GCC is 'Open to the World' & Seeks Long-Term Investment Partnerships: Secretary-General

The Gulf Cooperation Council (GCC) economic group continues to be a top international destination for foreign direct investment despite ongoing geopolitical instability, disruptions to maritime logistics, and volatility in the world's oil markets.

Notably, GCC Secretary General Jasem Al Budaiwi stressed to attendees at the AIM Congress 2026 in Dubai that traditional commercial prospects are no longer enough to capture global capital in the face of growing systemic dangers.

“Opportunities no longer are sufficient to attract investment, and, as variables and risks multiply, the strength of an economy, the strength of its institutions, the clarity of its directions and its ability to adapt to change become factors in guiding investment decisions,” Al Budaiwi stated.

He noted that these foundational strength factors are crucial for the six-member alliance's development, demonstrating stability in the region despite challenges in shipping, supply chain, and energy markets. Gulf states have successfully maintained operational stability and market continuity.

Persistent Energy Fluctuation & Regional Disruption

The protracted battle between the United States, Israel, and Iran, now in its seventh month, has caused tremendous geopolitical strain throughout the Middle East.

Moreover, severe disruptions have impacted infrastructure, aviation, hospitality, and broader business, while the ongoing blockade of the Strait of Hormuz—a transit bottleneck that once accounted for one-fifth of world oil and gas supply—continues to disrupt international energy supply chains.

Gulf economies are demonstrating positive growth momentum and structural durability amid market volatility, despite the absence of a formal resolution affecting regional operations, according to the International Monetary Fund.

Regional Integration & Interconnectedness

The economic resilience of the Gulf is largely due to unified regional initiatives aimed at creating an integrated trade and investment system. Mr. Al Budaiwi noted that the GCC states should now be seen as an interconnected economic system rather than separate markets, which enhances their growth potential and ability to attract foreign direct investment.

Meanwhile, standing among the world's top ten economic alliances, the GCC boasts a cumulative GDP of $2.4 trillion, backed by sovereign wealth funds exceeding $5 trillion and a banking sector with $3.9 trillion in assets projected for 2025.

Member states have diversified markets through national development plans, encouraging private sector involvement and advancing investments in technology, AI, and infrastructure.

FDI Dynamics & Capital Allocation

The GCC bloc is witnessing a significant integration highlighted by a substantial rise in cross-border capital movement, with total foreign direct investment inflows reaching $792.7 billion last year.

According to Mr. Al Budaiwi, intra-Gulf investment made up nearly 22% of this total, amounting to $171.4 billion. This trend indicates that Gulf capital is actively transferred among member countries, which enhances building projects, business networks, and cross-border supply chains.

The UAE's Open Strategic Partnership Framework

In his keynote address, Dr. Thani Al Zeyoudi, the UAE Minister of Foreign Trade, underscored the country's proactive measures in response to evolving global trade dynamics and the reconfiguration of economic alliances. He pointed out that contemporary investors seek returns, flexibility, efficiency, and market access simultaneously.

Besides, Dr. Al Zeyoudi underscored that the UAE has been preparing for these changes by fostering an open and resilient partnership economy, utilising trade and investment as mechanisms to establish new connections.

The UAE experienced a 6 per cent rise in foreign direct investment (FDI) inflows, reaching $48.24 billion in 2025, thus retaining its status as the leading FDI recipient in the Middle East and ranking ninth worldwide, as reported by UNCTAD. Additionally, non-oil foreign trade surpassed $1.9 trillion in the first half of 2026.

Dr. Al Zeyoudi pointed out that these figures mirror strong global confidence in the UAE's institutional environment, highlighting the nation's economic stability, policy clarity, and legislative efficiency.

Strategic Position of Ras Al Khaimah

Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, highlighted sub-national economic performance, presenting the emirate as a premier destination for targeted international investment, citing natural advantages and strategic positioning.

“Manufacturing, tourism, logistics, real estate and emerging industries are now part of a development model built on stability, agility and trust,” Sheikh Saud said.

In closing, with approximately 73,000 corporate entities from more than 100 countries, the emirate's business community exhibits significant global commercial confidence in its nimble, forward-thinking economy.

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