• The volume of government debt for GCC countries has doubled over the past ten years, reaching about $628 billion in 2023, up from $144 billion in 2014 and the debt-to-GDP ratio peaked in 2020 at 40.3% but declined in subsequent years to about 29.8% in 2023.
The Statistical Centre of the Gulf States reported that financial risks in GCC countries remain low in the near term, with expectations of stable or low interest rates both locally and globally, according to Al Anba newspaper.
Credit rating agency reports also indicate an improvement in Gulf sovereign bond ratings in 2023, increasing the region’s credit attractiveness and enabling the rescheduling of public debts at lower financial costs.
According to Gulf Statistics estimates, the public debt of Gulf countries is expected to stabilize at 28% of gross domestic product (GDP) during 2024 and 2025. Plans to reform fiscal budgets by improving the efficiency of public spending and implementing programs to stimulate growth in non-oil sectors will help achieve a balance between maintaining economic growth and sustaining public spending.
The centre’s data shows that the volume of government debt for GCC countries has doubled over the past ten years, reaching about $628 billion in 2023, up from $144 billion in 2014. The debt-to-GDP ratio peaked in 2020 at 40.3% but declined in subsequent years to about 29.8% in 2023.
Total public finances for the GCC countries also recorded a significant deficit from 2014 to 2021, with the highest deficit occurring in 2015 at about $158 billion, or 11.1% of the GCC’s GDP. In 2020, the deficit was $128 billion, or 8.8% of GDP.
The year 2022 saw a remarkable financial surplus in the GCC countries, estimated at $134 billion, or 6.1% of total output, followed by a surplus of $2 billion in 2023.
Total government revenues in the GCC countries significantly increased from 2021 to 2023, reaching about $641 billion in 2023, with oil revenues accounting for 62%. This compares to revenues of $723 billion in 2022, with oil revenues accounting for 67%.
Total government spending in the GCC countries reached its highest levels in 2023, totaling about $639 billion, with 85% allocated to current spending and 15% to investment spending.
