GCC states strengthen financial sustainability and risk management tools

Gulf Cooperation Council (GCC) leaders are fortifying the region's financial stability and risk management capabilities, according to Jassem Al-Budaiwi, Secretary-General of the Council. During a gathering in Manama, Bahrain, Al-Budaiwi emphasized that GCC states are actively enhancing financial sustainability and efficiency, creating risk management tools, and improving public spending efficiency.

These actions have bolstered their capacity to maintain economic growth and adapt to future changes. The meeting, chaired by Bahrain's Finance Minister Sheikh Salman bin Khalifa Al Khalifa, took place amid a period of significant geopolitical shifts, market volatility, and global economic uncertainty. Al-Budaiwi highlighted the importance of further fortifying readiness to tackle challenges and ensure stable economic expansion.

He also stressed the significance of building upon existing achievements, improving coordination between economic policies, completing the customs union and common market, and boosting the investment climate. With a GDP of around $2.4 trillion, the GCC ranks among the world's top ten economies, with non-oil sectors contributing to 79% of the GDP, indicating substantial progress in economic diversification.

At the end of June 2023, the collective net foreign assets of GCC central banks amounted to approximately $829 billion, sufficient for around 11 months of imports. Inflation remained stable at 2.1% in May 2023, outpacing major global economic blocs. Al-Budaiwi affirmed that these signs underscore the robustness of GCC economies and the efficacy of their economic and fiscal policies, as well as ongoing strides in economic diversification and Gulf integration.