Al-Badawi: Gulf states proved their ability to handle crises and maintain economic resilience

The Secretary-General of the Gulf Cooperation Council (GCC), Jassem Al-Bedaiwi, confirmed on Thursday that GCC member states have demonstrated their ability to handle various crises and exceptional circumstances with efficiency and competence, while maintaining the robustness of their economies.

This statement was made in a speech delivered by Al-Bedaiwi during the 126th meeting of the GCC Financial and Economic Cooperation Committee, held in Manama under the chairmanship of Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa, and attended by the ministers responsible for financial and economic affairs in GCC member states.

He stated that Gulf countries continued to work on enhancing financial sustainability and efficiency, developing financial risk management tools, improving public spending efficiency, and diversifying revenue sources, thereby strengthening their ability to preserve economic gains and provide the necessary flexibility to cope with future changes.

He noted that the meeting takes place at a critical juncture, amid rapid geopolitical developments in the region, accompanied by market volatility, challenges in trade and investment flows, supply chain disruptions, and growing uncertainty regarding global economic prospects.

He clarified that given the close ties between GCC economies and the global economy, these developments underscore the importance of continuing to enhance preparedness and capacity to address various challenges and mitigate their impact on GCC economies, thereby preserving financial and economic stability and sustaining growth.

In this context, he mentioned that “GCC member states have proven, by the grace of God and through the wisdom of their leaders and their strategic vision, their ability to handle various crises and exceptional circumstances with efficiency and competence, and to maintain the robustness of their economies. This is based on effective fiscal and economic policies, strong financial positions, ambitious economic diversification programs, and advanced frameworks for coordination and joint cooperation.”

He pointed out that recent developments have confirmed the importance of building on these achievements and enhancing coordination among the fiscal and economic policies of GCC member states. This would raise their capacity to respond to changes and external shocks, provide greater scope for joint action when needed, and simultaneously maintain the sustainability of public finances and continue supporting growth and development.

He said, “The economic and financial progress achieved by GCC member states in recent periods provides a strong foundation for continuing the path of Gulf economic integration. However, the nature of the current stage requires us to accelerate efforts in several priority areas, foremost among them completing the requirements of the Customs Union and the Common Market, enhancing the flow of trade and investment among GCC member states, and strengthening the financial and investment environment.”

During his speech, he also highlighted several indicators reflecting the robustness of GCC economies. The combined GDP of GCC member states reached approximately $2.4 trillion, placing them collectively among the world’s ten largest economies. Non-oil activities contributed about 79 percent of GDP, reflecting continuous progress in economic diversification. The net foreign assets of GCC central banks reached approximately $829 billion by the end of June 2026, covering about 11 months of GCC imports.

He added that GCC member states also maintained stable inflation levels, with the regional rate reaching about 2.1 percent in May 2026, despite current economic challenges. This figure is lower than the averages of major economic blocs, confirming the robustness of GCC economies, the effectiveness of their economic and fiscal policies, and the continuous progress in economic diversification and Gulf economic integration.