Latest news with #GCCStat
Zawya
4 days ago
- Business
- Zawya
GCC boosts spending in 2025
Gulf oil producers expect their budgets to recorded a combined fiscal deficit of around $54.2 billion in 2025 despite their conservative oil price forecasts. The six Gulf Cooperation Council (GCC) countries, which created their economic, political and defense alliance in 1981, projected spending at around $542 billion and revenues at $487.8 billion this year, the GCC statistics centre (GCCStat) said. 'Oil earnings still account for the bulk of the GCC's revenues…the six members normally follow a conservative approach in calculating the breakeven price in their budgets to shun price fluctuations in the global market,' it said in a report this week. The report noted that the 2025 budgeted spending was higher than in 2024 due to a rise in project and current expenditures, adding that public expenditure has remained the wheel of economic growth in the GCC states of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the UAE. Most of the GCC members have tailored their budgets over the past couple of years on a $70 a barrel price and varied crude production levels. The report did not provide a breakdown for members' budgets but Saudi Arabia has projected a fiscal deficit of around $27 billion, nearly half the total GCC shortfall. Kuwait expects a deficit of around $20 billion, the second largest in the GCC, and will likely borrow this year to fund the shortfall after a decision in March to revive its debt law following an eight-year hiatus. Most members in the GCC, which controls over a third of the world's proven oil resources, have resorted to borrowing to fund the shortfall despite the massive overseas assets controlled by their sovereign wealth funds. This has led to a sharp increase in the public debt in some members. 'The deficit and the debt in the GCC has remained under control because they possess a comfortable fiscal space with the accumulation of huge assets abroad,' said Mohammed Al-Asumi, a GCC economic adviser. (Reporting by Nadim Kawach; Editing by Anoop Menon) (
Zawya
4 days ago
- Business
- Zawya
GCC's total public spending for 2025 set to hit $542bln
The total public spending by the six GCC countries – the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain – is estimated to reach $542.1 billion in the current financial year 2025, according to data released by the Muscat-based GCC Statistical Center (GCC-Stat). Most GCC countries have projected an increase in public spending in 2025 compared to their 2024 spending estimates. This increase is considered a key driver of economic growth in the GCC region and is directed toward completing infrastructure projects and stimulating growth in certain economic sectors, in line with strategic development plans, said GCC-Stat in its report. GCC-Stat expects government revenues in the GCC countries to remain relatively stable, with oil prices likely to stay at moderate to high levels in 2025. Estimated total public revenues for the GCC countries are projected to be around $487.8 billiion during the current financial year, while the combined budget deficit of the six countries is estimated at $54.3 billion. In the GCC, government revenues are directly affected by movements in global oil prices, as oil revenues constitute the largest proportion of income sources for the region. GCC countries follow a conservative approach in calculating the break-even oil price in their general budget estimates. This approach aims to account for international economic fluctuations and volatility in global oil prices, said the report. The GCC countries plan to finance budget deficits through the use of reserves and domestic and foreign borrowing, it added.
Gulf Business
5 days ago
- Business
- Gulf Business
GCC public spending projected to hit $542bn in 2025
Image: Getty Images/ For illustrative purposes Total public spending by the six Gulf Cooperation Council (GCC) countries is expected to reach $542.1bn in the 2025 financial year, according to data released by the GCC Statistical Center ( According to a report published by the state news agency, WAM , the six member states — the UAE, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain — have largely projected higher public expenditures compared to 2024, directing increased funds toward infrastructure completion and targeted economic sector growth in line with long-term development strategies. GCC-Stat data shows that government revenues across the bloc are forecast to remain relatively stable in 2025, supported by expectations that global oil prices will remain at moderate to high levels throughout the year. Total public revenues for the GCC countries are estimated at $487.8bn, resulting in a combined budget deficit of $54.3bn for the year, the WAM report stated. Read: Oil revenues: Major part of GCC government income Oil revenues remain the largest component of government income in the region, making fiscal positions highly sensitive to global oil price fluctuations. To mitigate risk, GCC countries adopt a conservative methodology when calculating break-even oil prices in their budget frameworks, aiming to buffer against volatility in the international energy markets. To bridge the fiscal gap, GCC countries plan to rely on a mix of financial reserves and both domestic and international borrowing
Economy ME
02-06-2025
- Business
- Economy ME
GCC financial markets hit nearly $4.2 trillion in capitalization in 2024, marking 0.7 percent growth
The overall composite index of financial markets in the Gulf Cooperation Council (GCC) countries experienced a modest growth of 0.7 percent in 2024. This index serves as a reflection of the performance of GCC financial markets as a cohesive entity, the Emirates News Agency (WAM) reported. By the conclusion of 2024, the total market capitalization of GCC financial markets reached approximately $4.2 trillion, as per the latest statistics released by the GCC Statistical Centre (GCC-Stat). However, this total market capitalization faced a decline of 4.4 percent compared to the close of 2023. In 2024, the market capitalization of GCC financial markets represented roughly 3.5 percent of the total global market capitalization. In May 2025, the Consumer Price data published by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf ( GCC-Stat ) revealed that the general inflation rate in the GCC countries rose by 1.7 percent at the end of December 2024, compared to the figures recorded in the same month of the previous year. The increase in the annual general inflation rate in the Gulf is largely attributed to a 5.9 percent rise in housing prices and a 2.8 percent increase in the prices of goods and services. The culture and entertainment sector experienced a 1.8 percent rise, while both the food and beverages sector and the education sector increased by 1.2 percent each. The restaurants and hotels sector saw a 1.1 percent increase, and the health sector edged up by 0.1 percent. Read more: GCC countries contribute over 35 percent of all emerging-market U.S. dollar debt in Q1 2025, Fitch reports GCC inflation dynamics This inflation was counterbalanced by a 2.7 percent decline in prices within the transportation sector, 1.7 percent in furniture and household equipment, 1.1 percent in tobacco, 0.9 percent in communications, and 0.2 percent in clothing and footwear. The overall inflation rate in the Gulf was also lower than the inflation rate in the European Union, which stood at 2.7 percent, and was beneath that of many of the GCC's major trading partners in total merchandise imports. Brazil recorded the highest inflation rate in December 2024 compared to the figures from the same month in the previous year, at 4.8 percent. Following Brazil was Japan at 3.6 percent, then the Republic of India and the United Kingdom at 3.5 percent each, the United States at 2.9 percent, Germany at 2.6 percent, South Korea at 1.9 percent, and both France and Italy at 1.3 percent each, with China at 0.1 percent. The GCC banking sector posted a net profit of $15.6 billion during the first quarter of 2025, up 7.1 percent quarterly and 8.6 percent annually. This growth marked a new record high for the sector, despite a decline in net interest income during the quarter. However, growth was mainly driven by higher non-interest income, lower operating expenses as well as a sharp seasonal decline in impairments during the quarter. GCC banking sector profits hit record $15.6 billion in Q1 2025 The GCC banking sector reported a net profit of $15.6 billion in the first quarter of 2025, reflecting a quarterly increase of 7.1 percent and an annual rise of 8.6 percent. This growth set a new record high for the sector, even in the face of declining net interest income during the quarter. The increase was primarily fueled by higher non-interest income, reduced operating expenses, and a significant seasonal drop in impairments during the period. According to the latest report from Kamco Invest , the decrease in net interest income was influenced by rate cuts implemented in the second half of 2024. The aggregate yield on credit for the GCC banking sector fell by 5 basis points to 4.16 percent in Q1 2025, down from 4.21 percent in Q4 2024.
Zawya
02-06-2025
- Business
- Zawya
GCC financial markets reach total capitalisation of approximately $4.2trln
MUSCAT – The overall composite index of financial markets in the Gulf Cooperation Council (GCC) countries recorded a slight growth of 0.7% in 2024. The index reflects the performance of GCC financial markets as a unified bloc. By the end of 2024, the total market capitalisation of GCC financial markets stood at approximately $4.2 trillion, according to the latest statistics issued by the GCC Statistical Centre (GCC-Stat). However, the total market capitalisation witnessed a decline of 4.4% compared to the end of 2023. In 2024, the market capitalisation of GCC financial markets accounted for around 3.5% of the total global market capitalisation.
