Gulf finance ministers and central bank governors hold meeting with IMF in Manama

Manama, Jan 1 (KUNA) -- The Bahraini capital, Manama, hosted today a joint meeting of finance ministers and central bank governors from the Gulf Cooperation Council (GCC) countries with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, under the theme “Economic Outlooks and Political Challenges: Strengthening Resilience to Geopolitical Shocks.”

The meeting, hosted by the Kingdom of Bahrain, was chaired by Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa, who conveyed greetings from Bahrain’s King Hamad bin Isa Al Khalifa and Crown Prince and Prime Minister, Prince Salman bin Hamad Al Khalifa, to the participants, wishing the meeting success and prosperity. He expressed his gratitude to the IMF management and the GCC Secretariat General for their participation and continuous cooperation.

In a speech during the meeting, the Bahraini Minister of Finance and National Economy emphasized that the GCC states’ experience of malicious Iranian aggression and attempts to undermine maritime security and international trade confirmed the reality that the resilience and capacity of GCC countries to confront various regional and international challenges and changes have become a fundamental pillar in supporting global economic security, stability, and prosperity.

He highlighted the vital importance of the security and freedom of navigation in strategic waterways, foremost among which are the Strait of Hormuz and the Bab al-Mandab, and their pivotal role in facilitating global trade flows, enhancing energy security, and sustaining international supply chains. He also noted that strengthening resilience and building stronger, more diversified, and interconnected economies remains a priority for GCC countries amid rapid global economic changes and escalating geopolitical challenges. He stressed the importance of continuing economic diversification, enhancing fiscal policy frameworks, and investing in strategic infrastructure, trade routes, logistics, energy security, digital connectivity, and human capital.

He affirmed that the economic resilience of GCC countries is rooted in regional cooperation, pointing to the importance of the collective ability of GCC states to coordinate and respond when pressures arise on trade routes, logistics networks, financial systems, or critical supply chains. He emphasized that resilience is a carefully planned process, not a product of chance.

He welcomed the participation of the IMF and its impact on the outcomes of the joint meeting, which helped achieve the desired objectives and aspirations. He clarified that decades of economic diversification in the Kingdom of Bahrain have contributed to non-oil activities accounting for more than 86 percent of GDP, noting that this diversity has enabled key sectors to continue growing and advancing.

He pointed to the capacity of GCC economies to enhance development paths in line with the visions and aspirations of GCC leaders, emphasizing the importance of continuing to strengthen the resilience of GCC economies and their ability to cope with various changes and challenges by advancing economic diversification efforts, developing fiscal and monetary frameworks, enhancing the security of energy and commodity supply chains, expanding trade and logistics routes, strengthening digital connectivity, and continuing investment in human capital development to support sustainable growth and enhance adaptability to future changes.

He affirmed that enhancing cooperation among GCC countries is a central axis in this endeavor, explaining that increasing market integration, infrastructure, trade networks, investment flows, financial systems, and digital environments will expand collective capabilities, improve competitiveness, and boost the region’s economic resilience.

He stressed the importance of continuing to enhance the preparedness of GCC countries to keep pace with rapid transformations in the field of artificial intelligence and to leverage the opportunities it offers to support growth and competitiveness through investment in digital infrastructure, talent and skills development, and the creation of regulatory and institutional frameworks that support innovation and entrepreneurship.

In this context, he highlighted the growing importance of digital assets in the economic transformation process and the unique opportunities they provide, which contribute to improving payment efficiency, deepening capital markets, and enhancing the position of GCC countries as leading global hubs in finance and innovation. He noted that the increasing interconnection of digital financial systems requires effective supervision and close cooperation among GCC countries and other nations to maintain financial stability.

The meeting also included a speech by GCC Secretary-General Jassem Al-Budaiwi, who addressed joint initiatives of the GCC states. Additionally, IMF Managing Director Kristalina Georgieva delivered an intervention covering the 2026 Economic Surveillance Memorandum for GCC countries, the region’s macroeconomic and financial resilience, economic outlooks, and policy priorities.

On his part, the Director of the Middle East and Central Asia Department at the IMF presented a review of recent developments and political priorities aimed at maintaining economic stability and enhancing the resilience of GCC countries in the face of geopolitical challenges, along with several topics regarding current economic conditions. (End) K.N.A / M.A.A