Asharq Al-Awsat has learned of a joint initiative by the Federation of GCC Chambers and the International Labor Organization to conduct a rapid assessment of the impact of the war on the private sector and labor markets across Gulf Cooperation Council countries.
The initiative is expected to contribute directly to the formulation of actionable recommendations aimed at preserving labor market stability and supporting business continuity.
The initiative seeks to assess the impact of the current crisis and conflict on private sector institutions, with particular focus on small and medium-sized enterprises, as well as on labor markets across GCC states.
According to the information obtained, the Federation of GCC Chambers has asked private sector companies and institutions across member states to document the impact of the war, whether they market their products domestically or in regional and international markets.
The federation is also seeking to determine the effects of the current regional crisis on supply chains and private sector operations, including delays in receiving imported inputs, shortages of critical materials affecting operations, higher transportation and logistics costs, and disruptions in the distribution of goods and services to markets and customers.
It is also examining the direct impact of disruptions to maritime trade routes, including the Strait of Hormuz, on businesses, particularly in terms of rerouting shipments through alternative routes or transport methods, difficulties shipping or receiving goods by sea, increased shipping and insurance costs, declining import and export volumes, and shipment or order delays and cancellations.
The federation has further requested information on the extent to which the crisis has affected overall operating expenses, whether significantly, moderately or not at all, as well as its impact on companies’ investment plans, including whether firms intend to cancel, reduce or indefinitely postpone investments, or instead increase spending to adapt, restructure or respond to new conditions.
Among the challenges the federation is seeking to assess are companies’ ability to cover operating and fixed costs, revenue conditions, and the immediate measures taken regarding their workforce in response to the crisis, including reducing working hours, shifting employees to part-time arrangements, freezing recruitment and hiring, cutting wages and benefits, or reallocating staff to different roles and functions.
Secretary-General of the Gulf Cooperation Council Jasem Albudaiwi recently said that a series of Gulf economic and financial achievements had strengthened regional integration and reinforced financial stability in the face of evolving challenges.
Speaking during the 125th meeting of the GCC Financial and Economic Cooperation Committee in mid-May, Albudaiwi said the current war crisis requires Gulf states to move beyond traditional coordination toward a higher level of practical integration and effective response.
He said the accelerating crises and growing economic challenges facing the region underscore the urgent need for a conscious response and measures capable of mitigating their impact on GCC economies, which have long been characterized by openness and deep engagement with the global economy.
Albudaiwi also stressed the need to expedite the completion of key joint Gulf projects, including transportation and logistics initiatives, while accelerating implementation of the GCC railway project and strengthening the regional electricity interconnection network.
He further called for studying the establishment of oil and gas pipeline networks, a GCC water interconnection project, strategic Gulf stockpile zones, and measures to ensure adequate liquidity reserves at central banks.
