GCC countries’ gross national income hits $2.143 trillion

The Gulf Cooperation Council (GCC) countries saw a slight decline in overall national income in 2023, but their non-oil economies continued to grow steadily, according to new data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat).

The region’s Gross National Income (GNI) which reflects the total income earned by citizens and companies at home and abroad—stood at US$2.143 trillion in 2023. That marks a 2.7% drop compared to US$2.202 trillion in 2022.

The disposable national income, which reflects the amount available for spending or saving after taxes and transfers, also fell by 3% to US$1.989 trillion, down from US$2.051 trillion in the previous year.

Despite the dip in national income, the non-oil sector emerged as a stronger player in the region’s economy. It added US$1.513 trillion in value at current prices, while the oil sector contributed US$603.5 billion.

As a result, the non-oil sector’s share of the GCC’s Gross Domestic Product (GDP) increased to 71.5% in 2023, up from 65% in 2022. This growth was supported by a 6.4% annual expansion in non-oil economic activities.Financial and insurance activities grew the fastest, with an 11.7% rise.

Transport and storage followed closely at 11.6%. Real estate, public administration, trade, and education all recorded solid growth between 5.5% and 8.1%. Mining and quarrying, traditionally the largest contributor to the economy over the last five years (averaging 28.3% of GDP), declined sharply by 18.8%. Manufacturing, the largest non-oil sub-sector (11.7% average share), dipped slightly by 0.7%.

GCC countries saw a decline in exports, with the total value of goods and services exported falling to US$1.259 trillion, a 7.1% decrease, representing 59.5% of the region’s GDP at current prices.

Final consumption expenditure rose 7.5% to US$1.245 trillion.

Total capital formation, which includes investment in infrastructure and assets, grew 5.5% to US$601.8 billion.

While falling oil revenues weighed on overall income levels, the continued expansion of the non-oil sector signals progress toward economic diversification across the GCC. Growth in services, finance, and trade indicate a shift away from traditional energy dependence, even as key oil-related industries showed signs of contraction.