GCC A Bright Spot In Global Economy

Doha, Qatar: The fifth edition of the Qatar Economic Forum comes at a time when the world is witnessing an unprecedented transformation in the flow of global capital. The Gulf's role is no longer limited to being a major energy supplier; it has become one of the most influential financial centers worldwide.

On the sidelines of the forum a panel discussion entitled 'The Geoeconomics of Growth: Finance and Economy Minister Outlook' was held, yesterday which explored how governments in the region are dealing with accelerating global economic challenges, and examined ways to enhance economic resilience and achieve sustainable growth amid geopolitical changes and technological and economic transformations.

Addressing the session, Minister of Finance of the State of Qatar H E Ali bin Ahmed Al Kuwari shared the importance of international cooperation and experience-sharing to develop financial policies that support growth. He also highlighted the critical role of strategic investments and structural reforms in building more resilient economies capable of withstanding future crises.

Regarding recent figures about economic partnerships between Qatar and the US, Minister Al Kuwari said, they reflect the depth of economic relations and the scale of trade between the two countries. They come at a time when the US remains Qatar's most important investment destination, due to the strong opportunities and rewarding returns it offers.

Commenting about the Qatar Investment Authority's strategy, he said that the current priorities include technology, artificial intelligence, pharmaceuticals, infrastructure, and real estate, and that this strategy is reviewed annually to align with global opportunities and mitigate risks.

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Also speaking at the session, Minister of Economy and Planning , Kingdom of Saudi Arabia, H E Faisal Al Ibrahim said that the Kingdom is steadily progressing in implementing Vision 2030 that aims to restructure the national economy on a sustainable foundation, moving away from traditional reliance on oil revenues.

“The Gulf Cooperation Council (GCC) countries and economies are bright spots or jewels in the global economy today because of the ability to plan and deliver long term. Also, because of the institutional capability that is growing, coupled with leadership's vision and people's determination. And that institution capability is helping us ensure that we continuously evolve and become agile,” he said.

He pointed out that the non-oil economies of the GCC countries recorded 3.7% growth in 2024, nearly double the global average, reflecting the success of economic transformation plans across the region, particularly in Saudi Arabia under Vision 2030.

This growth, he said, signals growing recognition that the region's economies had long underutilized their potential. He affirmed that Saudi Arabia and other Gulf states have taken serious steps to restructure their economies, leading to increased opportunities in production, innovation, and exports, as well as attracting capital and talent.

He also stressed that foreign direct investment is a key pillar of the Kingdom's vision, with a target for FDI to constitute 5.7% of GDP by 2030, equivalent to approximately $100bn in investment flows.

Saudi Arabia has already seen positive indicators in this area, including the number of licenses issued, regional headquarters established, and ongoing investment deals.

He noted that the Kingdom has implemented 900 economic and regulatory reforms to improve the business environment and is continuing efforts to enhance its appeal to global investors.

For his part, Minister of Treasury and Finance, Republic of Turkiye, H E Mehmet Simsek, said Turkiye created nearly one million jobs last year and highlighted the government's commitment to continuing the economic program despite short-term pressures said, Turkiye is continuing to implement a comprehensive economic program aimed at reducing inflation and achieving sustainable growth, despite what he described as temporary side effects observed in some sectors, particularly manufacturing. Minister Simsek noted that Turkiye has rebuilt its monetary policy and established a strong fiscal foundation, highlighting that everything was now in place to reduce inflation. He acknowledged that no remedy comes without side effects, in reference to sector-specific disruptions. The Turkish finance minister noted that earlier this year, the government provided direct support to labor-intensive export sectors to help mitigate the impact of the economic transition. He stressed that the essence of the program is to reduce inflation in order to pave the way for high and sustainable growth.

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