Al-Badawi: Gulf States Have Proven the Resilience of Their Economies

Secretary General of the Gulf Cooperation Council (GCC) Jasem Al-Budaiwi affirmed 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-Budaiwi 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 finance and economic ministers of the GCC member states.

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

He pointed out 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 and supply chains, and growing uncertainty regarding global economic prospects. He clarified that, given the close ties between the GCC economies and the global economy, these developments underscore the importance of continuing to enhance preparedness and the ability to address various challenges and mitigate their impact on GCC economies, thereby preserving financial and economic stability and sustainable growth.

In this context, he noted that “GCC member states have demonstrated, by the grace of God and through the wisdom of their leaders, may God protect and preserve them, 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 emphasized 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 work on several priority tracks, foremost among them completing the requirements of the customs union and the common Gulf 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 gross domestic product (GDP) of GCC member states reached approximately $2.4 trillion, placing them collectively among the world’s ten largest economies. Non-oil activities accounted for about 79% of GDP, reflecting continuous progress in economic diversification. The net foreign assets of GCC central banks stood at approximately $829 billion as of 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 Gulf average reaching 2.1% in May 2026, despite current economic challenges. This rate is lower than the averages of major economic blocs, confirming that these indicators demonstrate the robustness of GCC economies, the effectiveness of their economic and fiscal policies, and the continuous progress in economic diversification and Gulf economic integration.