GCC Secretary General Jasem Albudaiwi Highlights Progress In Economic Cooperation And Integration

The Gulf Cooperation Council (GCC) is making strides in fostering cooperation and integration among its member states, particularly in the monetary and banking sectors. This progress was highlighted by GCC Secretary General Jasem Albudaiwi, who emphasised the importance of accelerating economic and developmental projects. The aim is to achieve Gulf economic unity and elevate its status as a global financial hub.

Albudaiwi shared these insights during the 84th meeting of the Committee of GCC Governors of Central Banks, held in Kuwait. The session was led by Basel Ahmed Al Haroon, Governor of the Kuwait Central Bank. Albudaiwi noted that global economic trends and political crises pose challenges that require strategic responses from GCC countries due to their interconnectedness with the world economy.

Despite these challenges, Albudaiwi praised the GCC's ability to navigate difficulties through wise policies. He highlighted that the combined GDP of member states ranks eleventh globally, reaching $2.1 trillion in 2023. This accounts for approximately 60.3% of the Arab GDP, showcasing the region's economic strength.

Foreign direct investment in the GCC reached around $649 billion by the end of 2023, representing about 30.7% of its GDP. This figure surpasses the Group of Twenty (G20) average of 32.9%. Additionally, GCC sovereign wealth funds hold assets estimated at $4.4 trillion, making up over 34% of the top 100 sovereign wealth funds worldwide.

The capital markets within the GCC accounted for 4.3% of global market capitalization in 2023, ranking seventh worldwide in size. Albudaiwi also mentioned that total bank deposits in commercial banks across the GCC reached approximately $1,905 billion ($1.905 trillion) by the end of 2023, marking an increase of 8.1% compared to 2022.

Furthermore, foreign reserve assets within the GCC continued their upward trajectory, growing to about $747 billion by year-end 2023. This represents a growth rate of 4.4% from the previous year, underscoring financial stability and resilience amid global uncertainties.

Regional Economic Bloc Success

Albudaiwi concluded by asserting that these statistics demonstrate the maturity and success of the GCC as a regional economic bloc. "These indicators show our competitive presence on both global and regional levels," he stated confidently.

The ongoing efforts to enhance cooperation among member states are crucial for maintaining this competitive edge across various economic and developmental dimensions.

With inputs from SPA