The Gulf Cooperation Council's (GCC) strong economic base, high urbanisation and strategic investments in non-oil sectors have positioned the region as a key player in global economic trends. With a GDP surpassing USD2 trillion in 2023 and continued growth driven by rising employment, particularly among women, the region is set to see increased consumer spending and a booming retail sector, especially in e-commerce. The GCC’s ongoing diversification and modernisation efforts, coupled with significant foreign direct investments (FDIs), are further solidifying its role as a leading hub for international trade and economic resilience.
The rising employed population, including more women in Saudi Arabia, is set to boost income growth and spending in the GCC
The total employed population in the GCC is expected to reach more than 30 million by 2028.
Women's share of the employed population in the GCC is expected to grow from under 16% in 2018 to 20% by 2028, with Saudi Arabia aiming for 30% by 2030
Source: Euromonitor International
This is expected to be a significant driver behind disposable income per household increase and overall consumer spending in the coming years. The increase in the number of women employed is expected to be driven not just by reforms and post-COVID-19 industry demands but also because of the increasing opportunities that emerging fields like fintech and the digital world are offering for women, dismissing old stereotypes.
The rise in women's employment is crucial for the growth of key retail categories like beauty and personal care, health and wellness, luxury products, and apparel.
Retailing in the GCC has shown impressive growth, rising from USD203 billion in 2018 to USD215 billion in 2023, with projected growth of over 5% between 2023 and 2024
Source: Euromonitor International
The upward trend in retailing is set to continue, with retail sales expected to surpass USD280 billion by 2028. Notably, e-commerce is a key driver of this growth, doubling its share of total retailing from under 5% in 2018, led by the UAE and Saudi Arabia, which together account for over 80% of the GCC’s online sales. This growth is supported by the region's robust ICT and fintech infrastructure, with the UAE, Qatar and Kuwait boasting some of the highest mobile internet speeds globally, ensuring seamless connectivity for e-commerce expansion.
The GCC’s strategic economic diversification and investment initiatives are set to enhance the region’s non-oil GDP growth
In 2023, the GCC's nominal GDP surpassed USD2 trillion, boosting its contribution to the MENA region's economy from 44% in 2013 to 51.3%. With real GDP growth expected to outpace many developed economies by 2028, the region's strong governance, economic diversification, and business-friendly environment lay a solid foundation for continued resilience.
The GCC's diversification strategy has also significantly increased non-oil exports, with the UAE achieving a record AED3.5 trillion in trade in 2023. This growth has attracted a surge in FDI, particularly in the UAE and Saudi Arabia, where investments have flowed into key sectors like trade, manufacturing and tourism. The tourism sector is also seeing rapid development, with landmark projects like NEOM and Red Sea Global in Saudi Arabia, and major events such as the 2030 Expo and FIFA. The UAE continues to host significant events like Gulfood and the World Government Summit, alongside ambitious projects like the Hatta Redevelopment and Dubai Islands, cementing the region's status as a global economic and cultural hub.
The influx of FDI into the GCC region fuels job creation across a variety of industries, leading to increased employment opportunities for both local and expatriate populations. As more people gain employment, consumer spending naturally rises, further driving economic growth and creating a positive feedback loop that enhances overall economic stability. In addition, the shift away from an oil-dependent economy towards a more diversified industrial base also promotes a more resilient economic structure, capable of withstanding global market fluctuations. As the GCC continues to modernise its economy and infrastructure, its influence on global economic trends is set to grow, with a stronger, more diversified economy that offers a wealth of opportunities for both investors and the local workforce.
Learn more about the GCC economies in our reports, Economy, Finance and Trade: Saudi Arabia, and Economy, Finance and Trade: United Arab Emirates.