Sailing toward growth

The Middle East’s US$40 billion shipbuilding potential over the next decade.

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Most trade in the Middle East is conducted via maritime routes. At a time when the global shipbuilding industry, currently dominated by Asian countries, is growing quickly, that fact represents an opportunity for Middle East countries, in particular those of the Gulf Cooperation Council (GCC), to develop their own shipbuilding capabilities. Increased maritime capabilities would enable GCC countries to meet demand across multiple segments: commercial shipping; defense; and high-value, specialized areas such as leisure vessels.

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We estimate that the shipbuilding opportunity for GCC countries could amount to about US$40 billion over the next decade, thanks to four factors.

Global trade influence

GCC countries are ever more important in global commerce. In 2023, these countries were responsible for 3.4 percent of global total trade in goods. Much of this activity stems from energy exports, including hydrocarbons and alternative fuels.
Strategic location

GCC countries are strategically located along critical maritime corridors in which vessel traffic is set to increase.
Defense investment

GCC countries are significant defense spenders. Saudi Arabia, for instance, was the seventh-largest defense spender in the world in 2024. Saudi Vision 2030 aims to localize 50 percent of military spending.
Tourism growth

The tourism and leisure segments are growing, and GCC countries are emerging as luxury destinations.

China dominates world shipbuilding
Global shipbuilding market share

Source: Clarksons World Fleet Register, Strategy& analysis

GCC countries’ efforts to develop a robust shipbuilding industry highlight the region’s broader commitment to economic diversification, self-reliance, and global competitiveness. By leveraging its strategic geographic location; vast demand across commercial, defense, and leisure sectors; and well-designed government initiatives, the region is positioning itself to emerge as a leader in the global shipbuilding industry of the future.

Implementation of the framework for shipbuilding industry activation—built on strong governance, ecosystem enablers, and targeted policies—would ensure these efforts are structured, sustainable, and aligned with global market trends. Success hinges on addressing critical challenges, such as building a skilled workforce, reducing reliance on imports, and fostering private-sector involvement through incentives and partnerships. Strategic collaboration with global players, coupled with a relentless focus on innovation and sustainability, will be essential in overcoming these hurdles and achieving long-term growth.

This forward-looking approach not only enhances GCC countries’ economic resilience but also positions the region as a hub for maritime excellence, creating new opportunities for growth, innovation, and employment while marking the region’s shipbuilding presence on the global stage for decades to come.