GCC countries attract $523.4 billion in foreign investment: GCC-Stat

The data issued by the Statistical Center for the Cooperation Council for the Arab States of the Gulf (GCC- Stat) indicates that the GCC countries have witnessed a steady rise in foreign investment.

In 2023, inbound foreign direct investment (excluding intra-GCC investments) reached about $523.4 billion, representing roughly 80 percent of the total foreign direct investment stock, confirming the growing international confidence in the Gulf business environment. Foreign direct investment inflows accounted for about 5 percent of total global flows in 2023.

The volume of intra-GCC investments also increased from US$88.2 billion in 2015 to $130.3 billion in 2023, which is equivalent to 20 percent of the total foreign investment stock in the region. This is attributed to the development of infrastructure and technology, as well as the adoption of modern legislation that has enhanced the region’s attractiveness as a global investment hub.

The GCC’s external merchandise trade recorded slight growth of 1.1 percent in 2024, despite the decline in average oil prices from 82.5 dollars per barrel in 2023 to 80.5 dollars in 2024.

Non-oil exports recorded a significant increase, which reflects progress in diversifying the export base. Re-export activities also witnessed continued growth, thanks to the region’s advanced logistical hubs.

The GCC’s public revenues amounted to around $670.2 billion in 2024, marking an annual increase of 2 per cent. Public spending reached 659.3 billion dollars, reflecting the Gulf governments’ commitment to advancing fiscal consolidation and directing expenditures toward development, infrastructure, and social protection.

The data indicate an increase in the contribution of non-oil revenues to total public income, due to the implementation of indirect taxes such as value-added tax (VAT) and excise taxes, alongside improved efficiency in revenue collection through digital transformation in public financial management.

These measures contributed to containing public debt and reducing its servicing burden on government budgets. On the other hand, Gulf capital market indicators showed positive performance in 2024, with market capitalis`ation rising to around $4.2 trillion, despite global market uncertainty due to tighter monetary policies in the United States.

The positive performance was supported by improved corporate profits, lower inflation levels, and the continued flow of institutional investments into key sectors.

WAM