SAUDI ARABIA: Finance ministers of the Gulf Cooperation Council hold their 97th meeting in the Saudi capital of Riyadh

Record ID: 189243

  • Title: SAUDI ARABIA: Finance ministers of the Gulf Cooperation Council hold their 97th meeting in the Saudi capital of Riyadh
  • Date: 6th October 2013
  • Summary: RIYADH, SAUDI ARABIA (OCTOBER 5, 2013) (REUTERS) GCC FINANCE MINISTERS, DEPUTY MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND, NEMAT SHAFIK, ARRIVING INSIDE GCC HEADQUARTERS CLOSE OF GCC LOGO GCC FINANCE MINISTERS AND SHAFIK POSING FOR OFFICIAL PHOTOGRAPH GCC COUNTRY FLAGS WIDE OF MEETING GCC SECRETARY GENERAL, ABDULATIF AL-ZAYANI, SEATED FINANCE MINISTERS SEATED SHAFIK SEATED, PREPARING TO SPEAK (SOUNDBITE ) (English) NEMAT SHAFIK, DEPUTY MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND, SAYING "The contribution of the GCC countries to the world economy is vital, you are pillars of stability in global oil markets at a time when many other pillars are very shaky. The remittance outflows from your economy and the generous financial assistant that you provide in the rejoin, but also globally, are important and critical to many countries around the world." ATTENDEES CLAPPING REPORTERS LEAVING MEETING ROOM FINANCE MINISTERS AND SHAFIK LEAVING SAUDI FINANCE MINISTER, IBRAHIM ALASSAF SPEAKING TO SHAFIK GCC LOGO/FLAGS (SOUNDBITE) (English ) FAHAD AL-MUBARAK, GOVERNOR OF SAUDI ARABIA CENTRAL BANK, SAYING: "(reporter asking: are you worried at all about the situation with the debt limit in the United States?) No, no, they have been there before and it has been resolved." AL-MUBARAK GETS INTO CAR
  • Embargoed: 21st October 2013 13:00
  • Keywords:
  • Location: Saudi Arabia
  • Country: Saudi Arabia
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVA38Z2R7O28E6SGSLUN6LA29UGA
  • Story Text: Finance ministers and central bank governors from the six-nation Gulf Cooperation Council (GCC) met in the Saudi capital of Riyadh on Saturday (October 5) for their 97th regular meeting.
    The leaders discussed their countries 'economic integration plans which have been dogged by regional rivalry.
    The GCC consists of Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain and has a combined annual output of about $1.4 trillion.
    Projects already underway or under study include a customs union, a joint value-added tax and even the introduction of a single currency.
    Attending the meeting in Riyadh was Nemat Shafik, Deputy Managing Director of the International Monetary Fund.
    Shafik spoke about the GCC's input in the global economy.

    "The contribution of the GCC countries to the world economy is vital, you are pillars of stability in global oil markets at a time when many other pillars are very shaky. The remittance outflows from your economy and the generous financial assistant that you provide in the rejoin, but also globally, are important and critical to many countries around the world," said Shafik.
    After the meeting had come to an end, Fahad al-Mubarak, governor of Saudi Arabia's central bank was asked by a journalist if the central bank of Saudi Arabia, one of the world's top holders of U.S. government bonds, will be affected by the political deadlock in Washington.
    The situation in Washington has pressured equities, with the S&P 500 having dropped in eight of the past 10 sessions.
    While a short-term government closure is expected to have a limited effect on the U.S. economy, the impact will be greater as the deadlock continues, with market volatility expected to spike.

    "No. They have been there before and it has been resolved," said al-Mubarak to reporters. He did not elaborate.
    Saudi Arabia, the world's biggest oil exporter, ploughs much of its earnings back into U.S. assets.
    Most of the central bank's net foreign assets of $690 billion are believed to be denominated in U.S. dollars, and much of that amount is in the form of U.S. Treasury bonds.
    Speaking privately at a meeting in Abu Dhabi earlier this week, some other monetary officials of oil-rich Gulf countries also expressed confidence that Washington would eventually resolve its political impasse without damaging global markets.
    The U.S. Congress must agree on a measure to raise the nation's $16.7 trillion debt ceiling by Oct. 17 or risk a U.S. government debt default.
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