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Impact of crisis on GCC countries manageable, Islamic bank says
The effects of the global financial turmoil on GCC countries are manageable compared to other parts of the world due to the fundamental strength of the Gulf states, according to a Bahrain-based Islamic investment bank.
- Staff Report
- Published: 23:21 November 14, 2008
Dubai: The effects of the global financial turmoil on GCC countries are manageable compared to other parts of the world due to the fundamental strength of the Gulf states, according to a Bahrain-based Islamic investment bank.
"The tremors of the financial quake in the US have also had an impact on the GCC in terms of reduced oil prices, financial liquidity and the drop in share values of companies listed on the GCC stock markets. These effects are manageable when compared to the retrenchment and recession experienced elsewhere in the world and when seen in the context of the fundamental strength of the GCC economies," said Mark Hanson, chief executive of Global Banking Corporation B.S.C (c) (GBCORP), in a recent statement.
"Surplus revenues generated over the past few years through robust oil prices and investment income generated so far this year and last have produced massive current account surpluses and these are still available to fund major state infrastructure projects", he said.
The GBCORP statement said the bank will be taking part at the GCC Euro Expo in London soon. It will focus on issues related to the current economic crisis and provide insights on the way forward for Islamic banking.
The GCC Euro Expo will build investment bridges between the GCC region and Europe and also provide opportunities for the resilient long term investor.
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