GCC secretary general stresses importance of Gulf economic integration
Secretary General of the Gulf Cooperation Council (GCC), Jasem Mohamed Albudaiwi, affirmed that gulf economic integration is a fundamental pillar for safeguarding developmental gains and addressing challenges amidst exceptional regional circumstances.
This came during the eighth extraordinary meeting of the Permanent Preparatory Committee at the ministerial level of the Economic and Development Affairs Authority of the GCC, held on Monday via video conference.
At the beginning of the meeting, the Secretary General stated that this extraordinary meeting was being held at a critical juncture due to the treacherous Iranian attacks targeting the GCC states. He noted that these attacks necessitate a shift from traditional coordination to a higher level of practical integration and effective response, especially given that the escalating challenges facing the region are no longer a passing circumstance, but rather a true test of its ability to protect its achievements and ensure the continued efficient and stable operation of its vital sectors.
GCC economies are facing the problems of war
How long will Gulf States bleed for war on Iran that the United States and Israel are waging? That’s a question a recent Newsweek article posed. According to the reporting, specialists from all six Gulf Cooperation Council (GCC) states describe a “growing frustration with the U.S. approach to the war with Iran and a perception of Trump prioritizing Israel.”
What The Guardian has called a “worst nightmare,” the war has impacted the GCC states, including Saudi Arabia and the UAE, to such a degree that they are consumed with fury as they absorb the shock of a conflict they did not want. The closure of the Strait of Hormuz and the Iranian attacks on energy infrastructure have placed particular pressure on regional economies. For the GCC economies, costs like these don’t have any corresponding political gains. The GCC’s bargain—American bases in exchange for defense and security—doesn’t look quite so beneficial at the moment.
Further, the GCC is a strategic hub of aviation, tourism, and investment, and these industries are suffering because of the war. The Gulf states were aware of the implications before the war started. Once Israeli struck Doha in September without any reaction from the Trump administration, it served as both the “turning point” and the writing on the wall.
Oman’s non-oil exports rise 11.4pc in early this year
Oman’s non-oil exports made a strong start to 2026, rising 11.4 percent year-on-year in the first two months to RO1.129bn, compared with RO1.013bn in the same period of 2025, according to preliminary data released by the National Centre for Statistics and Information (NCSI).
The growth was driven by broad-based improvements across key product categories, with mineral products emerging as the standout performer. Exports of mineral products surged 15.4 percent to RO295mn during January–February 2026, up from RO256mn a year earlier. Base metals and their articles also recorded steady growth of 8.9 percent to RO250mn, compared with RO229mn in the first two months of 2025.
A notable increase was seen in exports of electrical machinery and equipment, which rose 9.9 percent year-on-year to RO72mn, highlighting growing global demand in this segment.
Meanwhile, exports of chemical products edged up 0.7 percent to RO127mn in the first two months of the year, while plastics and rubber products increased marginally by 0.3 percent to RO149mn.
The NCSI data indicate resilient external trade performance in Oman’s non-oil sector at the start of the year, supported by diversification efforts and improving demand for Omani products in regional and international markets.
GCC economies stay resilient
Growth across the GCC economies is expected to moderate in 2026 as geopolitical tensions and disruptions to energy trade routes weigh on the wider Middle East and North Africa (Mena) region, but forecasts by the International Monetary Fund and other global institutions suggest the bloc’s fundamentals remain strong enough to support a recovery path over the medium term.
In its latest World Economic Outlook, the IMF cut Mena’s real GDP growth forecast for this year to 1.1 percent — a downward revision of 2.8 percentage points from its January estimate — reflecting the economic fallout from the US-Iran conflict and supply disruptions linked to the Strait of Hormuz, a key artery for global energy trade.
Despite the downgrade, the GCC’s diversified policy frameworks, infrastructure investment pipelines and strong fiscal buffers are expected to cushion the impact compared with several other regional economies.
Saudi Arabia, the region’s largest economy, is projected to expand by 3.1 percent this year after only a modest downward revision of about 1.4 percentage points.
Cultural fusion could make GCC the next great financial hub?
The world’s leading financial centres are not built on capital alone. They are built on the constant exchange of ideas—on people from different systems learning how to think, decide, and operate together. That is where the GCC’s real edge is emerging. Not just in its wealth or infrastructure, but in its cultural fusion. You can see it in how business actually gets done across the Gulf presently. In Dubai, Abu Dhabi, Riyadh and Doha, it is increasingly common to find investment discussions shaped by Asian growth instincts, European regulatory discipline, and Middle Eastern relationship-driven decision-making—all in the same room. This is not diversity as a talking point. It is diversity embedded in judgment. Decisions are becoming more globally calibrated. Risk is being assessed through multiple lenses. Opportunities are being understood not just in isolation, but in how they connect across markets. The result is a style of financial thinking that feels less siloed and more aligned with how capital now moves in the real world.