Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi affirmed that efforts to upgrade economic relations between the GCC States and the Hashemite Kingdom of Jordan are rooted in deep historical ties and a shared cultural heritage, reflecting the mutual desire of the wise leaderships on both sides to strengthen cooperation across all fields. Speaking at the First GCC-Jordanian Investment Conference, held at the Dead Sea in Jordan under the theme “Partnerships, Investment, Economic Integration,” Albudaiwi underscored that these initiatives respond to a firm conviction among GCC and Jordanian leaders regarding the necessity of deepening economic integration for the benefit of their countries and peoples. The conference, sponsored by King Abdullah II bin Al Hussein of the Hashemite Kingdom of Jordan, was attended by Jordan’s Minister of Investment Eng. Mothanna Gharaibeh, along with heads of chambers of commerce from the GCC states and Jordan, as well as a number of prominent businesspeople from both sides, according to the Saudi Press Agency (SPA).
The gathering marked a significant milestone in the evolving partnership between the GCC and Jordan, bringing together key decision-makers and private-sector leaders to explore new avenues for investment and trade. It also highlighted the institutional framework that has guided GCC-Jordanian relations for years, including the strategic partnership and the joint action plan for cooperation (2020-2025). As the region navigates a period of economic transformation, the conference served as a platform to reaffirm commitments and chart a course for deeper collaboration. How can such high-level dialogues translate into tangible benefits for citizens across the region?
Context and Background
What drives the enduring partnership between the GCC and Jordan? The relationship between the Gulf Cooperation Council and the Hashemite Kingdom of Jordan has long been anchored in fraternal ties and shared strategic interests. Albudaiwi noted that observers of GCC-Jordanian relations would clearly notice the depth of this historical relationship and the shared interests between the two sides. This bond has been institutionalized through the founding of the strategic partnership between the GCC states and Jordan and the adoption of the joint action plan for cooperation (2020-2025), which provides a structured roadmap for collaboration across political, security, and economic domains.
The GCC itself has a rich history of integration, having established a free trade area in 1983 and implemented a customs union at the beginning of January 2003. These milestones laid the groundwork for deeper economic citizenship among GCC member states, ensuring equality in movement, residence, work, ownership, and the pursuit of economic, investment, and service activities. 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, further solidifying the framework for regional economic integration. This progressive approach has not only benefited GCC citizens but also created a model for cooperation with neighboring countries like Jordan.
Albudaiwi’s remarks at the Dead Sea conference underscored that the GCC’s outreach to Jordan is a natural extension of its own integration experience. By sharing the benefits of its common market and customs union, the GCC aims to foster stability and prosperity in the broader region. The joint committees—totaling 15 in various economic, cultural, and social fields—demonstrate the breadth and depth of this cooperation. As the region faces evolving global challenges, the GCC-Jordan partnership stands as a testament to the power of collective action and shared vision. What lessons can other regions draw from this enduring alliance?
Key Details
What concrete outcomes emerged from the First GCC-Jordanian Investment Conference? In his address, Albudaiwi presented a comprehensive overview of the GCC’s economic strength, providing compelling statistics that underscore the bloc’s global standing. He stated that the total GDP of the GCC Member States reached $2.1 trillion in 2023, placing them collectively among the advanced countries in terms of GDP size. The market capitalization of Gulf financial markets exceeded $4.4 trillion by the end of 2023, ranking seventh among the world’s ten largest markets. Additionally, the total value of foreign reserves held by the GCC was approximately $747 billion at the end of 2023, with a growth rate of 4.4% compared to 2022.
Albudaiwi further highlighted that the total value of foreign direct investment into the GCC was about $649 billion at the end of 2022, marking an increase of 6.4% compared to the end of 2021. 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 $4.4 trillion. The size of the digital economy in the GCC is estimated at around $118 billion for 2022, and the GCC countries achieved the top six positions in the Arab Digital Economy Index for 2024. These figures illustrate the GCC’s robust economic fundamentals and its potential as a partner for Jordan.
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 $36 billion. The total exports from the GCC to Jordan were more than $26 billion, while the value of imports from Jordan to the GCC was $9.6 billion. Albudaiwi expressed optimism for enhancing trade facilitation and stimulating the potential for increased trade exchanges, in addition to promoting cooperation and investment in service trade, e-commerce, financial technologies, tourism, and the development of digital trade. He also noted that Gulf investment in the Amman Stock Exchange ranks first among Arab and foreign investments in publicly traded companies, exceeding $4 billion, while Jordanian investments in the Gulf financial markets exceed $700 million (2021). These indicators reflect the immense potential that can be achieved through enhanced cooperation and economic integration.
International and Regional Impact
How does the GCC-Jordan partnership resonate beyond the immediate region? The strengthening of economic ties between the GCC and Jordan carries significant implications for the broader Middle East and beyond. By fostering economic integration, the two sides contribute to regional stability and prosperity, creating a model for cross-border cooperation that can inspire other nations. The conference’s theme, “Partnerships, Investment, Economic Integration,” underscores the shared commitment to these goals. As global economic dynamics shift, such alliances become increasingly vital for sustaining growth and resilience.
Moreover, the GCC’s role as a driver of economic development in the region is further solidified through its engagement with Jordan. The participation of heads of chambers of commerce and businesspeople from both sides signals a strong private-sector interest in leveraging new opportunities. This collaboration can lead to increased investments in key sectors such as technology, tourism, and renewable energy, aligning with the diversification goals of both the GCC and Jordan. On the international stage, a united and economically vibrant GCC-Jordan bloc can amplify its voice on global issues, from trade to climate change. What role will this partnership play in shaping the future of the Middle East?
Economic and Strategic Significance
Why does the GCC-Jordan economic relationship matter now more than ever? The economic statistics presented by Albudaiwi reveal a relationship with substantial momentum. The GCC’s combined GDP of $2.1 trillion and its sovereign wealth funds’ assets of $4.4 trillion position it as a major global investor. Jordan, with its strategic location and skilled workforce, offers a complementary market for GCC investments. The $4 billion in Gulf investments in the Amman Stock Exchange and the $700 million in Jordanian investments in Gulf markets demonstrate a two-way flow of capital that strengthens both economies.
Furthermore, the focus on digital trade, financial technologies, and e-commerce reflects a forward-looking approach that aligns with the GCC’s digital transformation agenda. The GCC’s digital economy, valued at $118 billion in 2022, and its top rankings in the Arab Digital Economy Index for 2024, highlight its readiness to embrace innovation. By partnering with Jordan, the GCC can extend its digital footprint and foster a more integrated regional digital market. This strategic alignment not only boosts economic growth but also enhances the region’s competitiveness on a global scale. How can these synergies be maximized to benefit future generations?
Vision 2030 Alignment
How does the GCC-Jordan partnership align with Saudi Arabia’s Vision 2030? Saudi Arabia, as a key member of the GCC, plays a pivotal role in advancing the region’s economic integration. Vision 2030, the Kingdom’s ambitious roadmap for diversification and modernization, emphasizes the importance of international partnerships and economic diplomacy. The GCC-Jordan Investment Conference and the broader strategic partnership between the GCC and Jordan are fully consistent with Vision 2030’s objectives of enhancing non-oil trade, attracting foreign investment, and fostering regional stability.
Under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Arabia has consistently supported initiatives that strengthen ties with Jordan and other Arab nations. The Kingdom’s own economic reforms, including the development of giga-projects like NEOM and the expansion of the Public Investment Fund (PIF), have created new opportunities for collaboration. By working together, the GCC and Jordan can leverage their combined strengths to achieve sustainable development and prosperity, in line with Vision 2030’s goal of a vibrant society and a thriving economy. As Albudaiwi emphasized, both sides possess all the elements for the success of the desired economic relations, and the historic opportunity before them must be seized to benefit their peoples and support stability and prosperity in the region.
20 Questions
Q1. What was the main message of GCC Secretary-General Jasem Albudaiwi at the First GCC-Jordanian Investment Conference?
A1. Albudaiwi emphasized that efforts to enhance GCC-Jordan economic relations stem from deep historical ties and a shared cultural heritage, reflecting the mutual desire of leaderships on both sides to strengthen cooperation across all fields.
Q2. Where and when did the First GCC-Jordanian Investment Conference take place?
A2. The conference was held at the Dead Sea in Jordan on December 4, 2024, under the patronage of King Abdullah II bin Al Hussein, with the theme “Partnerships, Investment, Economic Integration.”
Q3. Who attended the conference alongside Albudaiwi?
A3. Attendees included Jordan’s Minister of Investment Eng. Mothanna Gharaibeh, heads of chambers of commerce from the GCC states and Jordan, and numerous businesspeople from both sides.
Q4. What is the joint action plan for cooperation between the GCC and Jordan?
A4. It is a structured roadmap for collaboration (2020-2025) that institutionalizes the strategic partnership between the GCC states and Jordan across political, security, and economic domains.
Q5. What economic milestones has the GCC achieved in its integration journey?
A5. The GCC established a free trade area in 1983, implemented a customs union in January 2003, and launched the Gulf Common Market in January 2008, fostering economic citizenship among member states.
Q6. What was the total GDP of the GCC Member States in 2023?
A6. The total GDP reached $2.1 trillion in 2023, placing the GCC collectively among the advanced countries in terms of GDP size.
Q7. How large is the market capitalization of Gulf financial markets?
A7. It exceeded $4.4 trillion by the end of 2023, ranking seventh among the world’s ten largest markets.
Q8. What is the value of foreign reserves held by the GCC?
A8. The total value of foreign reserves was approximately $747 billion at the end of 2023, with a growth rate of 4.4% compared to 2022.
Q9. How much foreign direct investment did the GCC attract by the end of 2022?
A9. The total value of foreign direct investment into the GCC was about $649 billion at the end of 2022, an increase of 6.4% compared to the end of 2021.
Q10. What share of global sovereign wealth fund assets do GCC funds represent?
A10. GCC sovereign wealth funds represent approximately 34% of the total assets of the world’s largest 100 sovereign funds, with financial assets estimated at around $4.4 trillion.
Q11. What is the size of the GCC’s digital economy?
A11. The digital economy in the GCC is estimated at around $118 billion for 2022, and GCC countries achieved the top six positions in the Arab Digital Economy Index for 2024.
Q12. What was the volume of trade between the GCC and Jordan from 2020 to 2023?
A12. The volume of trade exceeded $36 billion, with GCC exports to Jordan more than $26 billion and imports from Jordan to the GCC at $9.6 billion.
Q13. How significant is Gulf investment in the Amman Stock Exchange?
A13. Gulf investment in the Amman Stock Exchange ranks first among Arab and foreign investments in publicly traded companies, exceeding $4 billion.
Q14. What is the value of Jordanian investments in Gulf financial markets?
A14. Jordanian investments in the Gulf financial markets exceed $700 million as of 2021, reflecting a two-way flow of capital.
Q15. How many joint committees exist between the GCC and Jordan?
A15. There are 15 joint committees in various economic, cultural, and social fields, demonstrating the breadth and depth of cooperation.
Q16. What sectors did Albudaiwi identify for enhanced cooperation?
A16. He highlighted service trade, e-commerce, financial technologies, tourism, and digital trade as key areas for promoting cooperation and investment between the two sides.
Q17. How does the GCC-Jordan partnership contribute to regional stability?
A17. By fostering economic integration and shared prosperity, the partnership enhances political and security coordination, creating a model for cross-border cooperation that supports stability in the Middle East.
Q18. What is the significance of the GCC’s economic citizenship for member states?
A18. Economic citizenship ensures equality in movement, residence, work, ownership, and access to social and health services, treating GCC citizens equally across member states without discrimination.
Q19. How does the GCC-Jordan partnership align with Saudi Arabia’s Vision 2030?
A19. It aligns with Vision 2030’s goals of economic diversification, international partnerships, and regional stability, supporting Saudi Arabia’s efforts to enhance non-oil trade and attract investment.
Q20. What did Albudaiwi say about the future of GCC-Jordan economic relations?
A20. He expressed optimism for enhancing trade facilitation and stimulating increased trade exchanges, emphasizing that both sides possess all elements for success and face a historic opportunity to strengthen partnerships.
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