Gulf region tipped to withstand coming global headwinds
Next 6 months will be difficult but GCC economies will stay strong: Saudi Finance Minister Mohammed Al-Jadaan
Worldwide, we need to work to ensure that there is more collaboration and cooperation to bring about stability.
The world faces a very difficult six months as economic challenges, including high interest rates and rising inflation, persist in most countries, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan warned on Wednesday.
Speaking at the Future Investment Initiative forum in Riyadh, he said the Gulf region will nonetheless remain stable amid these economic headwinds, adding that the Kingdom will support other regional countries that face challenges during these difficult times.
“The region is largely split into two areas,” said Al-Jadaan. “One is the Gulf region and for them, the next six months, and possibly the next six years, will be very good. The wider region is going to be very difficult, and it is our role to help that wider region.
“Worldwide, I think, we need to work to ensure that there is more collaboration and cooperation to bring about stability and that is what we are doing.”
Al-Jadaan noted that the world needs stability and predictability to ensure the availability of macrofinance and investments. He said climate change is one of the serious issues the world is facing and the issue cannot be resolved through the efforts of any one country alone. All countries should cooperate and collaborate to resolve climate-related issues, he added.
“The world is trying to deal with this (climate change),”
Al-Jadaan said. “The multilateral institutions are trying to deal with climate change impacts. In the region, we are making a lot of efforts to reduce emissions, to deal with climate change and to invest in renewables.”
Shaikh Salman bin Khalifa Al-Khalifa, Bahrain’s minister of finance and national economy, said that the world is facing a multitude of challenges.
“Inflation is driven by the disruption of the supply chain, compounded by the conflict in Europe. And now it is a period where there is food-price inflation, energy-price inflation, and that is a big issue,” he said. He noted, however, that one positive aspect, which offers some hope, is a reduction in shipping prices. Steven Mnuchin, managing partner at Liberty Strategic Capital, said that energy security also forms a part of national security.
“I believe that over the next five years we are going to see tremendous advancements in carbon-recapture technologies,” he said.
“The short-term solution to climate change is really around carbon recapture. This is obviously a global issue and it needs to be dealt with.”