GCC economies poised for growth amid global challenges

KUWAIT: Undersecretary of the Ministry of Finance Aseel Al-Munifi has highlighted the strength and resilience of Gulf Cooperation Council (GCC) economies, noting their potential to address global challenges and bolster their international economic standing. Her remarks came during her address as chair of the 74th meeting of the GCC Finance Undersecretaries Committee, held in preparation for the 124th meeting of the Financial and Economic Cooperation Committee scheduled for October 2.

Al-Munifi emphasized that the rapidly changing global landscape requires careful analysis of key developments and their impact on national and regional economies, while seizing opportunities and addressing challenges to achieve sustainable growth. She cited the World Bank’s June report, which forecasts a slowdown in global economic growth to 2.3 percent this year, driven by factors including weakened global trade, fluctuating energy prices and ongoing geopolitical uncertainties.

Despite global headwinds, she noted that the GCC’s economic growth is projected at 3.2 percent in 2025, rising to 4.5 percent in 2026. “This growth reflects the region’s ongoing efforts to diversify the economy, expand non-oil sectors, localize the workforce, reform labor markets, invest in infrastructure, and promote tourism and renewable energy projects,” she said.

Undersecretary of the Ministry of Finance Aseel Al-Munifi

In a related statement, Assistant Secretary-General for Economic and Development Affairs at the GCC General Secretariat, Khaled Al-Sunaidi, said GCC economies have strengthened their regional and international position despite recurring global financial challenges. He highlighted that non-oil sectors accounted for 77.9 percent of GDP in the last quarter of 2024 and that economic diversification has become a tangible reality.

Al-Sunaidi underscored the GCC countries’ commitment to maintaining strong financial positions, with abundant reserves and public debt levels around 28 percent of GDP, positively influencing credit ratings. He also noted the role of GCC finance ministries in implementing balanced fiscal policies, optimizing government spending, and directing resources to productive sectors, which has enhanced growth, aggregate demand and economic resilience.

The meeting reviewed key topics to strengthen economic and financial cooperation among GCC states, including outcomes from the 85th meeting of the Committee of Governors of Central Banks, as well as discussions related to the Customs Union Authority, the Committee of Heads and Directors of Tax Administrations and the Gulf Common Market Committee. — KUNA