Kuwait city: Gulf Cooperation Council (GCC) Secretary-General Jasem Mohamed Albudaiwi confirmed that despite global challenges, the economies of the GCC states have shown their capacity to withstand global economic shocks. This resilience is attributed to robust non-oil activities fostered by ongoing reforms and strong domestic demand, which have sustained their economic growth.
According to Saudi Press Agency, Albudaiwi's remarks were made during a joint meeting in Kuwait City attended by the ministers of finance and central-bank governors of the GCC states, along with International Monetary Fund (IMF) Managing Director Kristalina Georgieva. The meeting, chaired by Dr. Subaih Abdulaziz Al Mukhaizeem, Kuwait's Minister of Electricity, Water and Renewable Energy, acting Minister of Finance, and Minister of State for Economic Affairs and Investment, has been held annually for over a decade.
Albudaiwi began his address by welcoming the finance ministers, central-bank governors, and the IMF chief, expressing gratitude to Georgieva and the IMF team for their contributions through studies and reports. These efforts aid in discussions on key economic and financial developments in the GCC and assist in crafting policies to bolster financial stability and encourage sustainable growth.
He highlighted the positive economic outlook, driven by reduced oil dependence, increased natural gas production, and ongoing economic reforms. He noted that inflation rates remain manageable, with fiscal and monetary policy buffers providing the flexibility needed to handle uncertainties.
Albudaiwi pointed out the necessity of policies that enhance resilience and accelerate economic diversification, independent of oil prices. This involves balancing short-term stability with credible medium-term strategies, increasing non-oil revenues, and prudent risk management.
On monetary policy, he stated that the GCC states are actively working to strengthen policy, develop liquidity management, and deepen financial markets, which have contributed to financial stability. They are also implementing precautionary and proactive policies to maintain economic stability.
Crucially, Albudaiwi stressed the importance of continuing structural reforms, such as improving the business environment, enhancing labor force participation, especially for women, leveraging digitization and artificial intelligence, and deepening capital markets, to achieve sustainable private sector-led growth.
He concluded by emphasizing that navigating a world full of shocks requires a clear vision, strong will, and close cooperation. Through forward-looking policies and economic diversity, the GCC states aim to enhance resilience and embrace opportunities for greater prosperity.