GCC Secretary-General Highlights Economic Strength As Key To Global Investment Attraction

The Gulf Cooperation Council (GCC) is becoming a global hub for investment and international partnerships, according to Secretary-General Jasem Albudaiwi. He attributes this to the Gulf states' strategic location, political stability, and robust economic foundations. These elements, along with accelerated integration projects, enhance the GCC's role in shaping the future global economy.

Albudaiwi highlighted that the GCC's economy is experiencing a strong and sustainable phase due to successful economic reforms and strategic investments. The Gross Domestic Product (GDP) of the GCC states reached around $2.3 trillion in 2024, placing them ninth globally and contributing 63% to the total Arab economy. Non-oil sectors now contribute over 76% of the GDP, showcasing effective economic diversification policies.

The financial sector within the GCC is notably strong and stable. It boasts a market value exceeding $4.2 trillion, banking assets amounting to $3.5 trillion, and reserves nearing $800 billion. Sovereign wealth funds surpassing $4.8 trillion further solidify the council states' position as a significant player in enhancing global economic stability.

During his participation at the seventh Milken Institute Middle East and Africa Summit in Abu Dhabi, Albudaiwi discussed these developments. He emphasized that these factors make the GCC an attractive destination for investment and a key platform for international partnerships.

The GCC is actively negotiating free trade agreements (FTAs) with several international partners such as the United Kingdom, China, Türkiye, Japan, Indonesia, New Zealand, Pakistan, and Korea. These negotiations aim to boost trade and investment flows while diversifying income sources. They also seek to open new markets for Gulf products, enhancing competitiveness and reducing consumer prices within the region.

Artificial intelligence (AI) is regarded as essential for economic and social transformation by the GCC states. The General Secretariat has implemented various regulatory frameworks and guiding principles related to AI ethics and applications in public services. A comprehensive Gulf Strategy for Artificial Intelligence will be adopted by December 2025.

AI Initiatives

The Guiding Framework for AI Ethics was established in 2024, followed by frameworks for AI applications in public services and climate forecasting using AI set for October 2025. These initiatives underscore AI's importance in driving future growth across various sectors within the GCC.

Albudaiwi noted that these efforts reflect a commitment to leveraging technology for sustainable development while ensuring ethical standards are maintained across all applications of artificial intelligence.

The Secretary-General's remarks underscore how strategic planning and robust policies are positioning the GCC as a major player on the global stage. With ongoing initiatives in trade agreements and technological advancements like AI, the region continues to strengthen its economic influence worldwide.

With inputs from SPA