GCC outperforms global average in 2026 economic freedom index

Gulf Cooperation Council (GCC) countries outperformed the global average in the 2026 Economic Freedom Index, reflecting stronger economic openness and an improved business environment, data from the GCC Statistical Centre (GCC-Stat) showed.

The GCC average Economic Freedom Index reached 66.9 points, surpassing the global average of 59.9 points by a margin of nearly 7 points, indicating a higher level of economic freedom across the region.

All GCC countries recorded either improvement or stability in their scores between 2025 and 2026, with limited variation among member states, demonstrating the continuity of economic reforms and growth-supporting policies.

At the Arab level, GCC countries ranked among the top seven, reinforcing their position as the region’s most open economies.

An increase in the index value (which ranges from 0 to 100) signifies a freer and more open economy, as countries are classified into categories starting from “Repressed” to “Free”. The index relies on four main pillars: Rule of Law, Government Size, Regulatory Efficiency, and Market Openness. It is calculated through 12 sub-indicators and covers 184 countries worldwide.

The improvement in the Economic Freedom Index also contributes to attracting foreign investments, stimulating economic growth, creating job opportunities, enhancing competitiveness, and improving individual well-being, as well as reducing corruption and stabilising financial markets.

This progress reflects the success of the economic policies and structural reforms aimed at fostering a more attractive investment environment.

The Gulf Cooperation Council (GCC) economy expanded in the third quarter of 2025, reflecting its sustained ability to balance the role of the oil sector while enhancing the contribution of non-oil activities to gross domestic product (GDP), according to data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

Nominal GDP across GCC countries reached about $595 billion in Q3 2025, marking annual growth of 2.2 per cent compared with the same period in 2024, the centre said in its weekly bulletin.

This growth was not limited to nominal indicators, but also extended to real GDP, which reached $474 billion in Q3 2025, recording an annual increase of 5.2 per cent compared to Q3 2024. This reflects a genuine improvement in GCC economic activity, beyond the effects of price changes alone. The bulletin also indicated that all GCC economies recorded positive real GDP growth rates during the same period, reinforcing the overall picture of economic stability across the region.

GCC economies continue to steadily consolidate their economic diversification path. While oil and gas extraction activities remained the largest contributor, accounting for 22.0 per cent of total nominal GDP in Q3 2025, non-oil sectors made notable and impactful contributions.

Manufacturing accounted for 12.4 per cent, followed by wholesale and retail trade at 9.7 per cent, construction at 8.4 per cent, public administration and defence at 7.5 per cent, financial and insurance activities at 7.0 per cent, and real estate activities at 5.8 per cent, while other activities collectively represented 27.3 per cent.

The data highlighted that economic diversification in GCC countries is no longer merely a stated strategic objective, but is increasingly being translated into the actual structure of GDP. The strong contributions from manufacturing, trade, construction, financial services, and real estate indicate tangible progress in building alternative and complementary growth drivers alongside the oil sector. At the same time, the continued prominence of oil and gas at 22 per cent underscores that the ongoing transformation is gradual and balanced, aiming to maximise returns from traditional resources while expanding the non-oil economic base.

Taken together, these figures present a positive outlook for the GCC economy in Q3 2025, characterised by sustained growth, strong real expansion, and increasing participation of non-oil sectors in the economic mix. The latest data further reinforces the view that economic diversification across GCC countries is progressing at a measured yet tangible pace.

The Gulf Cooperation Council (GCC) countries recorded strong performance in the agriculture, livestock and fisheries sectors during 2024, reflecting the growing role of these sectors in supporting food security and advancing economic diversification across the GCC, despite the environmental and natural challenges facing the region, particularly limited arable land and scarce water resources.

Data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf showed that the contribution of the agriculture and fishing sector to gross domestic product at current prices reached around $40 billion in 2024, registering a 5.1 per cent increase compared with 2023, while the sector’s share of the GCC’s gross domestic product remained stable at 1.7 per cent.