Gulf Oil Sector Contributes $561 Bn to Regional Economy in 2024: Report

The oil sector continued to play a pivotal role in the economic landscape of the Gulf region in 2024, contributing an estimated $561.2 billion to the regional economy, equivalent to 24 percent of gross domestic product (GDP) at current market prices, according to a new report.

The figures were released by the Statistical Center for the Cooperation Council for the Arab Countries of the Gulf in its latest Energy Statistics report, which provides a comprehensive overview of developments in the oil, gas and renewable energy sectors across the Gulf Cooperation Council (GCC).

According to the report, the sector’s value added at constant prices reached $541.9 billion, representing 29.3 percent of the GCC’s total GDP, highlighting the continued significance of hydrocarbons as a key driver of economic activity across the region. Despite its strong economic contribution, the report noted a decline in crude oil production during 2024. Total crude output across GCC countries fell by 5.4 percent, averaging 16.1 million barrels per day, compared with 17.0 million barrels per day in 2023.

Crude oil exports from the region also declined during the year. The report showed exports dropped by 7.2 percent, reaching 11.5 million barrels per day, down from 12.3 million barrels per day recorded in the previous year.

The report attributed these changes primarily to market dynamics and production adjustments within the global oil market. In contrast to the decline in crude oil output, natural gas production in the GCC remained largely stable during the year. Marketed natural gas output recorded a marginal decrease of 0.4 percent, reaching 442.0 billion cubic meters in 2024, compared with 443.8 billion cubic meters in 2023.

The relatively steady performance of the gas sector reflects growing demand for cleaner fuel sources and the increasing role of natural gas in electricity generation and industrial activity across the region.

The report also highlighted the continued expansion of the GCC’s energy reserves. Between 2020 and 2024, crude oil reserves across GCC countries recorded an average annual growth rate of 30.7 percent, while natural gas reserves increased by around 1 percent annually.

By the end of 2024, GCC countries collectively held an estimated 511.9 billion barrels of crude oil reserves and approximately 44.3 trillion cubic meters of natural gas, reaffirming the region’s status as one of the world’s most resource-rich energy hubs.

Globally, GCC countries maintained a dominant presence in the international energy market. According to the report, the bloc accounted for 21.8 percent of global crude oil production and 26.6 percent of global crude oil exports in 2024.

The region also contributed 10 percent of worldwide marketed natural gas production and 13.5 percent of global gas exports, underscoring the GCC’s strategic importance in ensuring global energy supply.

Furthermore, the report indicated that GCC countries hold 32.7 percent of the world’s proven oil reserves and 21.2 percent of global natural gas reserves, reinforcing their long-term influence on global energy markets.

Although hydrocarbons remain the backbone of the region’s energy sector, the report noted steady progress in the development of renewableenergy.

Total renewable energy capacity across GCC countries reached 14.2 gigawatts in 2024, reflecting growing investment in clean energy projects as part of national strategies aimed at diversifying energy sources and reducing carbon emissions. However, the figure still represents only 0.3 percent of global renewable energy capacity, indicating significant room for expansion.

The report also highlighted the economic benefits derived from regional electricity interconnection initiatives.

Electricity exchange among GCC countries reached 1,795.9 gigawatt hours in 2024, generating estimated savings of around $540.5 million through improved efficiency, optimized power generation and enhanced energy security.

Analysts note that such projects play a crucial role in strengthening regional energy integration while supporting economic diversification efforts across the Gulf.

Overall, the report underscores the continued centrality of the oil and gas sector to the GCC economies, even as countries in the region accelerate efforts to expand renewable energy capacity and transition toward a more diversified and sustainable energy mix.