Economic relationship between Türkiye and GCC countries
The economic relationship between Türkiye and the Gulf Cooperation Council (GCC) countries has evolved significantly since the resolution of the Gulf crisis in 2021. The de-escalation and normalisation processes which followed the al-Ula Agreement have created a fertile ground for deeper collaboration, with both sides focusing on enhancing trade, investment, and broader economic cooperation. Despite the potential, there is much untapped opportunity that could elevate these economic ties to new heights. Moreover, the Trump 2.0 era may open new avenues for GCC-Türkiye relations by encouraging pragmatic economic partnerships, reducing reliance on traditional alliances, and fostering a climate where bilateral trade and investment become key priorities.
Türkiye, the largest non-oil economy in the Middle East, is well-positioned to play a significant role in the economic future of the region. Its strong manufacturing base, diversified economy, and strategic location in Europe and Asia provide it with a unique advantage.
GCC countries seen as key player in the world
The GCC countries are well-positioned to play an important role in advancing the world’s circular economy, owing to their established status as a global hub for plastics production and export, access to world-class infrastructure, and emphasis on research and innovation. However, the development of Public-Private Partnerships (PPPs), alongside government incentives and regulations, will be essential to delivering tangible progress in plastic waste management and circularity.
Speaking at the 14th Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Conference held in Riyadh on April 20–21, industry leaders agreed that innovation and collaboration are vital to achieving economies of scale, driving sustainability, and enabling continued industry growth.
In his welcome remarks on Sunday, Khalfan al-Muhairi, SVP Regional MEAE at Borouge and Vice-Chairman of the GPCA Plastics Committee, said, “As we look towards the future, one thing is abundantly clear: the journey ahead cannot be undertaken alone. It demands a collective, unwavering commitment from all of us – from industry leaders to policymakers, from innovators to our communities and youth. Together, we must align our ambitions, mobilise our resources, and take decisive action to address the challenges and opportunities that lie before us.”
Over 5.5 million Pakistanis in GCC
Pakistan’s Ambassador to Kingdom of Saudi Arabia Ahmed Farooq has said that there are currently more than 5.5 million Pakistanis were residing in the Gulf Cooperation Council (GCC) region, who are not only contributing to the local economy but also serving as a vital backbone for Pakistan.
Addressing the Overseas Pakistanis Convention here, he said that overseas Pakistanis are playing a very important role in the country’s economic stability, especially through remittances, they are continuously playing positive role for the development and prosperity of the state.
Ambassador Ahmed Farooq highlighted the significant contributions of Pakistani workers in Saudi Arabia’s major construction and development projects, aligning with the kingdom’s Vision 2030.
He said that many positive changes have been taking place in Saudi Arabia and the United Arab Emirates in recent years, which are creating more opportunities for Pakistanis. These changes include protection of labor rights, relaxation of visa policy, and new employment opportunities for skilled people.
Gulf countries’ golden schemes are paving the way to a sustainable future?
The Gulf Cooperation Council (GCC) is at a transformative moment as it pivots from its historical reliance on oil towards a more diversified, investment-attractive economy.
The International Monetary Fund (IMF) projects the growth of GCC economies at an average rate of 3.5 percent in 2025 and 4.2 percent in 2026, exceeding the global average of 3.3 percent and projected growth rates for advanced economies. However, the current need for economic diversification coincides with the accelerating global transition to renewable energy and electrification, a transition that is reshaping entire economies previously dependent on fossil fuels.
The World Bank reports that the non-oil sector grew by a “robust” 3.7 percent in 2024 and will remain a key driver of economic growth in the region, projecting growth rates of 3.4 percent and 3.5 percent for 2025 and 2026 respectively. This comes amid increasing interest in the GCC, both in business and tourism.
In 2025 gcc Islamic banks to witness more M&A activity
Islamic bank mergers and acquisitions are expected to rise in the GCC in the short to medium term, driven by the search for competitive advantage to access growth opportunities and build low-cost deposits, according Fitch Ratings.
“The region is over-banked, and therefore we expect consolidation to continue in all countries,” Redmond Ramsdale, Head of Middle East Bank Ratings and Islamic Banking at Fitch Ratings, told Zawya. “Bahrain, in particular, provides opportunities for M&A, as fragmentation [there] is greater than [in its] regional peers, with a large number of banks resulting in strong competition and weak pricing power. The Bahraini authorities are supportive of M&A, but sound profitability and a lack of common shareholders often prevent tie-ups.”
According to Ramsdale, newer and smaller Islamic banks are more vulnerable to M&A due to weaker franchises, weaker pricing power, higher funding costs and thinner capital buffers.
“Nevertheless, a lot of historic M&A has been about creating new Islamic national or regional champions, as with Kuwait Finance House’s acquisition of Ahli United Bank. We would expect this to continue to be the case,” he said.
In 2022, Kuwait Finance House (KFH), Kuwait’s largest Islamic lender, acquired Ahli United Bank (AUB), a Bahrain-based conventional bank, for $11.6 billion, giving a boost to the kingdom’s Islamic banking sector.