Gulf urged to harmonise financial standards

Dubai: Cross-border investment in the Gulf will soar if members of the Gulf Cooperation Council (GCC) harmonise accounting, auditing and financial reporting standards, a top econ-omist said yesterday.

Chief economist of Dubai International Financial Centre, Nasser Saidi, said International Financial Reporting Standards (IFRS) must be made mandatory for publicly listed firms.

"The GCC is moving towards market integration and countries must harmonise accounting standards. It will boost investor confidence and encourage cross-border investment," he told Gulf News.

He said there were wide discrepancies in accounting practices adopted by companies in the GCC.

While IFRS are directed at large companies, Saidi, a former first vice-governor of Lebanon's central bank, said small and medium businesses would also benefit from global standards.

He said adopting common accounting practices was needed to do business in a globalised world.

Referring to the recent stock market upheaval, Saidi said markets would become volatile and investors would lose confidence if accurate information was not made available to them.

He said only tidbits of information was available to investors during turbulence.

With huge liquidity and capital available, the GCC is in the midst of an era of renaissance, Saidi said.