups, build data centers, and implement smart governance.

The IMF highlights technology adoption as a key productivity enhancer in the region, signaling its long-term importance for economic stability.

5. Industrial and Manufacturing Diversification

New industrial policies in the Gulf are encouraging the growth of non-oil manufacturing sectors, such as chemicals, pharmaceuticals, and renewable energy components. This shift supports job creation and export diversification.

For example, Saudi Arabia’s National Industrial Development and Logistics Program (NIDLP) aims to make the kingdom a global logistics hub.

Conclusion

The IMF’s 2025 outlook suggests that while oil remains a vital part of GCC economies, the shift toward non-oil growth is both real and impactful. Through tourism, financial services, infrastructure, technology, and manufacturing, the Gulf is building a future that is less dependent on hydrocarbons. As these trends continue, the region’s resilience in the face of OPEC+ production cuts becomes a testament to the power of diversification.

Read more about Saudi Arabia’s tourism investments and Vision 2030 to understand one of the region’s biggest growth engines.