MUSCAT : The GCC nations attracted approximately US$523.4 billion in foreign direct investment (FDI) in 2023, excluding intra-GCC flows, an indicator of strengthening international trust in the region’s growth prospects. FDI inflows accounted for 5 percent of total global flows, placing the Gulf among the world’s most preferred investment destinations.

Intra-GCC investments also recorded notable expansion, rising from US$88.2 billion in 2015 to US$130.3 billion in 2023, now representing 20 percent of the region’s total foreign investment stock.

Despite softer global market sentiment and a dip in average oil prices, from US$82.5 per barrel in 2023 to US$80.5 in 2024, the GCC’s foreign merchandise trade grew by 1.1 percent in 2024. Non-oil exports, in particular, posted significant increases, reinforcing the region’s push toward economic diversification. Re-export activity also continued to climb, supported by world-class logistics hubs and expanding trade corridors.

Government finances across the Gulf remained resilient. Total public revenues reached US$670.2 billion in 2024, a 2 percent annual increase, while public spending stood at US$659.3 billion. The figures reflect ongoing efforts by Gulf governments to strengthen fiscal discipline and channel expenditure toward infrastructure, development projects, and social protection.

The contribution of non-oil revenues continued to grow as GCC states expanded indirect taxation systems, including value-added tax (VAT) and selective taxes, and enhanced digitalization efforts to improve revenue collection and financial transparency.

Meanwhile, GCC stock markets delivered strong returns in 2024. Market capitalization surged to US$4.2 trillion, defying global volatility driven by tightening U.S. monetary policy. Improved corporate earnings, easing inflation, and sustained institutional investment flows were key drivers behind the region’s positive market momentum.