Al-Badoei: GCC Countries' Economies Proved Their Ability to Handle Economic and Financial Challenges

The Secretary-General of the Gulf Cooperation Council (GCC), Jassem Al-Budawi, said on Wednesday that the economic partnership between the GCC member states and Asian countries represents a strategic pillar for enhancing economic and investment cooperation, expanding the horizons of financial and banking integration, and developing digital infrastructure, thereby contributing to sustainable development and shared prosperity.

The GCC Secretariat General stated that this remark was made in a speech delivered by Al-Budawi during the opening of the Gulf-Asian Economic Forum in Bangkok, the capital of Thailand, under the theme “Banking, Investment, and Digital Infrastructure.” The forum was organized by the Kuwait Banking Association and the Asian Bankers Association on the sidelines of the 2026 Annual Meetings of the International Monetary Fund and the World Bank Group.

Al-Budawi clarified that the global economy is undergoing rapid transformations, with geopolitical developments intersecting with changes in trade, investment, and technology. This underscores the importance of building reliable economic partnerships capable of addressing challenges, ensuring the sustainability of financing and trade, and opening broader horizons for economic growth.

He noted that the economies of the GCC member states have demonstrated their ability to cope with economic and financial challenges, thanks to the economic and fiscal policies pursued by the member states, their strong financial reserves, robust banking sectors, and their efforts to diversify their economies, develop infrastructure, and deepen Gulf economic integration.

Al-Budawi emphasized that the historical and extensive commercial relations between the GCC member states and Asian countries form a solid foundation for building long-term economic and investment partnerships. He explained that integrating Gulf financial and investment capabilities with Asian industrial and technological capacities and markets provides opportunities to launch joint projects that contribute to knowledge transfer, technology localization, and enhancing added economic value.

He added that the economic diversification programs in the GCC member states offer growing opportunities for Asian companies and institutions to participate in major development projects, while Asian markets provide opportunities for Gulf institutions to expand their investments and international partnerships.

In outlining future areas of cooperation, Al-Budawi identified three main pathways to enhance economic partnership between the two sides: logistics and infrastructure, through strengthening links between ports and economic centers and developing transport and storage networks to facilitate trade flows and enhance the efficiency and resilience of supply chains.

He explained that the second pathway focuses on digital infrastructure and artificial intelligence, by expanding joint investments in data centers, cloud services, and advanced technological applications, and exchanging expertise and knowledge to enhance productivity, improve service efficiency, and support digital transformation in the economies of both sides.

He added that the third pathway focuses on enhancing financial and banking cooperation by expanding trade and project financing, developing joint investment platforms, strengthening interconnections between capital markets, and facilitating cross-border payments. He stressed that providing reliable and effective financing is a fundamental element in transforming economic opportunities into executable investment projects.

Al-Badawi reviewed a number of economic and financial indicators reflecting the resilience of the GCC countries’ economies, based on the latest data issued by the GCC Statistical Center. He noted that the assets of Gulf sovereign wealth funds amount to approximately $5.2 trillion, while the market capitalization of Gulf financial markets reached around $4 trillion by the end of June 2026.

He added that the total assets of commercial banks operating in the GCC countries amounted to approximately $4.1 trillion by the end of June 2026, while the net foreign assets of Gulf central banks reached about $829 billion during the same period. He emphasized that these indicators reflect the financial and economic strength of the GCC countries and their capacity to finance long-term investments, support business growth, and build economic partnerships with sustainable impact.

Al-Badawi stressed the importance of advancing Gulf-Asian partnership from the stage of exploring opportunities to the actual implementation of joint projects and investments, by enhancing communication between economic and financial institutions, identifying priority opportunities, and establishing practical steps for their development. He underscored the pivotal role of the private sector in supporting innovation and transforming economic initiatives into tangible developmental projects.

He concluded his speech by affirming that shared economic interests and integrated capacities between the GCC countries and their Asian partners provide a solid foundation for elevating economic relations to more advanced levels, thereby achieving mutual interests and supporting sustainable economic growth.