Ministers discuss economy ahead of summit
Foreign ministers of the six Gulf Cooperation Council states met in Bahrain’s capital on Sunday to discuss economic integration on the eve of the annual GCC summit, a diplomatic source said.
The meeting was held behind closed doors and focused on “the complementary nature of the six members,” whose overall GDP in 2011 amounted to 1.371 billion dollars, the source said.
The GCC states — Bahrain, Kuwait, Oman, Qatar, UAE and Saudi Arabia — have a joint population of around 46 million, the majority of whom are foreigners.
In 2003, they launched a symbolic customs union which has been beset with problems, failing to meet its target date of 2005, with the transition period systematically extended.
GCC economy forecast to contract 6.4pc in 2026
The GCC economy is forecast to contract by 6.4 percent this year, after renewed escalation in the regional conflict disrupted Saudi Arabia’s oil export infrastructure, including damage to the critical East-West pipeline, and pushed Brent crude above $100 a barrel. A rebound of 5.8 percent is projected for 2027 as energy markets gradually stabilise, according to the latest Economic Insight: Middle East Q3 2026 report, published presently by ICAEW and Oxford Economics. The GCC’s hydrocarbon sector is forecast to rebound by 25.9 percent in 2027, following a 26.9 percent contraction this year, as oil markets gradually stabilise. Saudi Arabia’s economy is projected to return to growth of 4.7 percent in 2027, following a 4.6 percent contraction this year, with the swing reflecting an expected gradual normalisation in the oil sector as this year’s disruption eases. The UAE is set for a strong 2027, with growth forecast at 6.6 percent, reversing a 1.5 percent contraction this year.
UAE’s fab calls for more private capital
An outcome paper setting out how stronger financial structures can help scale sustainable ocean solutions and support global growth and resilience has been published.
First Abu Dhabi Bank (FAB), the UAE’s global bank, has published The Ocean Economy: Becoming the World’s Fifth-Largest Economy reflecting the outcomes of a roundtable convened by FAB in collaboration with the World Economic Forum during London Climate Action Week.
It examines the financial architecture needed to protect and restore the ocean and mobilise capital at scale. The initiative builds on FAB’s broader sustainable finance agenda and its focus on convening partners, supporting clients and advancing blue-finance market development.
The ocean economy has doubled in real terms over the past 25 years, rising from $1.3 trillion in gross value added in 1995 to $2.6 trillion in 2020.
UAE, Saudi Arabia lead digital economy
The UAE and Saudi Arabia are at the forefront of the Arab region’s digital-economy development, with both countries ranking among the five highest-performing markets in the 2026 Arab Digital Economy Index.
The UAE led the index with a score of 76.66 points, while Saudi Arabia scored 73.64 points.
Bahrain, Qatar and Oman completed the highest-performing group, with scores of 66.75, 66.66 and 65.98, respectively.
The ranking comes as Saudi Arabia continues to accelerate its digital transformation and shift toward electronic payments.
In April, the Saudi Central Bank said electronic payments accounted for 85 percent of total retail payments in 2025, up from 79 percent in 2024.
In the UAE, the digital payments and infrastructure market is projected to grow from $21.3 billion in 2025 to $39.2 billion in 2033, representing a compound annual growth rate of 7.9 percent, according to Metastat Insights.
UAE poised for swift economic rebound
The UAE economy is expected to recover more quickly from the current wave of regional disruptions than its Gulf counterparts, supported by its diversified growth model, strong policy framework and robust institutional foundations, according to experts.
While Gulf economies are projected to experience a sharper-than-anticipated slowdown in 2026 amid geopolitical tensions, elevated energy prices and disruptions to trade and supply chains, the UAE is widely regarded as being better positioned to absorb these shocks and return to stronger growth in 2027.
Regional economies continue to operate in a challenging environment as shipping movements through the Strait of Hormuz and Bab Al Mandab remain constrained. Repeated disruptions to maritime trade routes, renewed hostilities and pipeline outages have pushed Brent crude prices back above $100 a barrel in September after reaching a 2026 peak of $126.41 in April.
Oman participates in preparatory meeting
The Sultanate of Oman participated, via video conferencing, in the sixth preparatory meeting of the GCC Investment Undersecretaries Committee, in preparation for the meetings of the ministerial committees of the Ministers of Commerce, Industry and Investment of the GCC states, scheduled to be held in the Kingdom of Bahrain.
The Sultanate of Oman was represented at the meeting by Ibtisam Ahmed Al Farooji, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Investment Promotion.
GCC strengthened adaptation capabilities, solidifying status
Secretary-General of the Gulf Cooperation Council (GCC) Jasem Mohamed Albudaiwi affirmed Tuesday at a UNGA 81 panel that member states have built a strong economic foundation, cementing their position as a global investment destination and capital source.
Albudaiwi highlighted that the combined GCC economy stands at USD 2.4 trillion, with sovereign wealth funds exceeding USD 5 trillion, commercial bank assets near USD 3.9 trillion, and global merchandise trade reaching USD 1.6 trillion. These resources drive economic diversification across AI, clean energy, technology, logistics, and infrastructure.