Post by : Maya Rahman

The 46th Gulf Cooperation Council Summit is currently taking place in Bahrain, gathering leaders from all GCC member states. This significant event marks a shift towards comprehensive regional integration, with the overarching goal of fostering closer collaboration across various sectors to secure a prosperous future.

Throughout their shared history, the GCC nations have emerged as a formidable regional bloc with notable influence on the global stage. Efforts to enhance collaborative initiatives in the domains of economy, energy, sustainability, and development have significantly contributed to their long-term progress and stronger partnerships.

As of 2024, the GCC's economy boasts a valuation exceeding USD 2.3 trillion, reflecting robust financial health. Average per capita income surpasses USD 38,000, indicative of steady growth trajectories. Notably, the non-oil sector now constitutes 76% of the entire economy, underscoring successful diversification efforts.

In terms of financial performance, GCC markets reported a total market value of USD 4.2 trillion by the end of last year. Additionally, commercial bank deposits rose to USD 2.1 trillion, while bank asset valuations climbed to USD 3.5 trillion, evidencing the resilience of the regional financial sector.

Inter-GCC trade has also seen favorable advancements. A merchandise trade surplus of USD 109.7 billion was recorded in 2024, placing the region among the globe's top performers. Trade among GCC nations reached USD 146 billion, marking a 10% increase over 2023, highlighting the growing synergy among these countries.

On the global trade front, the GCC reached a noteworthy merchandise trade value of USD 1.6 trillion in 2024, representing 3.2% of worldwide trade flows. Exports alone were valued at USD 850 billion, solidifying its role as a key player in international trade.

The energy sector continues to be vital for the GCC. The region possesses 511.9 billion barrels of crude oil, accounting for approximately 32.7% of global reserves, with production levels reaching 16.1 million barrels per day, or 21.8% of the world's output. In natural gas, GCC members control 44.3 trillion cubic meters of reserves, equating to 21.2% of the total global reserves.

Tourism growth is noteworthy as well. In 2024, approximately 1.7 million individuals were employed in tourism, a sector that experienced a 2.8% rise compared to the previous year. With the number of operational hotels reaching 11,200, tourism contributed USD 145.8 billion to the economy, achieving 64% of its targeted output by 2030.

Environmental sustainability initiatives are also in focus. GCC nations aim to significantly reduce landfill waste by 60–90% between 2030 and 2040, with ongoing participation in the Basel Convention to monitor hazardous waste movement. The waste management market within the GCC is projected to hit USD 95 billion by 2025–2032.

In terms of ecology, GCC states have committed 15% of their territory as natural reserves and have allocated USD 300 million to lower carbon emissions through the GCC power grid initiative, in addition to promoting the Middle East Green Initiative, aiming to plant 50 billion trees.

Renewable energy also stands out as a priority, with GCC countries boasting 14.2 gigawatts of renewable energy capacity and a target to source over 50% of electricity from renewables by 2050. Investments amounting to USD 11 billion in global green hydrogen and ammonia projects reflect their commitment.

Enhancements in social welfare continue, encompassing roughly 950,000 retirees with more than 450,000 dependents benefiting from established pension systems. Insurance payouts have exceeded USD 450 billion, while insured contributions surpass USD 15 billion.

Healthcare advancements show promise as well, with 882 hospitals operating across the region and healthcare expenditure anticipated to reach USD 159 billion by 2029. Notably, the digital health sector is expected to generate USD 1.8 billion in revenue by 2025.

These accomplishments reflect the GCC's ongoing commitment to collaboration, innovation, and sustainable development for the benefit of the region and its populace.

#Business News #GCC News #Gulf News