GCC states achieve 7.3% GDP growth led by non-oil sector expansion

Member states of the Gulf Cooperation Council have recorded a 7.3 percent growth in their gross domestic product for 2022 and a 4.8 percent increase in the non-oil sector, a senior administrator revealed.

GCC Secretary-General Jassim Mohammed Al-Budaiwi disclosed the growth rate during the meeting of Arab governors with the World Bank Group President Ajay Banga, reported the Saudi Press Agency.

This meeting took place on the sidelines of the International Monetary Fund and WBG meetings in Marrakech, Morocco.

In his speech, Al-Budaiwi emphasized that the economic challenges posed a significant threat to their shared goal of a world free from poverty, characterized by sustainable development and shared prosperity.

He pointed out that the global economy is navigating a path fraught with risks.

The WBG anticipates a substantial slowdown in global economic growth in the coming years.

Al-Budaiwi underscored that tackling international challenges requires a commitment to shared values and objectives.

Recognizing that global interconnectedness demands cooperation and collaboration, he stressed that worldwide economic challenges necessitate sustainable solutions that can alleviate the impacts of these threats.

These solutions rely on collective efforts and measures taken by the international community in collaboration with global financial institutions and bilateral and multilateral agreements between nations and multinational organizations.

Al-Budaiwi commended the GCC countries’ progress in structural reforms to address economic challenges. These reforms have positively impacted the economy, improving the business climate, enhancing competitiveness and increasing female workforce participation.

Significantly, the non-oil sector experienced a 4.8 percent jump in 2022.

The GCC’s ability to navigate and thrive amid global economic uncertainties highlights the importance of international cooperation and concerted efforts in addressing shared challenges.

Al-Budaiwi emphasized that the successful hosting of the 2022 FIFA World Cup in Qatar elevated tourism and infrastructure and served as a platform to spotlight the region globally.

He also noted that the UAE will host the upcoming UN climate change talks this year, the first of its kind in the Gulf region, offering another opportunity to demonstrate the countries’ commitments and contributions to addressing global challenges.

He expressed the secretariat’s anticipation to collaborate closely with the recently established regional office of the IMF in Riyadh and its central finance center in Kuwait to bolster the engagement of GCC countries with the organization.

On Oct. 2, Al-Budaiwi also highlighted the importance of strengthening the prospects of strategic partnership relations between the GCC and China.

The statement was made when he received the Chinese Ambassador to Saudi Arabia, Chen Weiqing, in Riyadh.

The two sides discussed a mechanism for following up on the outcomes of the statement issued by the Riyadh Summit for Cooperation and Development held in December 2022, which aims to strengthen the existing strategic partnership between the GCC and China.