The Secretary-General of the Gulf Cooperation Council warns of the repercussions of the crisis on supply and food chains

Jassim Al-Budaiwi, Secretary-General of the Gulf Cooperation Council, confirmed that the repercussions of the current crisis in the region extend to the economies of the Middle East, Europe, and the world, noting that the disturbances in shipping routes and the rise in transportation costs are now directly reflected in the prices of goods, food, and supply chains.

This came during his speech at the second ministerial meeting of the “Rome Alliance” on “Availability of Fertilizers and Food Security: Dealing with Food Security Challenges in Light of Global Crises (Strait of Hormuz - Red Sea - Black Sea),” on the sidelines of the meetings of the 81st session of the United Nations General Assembly in New York, Thursday.

Al-Budaiwi stated that the Gulf countries and the European Union together possess the economic, logistical and investment capabilities and capabilities that enable them to confront the economic repercussions of the current crises, and enhance energy and food security and the sustainability of supply chains.

He stressed the commitment of the Gulf states to the reliability of supplies and the continuation of exports within the limits permitted by security conditions, stressing that energy, food and fertilizers will not be used by the GCC states as tools to pressure any party.

The Secretary-General pointed to the efforts made by the Gulf countries to diversify transport routes and enhance regional and international connectivity, through developing pipelines, ports, railway and road networks, and storage facilities, which contributes to raising the efficiency of supply chains and enhancing their ability to confront crises.

He stressed the importance of joint work to reduce transportation and insurance risks, and give priority to shipments related to food, fertilizers, and fuel, as well as strengthening the trade and regulatory agenda between the Council and the European Union, and pushing forward negotiations towards a free trade agreement, developing electrical connectivity, and cooperation in the field of hydrogen and investment.

Al-Budaiwi expressed the Gulf Cooperation Council’s aspiration that the second Gulf-European Summit would contribute to pushing these priorities forward and enhancing the organized dialogue between the two sides regarding economic and regulatory measures affecting the movement of trade and supply chains, stressing that joint action between the two regions represents the most effective path to dealing with the current economic challenges.