Industrial investment across the Gulf Cooperation Council (GCC) has reached approximately US$426 billion, reflecting the continued expansion of the region’s manufacturing sector and efforts to diversify its economic activities. China has also emerged as the GCC’s largest source of imports, highlighting the growing importance of trade relations between China and Gulf economies.
According to data from the GCC Statistical Center, cited by the Saudi Press Agency on October 18, the six GCC member states had nearly 22,000 factories employing more than 1.7 million people as of July 2026. These figures demonstrate the scale of industrial development across the region as governments continue to encourage investment in manufacturing and related industries.
Manufacturing contributed approximately 13% of the GCC’s combined gross domestic product in 2025, underscoring its role in regional economic development. Industrial investment has been particularly concentrated in strategic sectors, with around 40% directed toward plastics, refined petroleum products, aluminum, gaseous fuels, and iron and steel.
The region’s industrial sector also plays a significant role in international trade. Industrial products accounted for approximately 69% of total GCC exports, with major export categories including petroleum gases, hydrocarbons, petroleum oils, motor vehicles, organic compounds, aluminum, ships, boats, and electrical machinery.
Meanwhile, China has become the GCC’s leading import partner, accounting for approximately 20% of the region’s total imports. The figures highlight China’s important position in supplying goods to Gulf markets, particularly as industrial activity and infrastructure development continue across the region.
Major imported products include machinery and equipment, motor vehicles, pharmaceuticals, iron and steel, and plastics. These categories reflect the GCC’s demand for industrial inputs, transportation equipment and other products supporting economic activity.
The strong trade relationship between China and the GCC also illustrates the interconnected nature of global manufacturing and supply chains. Chinese suppliers serve a substantial share of the Gulf import market, while GCC economies maintain significant export activity across energy, industrial materials and manufactured products.
According to the GCC Statistical Center, the latest figures reflect the continued expansion and diversification of the region’s industrial base, supported by increasing investment, growing production capacity and broader international trade networks.
As GCC economies continue developing their manufacturing capabilities, industrial investment and international trade are expected to remain important areas of economic activity. The latest data also underscores China’s position as a major trading partner for the Gulf region, particularly in machinery, vehicles and industrial goods.
