HE GCCSG: Efforts to Upgrade GCC-Jordan Economic Links Stem from Deep Historical Ties

His Excellency Mr Jasem Mohamed Albudaiwi, Secretary General of the Gulf Cooperation Council (GCC), stated that efforts to enhance economic relations between the GCC States and Jordan are grounded in deep historical ties and a shared cultural heritage, stressing that these initiatives respond to the mutual desire and strong conviction among the wise leaderships on both sides regarding the necessity of strengthening cooperation in all fields.

This was stated during HE the Secretary General’s speech at the First GCC-Jordanian Investment Conference, themed “Partnerships, Investment, Economic Integration”, which was graciously sponsored by His Majesty King Abdullah II bin Al Hussein, King of the Hashemite Kingdom of Jordan, and attended by Eng. Mothana Al Gharaibeh, Minister of Investment of the Hashemite Kingdom of Jordan, along with heads of the chambers of commerce from the GCC states and Jordan, as well as a number of businesspeople from both sides, on Wednesday (December 4, 2024) at the Dead Sea in the Hashemite Kingdom of Jordan.

At the outset of his speech, His Excellency extended the highest expressions of gratitude and appreciation to His Majesty King Abdullah II bin Al Hussein for his generous sponsorship of this conference and for the continued facilities and support that the Hashemite Kingdom of Jordan provides to implement the joint action plans agreed upon within the framework of the strategic partnership between the GCC and the Hashemite Kingdom of Jordan, expressing hope for further ties, cooperation, and integration to achieve mutual interests for both parties.

“The observer of the GCC-Jordanian relations would clearly notice the depth of this historical relationship and the shared interests between the GCC states and Jordan. This relationship has been established for a long time and has been institutionalised through the founding of the strategic partnership between the GCC states and the Hashemite Kingdom of Jordan, and the adoption of the joint action plan for cooperation between both sides (2020-2025). This is rooted in deep historical ties and a shared cultural heritage, responding to the mutual desire and the firm conviction among the wise leaderships on both sides regarding the need to strengthen cooperation across all fields, in pursuit of common goals and interests for our countries and peoples. This is reaffirmed in the fraternal relations between the GCC Member States and the Hashemite Kingdom of Jordan, which have contributed to enhancing political, security, and economic coordination between the two sides,” HE the Secretary General mentioned in his speech.

Elaborating further, he cited that this was emphasised by Their Majesties and Highnesses, the leaders of the GCC states, in Al Ula Statement issued in January 2021, supporting security and stability and enhancing development in the Hashemite Kingdom of Jordan, while calling for intensified efforts to implement the joint action plans agreed upon within the framework of the strategic partnership between the GCC and the Hashemite Kingdom of Jordan.

Moreover, His Excellency noted that the GCC states, through integrated work within the framework of the GCC, have successfully established a free trade area in 1983, implemented a customs union at the beginning of January 2003, and deepened economic citizenship among the GCC states. He explained that this means equality in movement, residence, work, ownership, and the pursuit of economic, investment, and service activities, as well as the freedom of capital movement among the GCC member states, tax treatment, ownership and trading of shares, the establishment of companies, and access to social and health services in all GCC Member States, adding that GCC citizens in any of the member states should be treated equally to their own citizens without discrimination, while the Supreme Council announced the establishment of the Gulf Common Market at the summit held in Doha in December 2007, effective from the beginning of January 2008.

Furthermore, His Excellency also presented some economic statistics regarding the GCC, stating: “Firstly, the total GDP of the GCC Member States reached USD 2.1 trillion in 2023, placing them collectively among the advanced countries in terms of GDP size. Secondly, the market capitalisation of the Gulf financial markets exceeded USD 4.4 trillion by the end of 2023, ranking seventh among the world’s 10 largest markets. Thirdly, the total value of foreign reserves held by the GCC was approximately USD 747 billion at the end of 2023, with a growth rate of 4.4% compared to 2022.”

“Fourthly, the total value of foreign direct investment into the GCC was about USD 649 billion at the end of 2022, marking an increase of 6.4% compared to the end of 2021. Fifthly, the total assets of sovereign wealth funds in the GCC represent approximately 34% of the total assets of the world’s largest 100 sovereign funds, with the financial assets of member states’ sovereign funds estimated at around USD 4.4 trillion. Sixthly, the size of the digital economy in the GCC is estimated at around USD 118 billion for 2022,” he said, adding that the GCC countries also achieved the top six positions in the Arab Digital Economy Index for 2024.

Additionally, His Excellency noted in his speech that trade relations between the GCC states and Jordan have witnessed significant growth over recent years, with the volume of trade between 2020 and 2023 exceeding USD 36 billion, and the total exports from the GCC to Jordan were more than USD 26 billion, while the value of imports from Jordan to the GCC was USD 9.6 billion, with expectations of increased trade volumes in the coming years due to ongoing economic cooperation between the GCC and Jordan.

HE the Secretary General expressed his optimism for enhancing trade facilitation and stimulating the potential for increased trade exchanges between both sides, in addition to promoting cooperation and investment in service trade, e-commerce, financial technologies, tourism and the development of digital trade between the two parties. He also indicated that, in terms of investment, Gulf investment in the Amman Stock Exchange ranks first among Arab and foreign investments in publicly traded companies in the Amman Stock Exchange, exceeding USD 4 billion.

His Excellency added: “Meanwhile, Jordanian investments in the Gulf financial markets exceed USD 700 million (2021). These figures and indicators reflect the immense potential that can be achieved through enhanced cooperation and economic integration. Today, we are faced with a historical opportunity to strengthen our partnerships and expand our collaborative efforts to benefit our peoples and support stability and prosperity in our region. This vision has been pursued by the GCC with the Hashemite Kingdom of Jordan through joint committees that have reached a total of 15 committees in various economic, cultural and social fields.”

In conclusion, HE Mr Albudaiwi emphasised the importance of working diligently to strengthen and enhance the strategic GCC-Jordanian relations so that the peoples can benefit, underlining that both sides possess all the elements for the success of the desired economic relations between them.