Gulf remains magnet for foreign investment despite war uncertainty, says GCC Secretary General
The GCC economic bloc remains a magnet for investment despite risks such as the continuing war , disruption to shipping, and energy sector volatility, its secretary general said on Monday. While supply chains are being reshaped and emerging technologies are redefining sectors, geopolitical considerations raise the fundamental question of where investment will go, Jasem Al Budaiwi said.…
The Gulf Cooperation Council (GCC) remains an attractive destination for foreign investment despite ongoing geopolitical uncertainties, according to Jasem Al Budaiwi, the Secretary General of the GCC. Speaking at the AIM Congress 2026 in Dubai, Al Budaiwi highlighted that the region's resilience lies in its strong economic fundamentals, robust institutions, and clear development direction.
Despite the challenges posed by the ongoing Iran conflict, the Gulf states have managed to maintain economic stability and continuity, according to Al Budaiwi. The region has witnessed exceptional economic development in recent times, which has reinforced the solidity of its foundations, he added. The Iran conflict, which has been ongoing for seven months, has caused severe disruptions in the region, particularly in sectors like hospitality, aviation, and tourism, as well as in the energy market.
The closure of the Strait of Hormuz, a crucial global trade route, has further exacerbated the situation, leading to volatility in global energy markets. However, the GCC states have managed to maintain growth momentum, albeit at a slower pace, as confirmed by the International Monetary Fund. Al Budaiwi emphasized that the GCC has evolved from a collection of six separate markets to an integrated, interconnected economic and investment system.
This transformation is underpinned by the region's substantial financial and investment base, which has enabled it to attract significant foreign direct investment (FDI). In fact, the GCC's economy is among the world's 10 largest, with a combined GDP of $2.4 trillion. The region's sovereign wealth funds hold assets estimated at over $5 trillion, and the commercial banking sector assets have grown to $3.9 trillion in 2025.
The intra-Gulf investment flows have also deepened, accounting for nearly 22% of the total stock of foreign direct investment inflows into the GCC states. The UAE, in particular, has been proactive in adapting to the changing global landscape. Dr Thani Al Zeyoudi, the UAE's Minister of Foreign Trade, highlighted the UAE's focus on building an open, resilient partnership economy.
He noted that investors are looking for returns, flexibility, efficiency, and market access, all of which the UAE provides. The UAE's non-oil foreign trade surpassed $1.9 trillion in the first half of 2026, reflecting the depth of confidence in the UAE's model.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
