Brussels: Gulf Cooperation Council (GCC) Secretary General Jassem Al-Budaiwi affirmed that Gulf relations with the European Union are historic and embody the spirit of true partnership between the two sides. This statement was made during the opening of the 9th EU-GCC Business Forum, themed "Together for Shared Prosperity," and attended by His Highness Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, Prime Minister. The forum is set to conclude on Thursday.
According to Kuwait News Agency, Al-Budaiwi highlighted that Gulf-European relations were initially framed in the Cooperation Agreement signed in 1988, which established a robust framework for economic and political dialogue. This agreement opened broad horizons for cooperation in development, trade, investment, energy, environment, and education.
He further elaborated that to expand this partnership, the Joint Ministerial GCC-EU Council approved the Joint Action Plan for Cooperation for 2022-2027. This comprehensive plan includes political, economic, developmental, security, counter-terrorism, and cybersecurity initiatives.
Al-Budaiwi noted the significance of the 2024 GCC-EU Summit in Brussels, which reaffirmed the commitment to building a strategic trade and investment partnership and advancing towards a comprehensive free trade agreement.
He emphasized the determination of GCC countries, with their strategic location, political stability, and strong economies, to bolster their status as a promising economic power regionally and internationally.
Al-Budaiwi reviewed economic indicators showcasing GCC progress, including a GDP of approximately USD 2.3 trillion in 2024, ranking them 9th globally. The GCC countries contribute about 63 percent of the total Arab GDP.
He also highlighted that GCC sovereign wealth funds hold assets estimated at approximately USD 4.8 trillion, representing over 32 percent of the world's largest sovereign wealth funds' assets.
In the energy sector, GCC countries are leaders in oil production, with crude oil output exceeding 16 million barrels per day and reserves over 510 billion barrels. They are third globally in natural gas production and second in reserves.
Al-Budaiwi explained that economic relations between the GCC and the EU have grown steadily, reflecting mutual trust and potential. In 2024, trade volume reached approximately USD 197 billion, accounting for 12 percent of the GCC's total merchandise trade of USD 1.5 trillion.
He pointed out that the GCC is a prominent export market for the EU in energy, petrochemicals, metals, and technology. European direct investments in the GCC recorded a growing balance of approximately USD 285 billion in 2023, indicating deep economic interdependence and confidence in the Gulf business climate.