GCC SWFs Assets Reach $4.4 Trillion by 2023-End

The total value of the assets of the sovereign wealth funds (SWFs) in the GCC region stood at $4.4 trillion, representing more than 34% of the total assets of the 100 largest SWFs in the world, GCC Secretary General Jassim Al-Badawi said.

Addressing the 84^th meeting of the members of the Governors of GCC Central Banks in Kuwait on Thursday, Al-Badawi said that the GCC member states were cooperating in all sectors including monetary and banking field by accelerating the pace of work to complete economic and development projects to reach the region’s economic unity, and enhance its position as a global financial, investment and economic hub.

The meeting was chaired by Kuwait Central Bank’s Governor Basel Ahmed Al Haroon, who is also President of the current session.

Al-Badawi explained that the challenges resulting from global economic trends in light of the current geopolitical tensions, which were reflected in the GCC economies, necessitated the importance of responding to these challenges and taking all necessary measures to mitigate their impact.

“The GCC countries have proven, in the most difficult and severe circumstances, their ability to overcome various challenges, thanks to the prudent policies they have adopted to overcome them,” he said.

GCC GDP

Furthermore, he reviewed some economic facts and statistics about the member states, noting that they collectively ranked 11^th globally in terms of GDP value, reaching $2.1 trillion in 2023, and contributing approximately 60.3% of the Arab region’s gross domestic product (GDP).

While the foreign direct investments (FDI) in the GCC reached around $649 billion by the end of 2023, representing about 30.7% of the GCC’s GDP, which is higher than the average of the G20 countries of 32.9%, the GCC financial markets accounted for 4.3% of the total market value of global financial markets in 2023, he averred.

“Total bank deposits in GCC region’s commercial banks amounted to more than $1.91 trillion at the end of 2023, an increase of 8.1% compared with the corresponding period in 2022, while the total foreign exchange reserves continued to grow, reaching about $747 billion by the end of 2023, with a growth rate of 4.4% compared to the previous year,” he said.

Al-Badawi also stressed that these statistics indicated that the GCC’s financial eco system, has been one of the most mature and successful experiences in the region, which has enabled it to have a competitive presence at the global and regional levels, and through competitive indicators in various economic and developmental aspects.