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When the oil price crashed in the mid-1990s, reaching lows of below $20 per barrel after it had peaked during the Iraq-Kuwait conflict, it was a huge challenge for exporting nations. It exposed economies that were heavily reliant on an unpredictable, fluctuating global price for a single commodity. Since then, policy-makers in the Gulf have learned valuable lessons about how to dampen the boom-and-bust cycle and rebalance their economies.Three decades on, a report by the International Monetary Fund (IMF), struggles to find fault with the progress made. Its latest report on the six nations of the Gulf Co-operation Council (December 2025) commends policy in all areas of economic policy: monetary, fiscal and trade and business-related matters.There are several policy areas that mitigate dependence on global commodity prices:Long-term, global investments through a sovereign wealth fund,Counter-cyclical fiscal policy, making investment decisions based on potential for economic development rather than trophy assets,Encouragement of diversification through nurturing universities, research centres and entrepreneurial growth, including in hi-tech, supporting digitalisation and AI,Reducing bureaucracy and encouraging trade. The GCC has committed to these disciplines. The report’s title refers to ‘enhancing’ resilience to global shocks – many of the key reforms are in place, and in some cases have been established for many years.The region has been less affected by tariffs and trade disputes than some other parts of the world. Energy is exempt from the tariffs, and the Gulf economies do not have huge exposure to the US consumer market. The IMF notes that growth prospects for the global economy are subdued, including for the oil and gas sector. But low-to-moderate growth with moderate oil prices and low inflation is a healthy place for Gulf economies to be, given their strengths, including low debt and fiscal surpluses or low deficits, with the exception of Bahrain. Five GCC nations are in the top 30 most competitive nations, with the UAE in fifth place and Qatar in ninth.It is still the case that oil and gas exports remain the primary export earner in the region. The oil price has remained remarkably stable for the past year, typically around the $60-70 mark, despite significant price rises in commodities such as precious metals. It is likely to remain reasonably stable, as the forces that could send it sharply upwards or down are in balance. There has been something of a glut in supply, while economic growth has slowed and there is tension between the US and Venezuela, an oil producer.Diversification initiatives have been helped by governments in the region prioritising digitalisation and use of artificial intelligence (AI). The IMF reports that the GCC ‘is close to or on par with advanced economies as indicated by the Enhanced Digital Access Index (EDAI)’, scoring well on digital infrastructure and affordability.The report notes the overseas assets held by Gulf nations, although these do vary. Gross international investment assets range from 90% of GDP in Bahrain to 760% of GDP in Kuwait as of 2023.Two features that are somewhat more negative, highlighted in the report, are linked: The extent to which the public sector continues to be the dominant provider of employment, and to be the main source of investment. The IMF would like to see more private sector-led development. Growth figures for the non-hydrocarbon sector have been healthy, and more growth is projected, ranging from 2.5-4.5%, helped by the region hosting major international events especially sporting events. The share of exports that non-hydrocarbons account for varies considerably: From just 5-7% of GDP in Kuwait, Qatar and Saudi Arabia, to as high as 60% in the United Arab Emirates, reflecting the development of trading and manufacturing hubs especially in Dubai.The level of public sector employment in the region, while higher than ideal for a balanced economy, does mean that oil wealth is to some extent spread throughout the economy, and not confined to the elite. This supports domestic demand. But the IMF would like to see the wage gap between the public and private sectors reduced.For many years the Gulf nations have been welcoming to immigrants, and have a well-developed work visa system. This has helped economic development in a region with high per-capita income but a small indigenous population. The region is well positioned to attract talent from all parts of the world, especially as the US and Europe have become less welcoming to immigrants.The Fund also recommends further development in local financial markets. There is scope to expand the depth of credit and bond markets. Nations that have a higher proportion of local currency debt, and diverse investor bases, have more stable bond yields and market liquidity during periods of stress.Regional trade could be boosted, for example by reducing non-tariff barriers such as content requirements, and bottlenecks in logistics and trade financing. There is scope for increased trade both within the Gulf Co-operation Council members, and with neighbouring regions, such as Africa and south Asia.Monetary policy, by following the US and pegging currencies to the dollar, has been slightly restrictive, with interest rates above the estimated neutral level, which helps keep inflation low.Overall, while the overall economic outlook for the world is still ‘tilted to the downside’, the report says, the Gulf nations are well-positioned.The author is a Qatari banker, with many years of experience in the banking sector in senior positions. 

A year after the worst air disaster on South Korean soil, ‌families of the 179 people who died gathered around the battered ‌concrete embankment where Jeju Air Flight ‍2216 crashed, demanding answers and a thorough investigation.Hundreds of people surrounded the site at Muan International Airport ⁠where the Boeing 737-800 crash-landed without wheels ⁠deployed, slammed into the barrier and exploded into a fireball on December 29, 2024.Relatives - ‍who have said they are outraged by the lack of progress in finding out what went wrong - sobbed on Monday as they lit candles on a cake and sang 'Happy Birthday' for the 16 victims who were born in December."We will not stop until the truth is finally revealed and those responsible are held accountable so that the lives of the 179 ‌were not lost for nothing," Kim Yu-jin, representing the families, said at a memorial service in the airport.Addressing mourners, government officials and the Parliament speaker, Kim accused the government of ‍focusing its energies on clearing up ⁠the aftermath of ‌the crash rather than carrying out a proper investigation.Relatives laid flowers on a memorial altar and looked on as the names of the dead were read out and displayed on a screen, written on cards in the shape of boarding tickets."I hope the investigation will be conducted thoroughly, so that those who deserve to be punished ... are punished,” Ryu Kum-Ji, who lost both her parents in the crash, told Reuters.President Lee Jae Myung - who came to office six months after the disaster - apologised to the families in a statement earlier on Monday and said it was his duty to ​make sure there was no repeat ‌of the tragedy."The disaster clearly revealed the systematic problems and limitations of our society," Lee said."What's needed now ⁠is not perfunctory promises or ‍empty words but rather real change and action."The government-led Aviation and Railway Accident Investigation Board has failed to meet a one-year deadline to release a report into the accident.It said in a preliminary report in January that both of the plane's engines sustained bird strikes in an earlier approach to the airport.In July, investigators said the left ​engine, which sustained less damage than the right one following the bird strikes, was shut down before the crash landing.Few other details have emerged since then, with questions remaining about the design of the runway including the heavy embankment, and what actions the pilots may have taken in the last few minutes of the flight.Representatives of the families have raised questions about the board's independence and expertise and said investigators appear to be blaming the pilots rather than looking into other factors.Parliament has ⁠been reviewing a plan to overhaul the board. 

People on either side of the divide cutting through Libya grieved Wednesday for the head of the country's armed forces, who was killed when his plane crashed in Turkiye.General Mohammed al-Haddad and his four aides died on Tuesday after a visit to Ankara, with Turkish officials saying an electrical failure caused their plane to crash less than 15 minutes after takeoff."It will be hard to find a man of his calibre," Nasreddine al-Maghribi told AFP at a cafe in Libyan capital Tripoli.Haddad "enjoyed great popularity in the east and west of the country, and we had hoped that he would play a key role in the leadership of a united Libyan army", said Maghribi, who is in his sixties.Libya has been divided since a Nato-backed revolt toppled and killed longtime leader Muammar Gaddafi in 2011.Haddad had been the army's chief of general staff since August 2020.In Tripoli, seat of the internationally recognised Government of National Unity (GNU), celebrations to mark Libya's independence day were cancelled.Prime Minister Abdulhamid Dbeibah heads the GNU in the west, while commander Khalifa Haftar's administration runs the east.Both Dbeibah and Haftar have declared a three-day mourning period in the areas they control.Civil society activist Nouri Ben Othman described Haddad as "an emblematic figure for our nation"."He was not just a military leader, but also a symbol who shouldered the responsibility of unifying the institution of the military, and who worked towards a national reconciliation," he told AFP."The loss of such a figure is a loss for the nation."The UN mission to Libya, UNSMIL, also paid tribute to Haddad, describing him in a post on X as "a steadfast advocate for the unification of Libya's military and civilian institutions, peace and stability for a strong Libya"."He was a professional officer who put national interests first and a patriot who loved his country," the mission added.Until a successor is selected, Haddad's deputy, General Salaheddine al-Namroush, will stand in for him, according to the presidential council. 

Philippine authorities announced that the death toll from Typhoon Kalmaegi has risen to 46, including six crew members of a military helicopter that crashed during the powerful storm, which brought torrential rains and flooding to the central Philippines.The Philippine Army said in a statement that the helicopter crashed while on a rescue mission. The bodies of the crew members have been recovered. The crash occurred approximately 270 km from Cebu Island, the most affected area.Although Kalmaegi, locally known as Tino, has gradually weakened since making landfall on Tuesday, it continued to batter the country with winds reaching speeds of up to 120 km per hour as it passed through the Visayas islands, heading towards northern Palawan and the South China Sea.Local authorities indicated that tens of thousands of residents in the Visayas region have been evacuated, and rescue operations are ongoing. The typhoon is expected to leave the Philippines late today or early tomorrow Thursday.The Philippines is hit by or approaches approximately 20 typhoons and storms annually, often causing the most damage in the country's poorest areas.

At least three people were killed, and 11 others were injured when a UPS cargo plane crashed near Louisville International Airport in Kentucky. The US Federal Aviation Administration explained that the aircraft, an MD-11 model, crashed after taking off from Louisville en route to Honolulu, noting that the aircraft was carrying three crew members.Emergency services in Louisville reported that they issued an order to stay indoors within a five-mile radius of the airport, due to fires breaking out in industrial buildings adjacent to the crash site and the closure of several roads, while local reports indicated the formation of a large fire and the rising of thick columns of smoke.The airspace at Louisville airport was temporarily closed following the incident, amid expectations of impacts on cargo operations, given that the airport houses UPS's Worldport Center, the company's largest parcel processing facility.

The US Pacific Fleet announced that a helicopter and a fighter jet crashed during separate routine operations over the South China Sea, adding that all crew members were rescued safely. According to CNN, the US Navy has launched an investigation into the cause of both incidents, which occurred over what it described as strategic waters.The Navy said that an MH-60R Seahawk helicopter went down while conducting routine operations from the aircraft carrier USS Nimitz. Search and rescue teams saved the three crew members.It added that about 30 minutes later, an F/A-18F Super Hornet fighter crashed while carrying out routine operations from the Nimitz base.The Navy noted that the two crew members ejected and were safely recovered.The US Navy had previously lost two other F/A-18 aircraft in the Red Sea last spring after one fell into the sea from an aircraft carrier, while the other apparently suffered a landing gear malfunction.

Three people were injured when a medical helicopter crashed on a California highway last night. Local authorities reported that three people were in critical condition after the helicopter crash and were taken to hospital. One victim was rescued after being trapped beneath the helicopter. A California Highway Patrol spokesperson said the accident affected traffic, temporarily closing some lanes, warning that the road would be closed for an extended period of time. Last May, one person was killed, and two homes were damaged when a small plane crashed in the Simi Valley neighborhood of southern California.