GCC expects to grow by 3.5 % in 2010, experts

01 Mar 2010 02:48 PM

Dubai- The Gulf Cooperation Council (GCC) as an economic region is expected to grow at a pace of 3.5 per cent this year, compared with almost flat gross domestic product growth in 2009, economic experts said on Sunday.

They said Dubai will continue to lead as the region’s main economic hub.

The future of oil price is important for this part of the world, but good corporate governance and transparency Is needed to restore investors’ confidence in the regional economies.

“Growth in the region’s private sectors is likely to grow at a slower pace, with businesses focusing on stabilisation and deleveraging,” Deutsche Bank’s CEO for MENA region Dr Henry Azzam said at a forum, jointly organised by Dubai Chamber of Commerce & Industry and Gerogetown University.

Dr Azzam said that there was no growth in the region as a whole last year. “Saudi Arabia was almost flat and according to our estimates for the UAE there was a negative growth last year,” he said, adding: “In 2010 we would expect some growth coming back to the region mainly on oil and government spending.”

He said that the highest growth in this region is expected from Qatar, Saudi Arabia 4 per cent, Oman 3-5 per cent and for the UAE its below one per cent.

Eng Hamad Buamim, Director General, Dubai Chamber said that last year was more bad as was expected as oil prices dropped. Global economic recovery and more demand for oil will support higher oil prices that would help lift economies in the region, Buamim said at the seminar titled, ‘The Gulf Region after the Global Economic Crisis: The Way Forward’.

Buamim said that oil prices are expected to be better in 2010 compared with last year and will support the GCC countries. “Growth in this region is expected 4-5 per cent and this is higher than economies like Europe and America,” he said, adding: “We suffer a lot because of real estate and construction sector.”

He said that Dubai will continue to play as a hub for this part of the world specially GCC and African countries.

Hisham Al Shirawi, 2nd Vice-Chairman of Dubai Chamber, said the Emirate is poised to maintain its economic leadership status in the region as evident from a number of significant indicators.

“Despite a challenging 2009, a 2010 come-back looks imminent to us as the government continues to move forward with its infrastructure expansion plans such as the Dubai Metro, Al Maktoum International Airport and other major infrastructure projects.

We have come a long way, and we see an exciting future ahead. What we offer, as a city, goes far beyond mortar, tall buildings and roads. Dubai has undoubtedly become a multinational business and lifestyle destination and a role model for other neighbouring cities and countries to follow,” Al Shirawi said.

“The Dubai 2010 budget aims at balancing growth with economic welfare and this reflects the Emirate’s determination to move forward with its economic development plans which will surely help in boosting the investors’ confidence.

Also, the expected rise in crude oil prices will boost the government spending in UAE as last month’s discovery of a new oil field off Dubai’s coast will not only support its natural resources but the overall economic situation as well,” he said.

Source: Khaleej Times