The IMF Commends the Resilience of Gulf Economies and Their Ability to Face Challenges

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The International Monetary Fund praised the robustness of the economies of the Gulf Cooperation Council (GCC) countries, and the economic and financial measures taken by the council's countries in light of the current circumstances, and their ability to maintain a growth trajectory despite increasing uncertainty and ambiguity on the global stage.

This came during the joint meeting of the ministers of finance and economy and the governors of the central banks of the GCC countries, and the Managing Director of the International Monetary Fund, Kristalina Georgieva, today, Thursday, in the Bahraini capital, Manama, chaired by the Minister of Finance and National Economy of the Kingdom of Bahrain, the current session president, Sheikh Salman bin Khalifa Al Khalifa, and attended by the ministers of finance and governors of the central banks of the council's countries.

For his part, the Secretary-General of the Gulf Cooperation Council, Jasem Al-Budaiwi, confirmed during his speech that the meeting is taking place at a time when the region is witnessing a highly complex economic and geopolitical environment, pointing out that the disruptions affecting energy production, shipping, logistics services, and trade have once again highlighted the rapid impact of geopolitical developments on global economies and markets.

Al-Budaiwi stated that the economies of the GCC countries have demonstrated, despite these challenges, strong overall financial and economic resilience, explaining that this resilience is the result of years of prudent economic and financial policies, strong financial reserves, robust banking systems, and strategic investments in infrastructure, connectivity, and economic diversification.

In parallel, he pointed out that the urgent priority lies in maintaining macroeconomic and financial stability, while ensuring that policies remain flexible and responsive to developments and capable of addressing rapid changes.

He added that dealing with challenges should not be limited to managing the direct repercussions of geopolitical shocks, but rather, resilience should be entrenched as an inherent part of the economic structure of the Council's countries.

In this context, Al-Badawi emphasized the importance of accelerating the Council's efforts to enhance economic integration, facilitate the movement of goods, services, capital, and citizens, strengthen regional supply chains, and develop more flexible and diverse trade and logistics corridors, alongside continuing structural reforms that enhance the role of the private sector, raise competitiveness, and encourage technological innovation and digital transformation.

He affirmed that these reforms also contribute to accelerating the transition towards more diversified and knowledge-based economies, noting that regional integration represents a fundamental pillar for achieving these goals.

He also clarified that deepening integration among the markets of the Council's countries, their infrastructure, financial systems, and supply chains enhances their collective capacity to absorb external shocks and turn challenges into opportunities for sustainable growth.

He stated that the current environment confirms that economic resilience does not merely mean the ability to withstand shocks, but also includes the ability to anticipate them, adapt to them, and emerge from them stronger. This requires continuing to enhance the frameworks of economic and financial policies, deepening coordination among the member states, completing the remaining steps towards broader Gulf economic integration, and strengthening partnerships with international institutions, foremost among them the International Monetary Fund.

Al-Badawi affirmed the Council's commitment to continuing this path, stating that policy coordination, deepening integration, and continuing economic transformation will contribute to strengthening the foundations of the economies of the member states and achieving sustainable prosperity for their peoples.