Muscat : The banking sector in the GCC is quite insulated and diversification has started to pay dividends, according to Charles Dallara, managing director of the Institute of International Finance (IIF).
"[The] global economy is still struggling, but there's nothing to worry about for the Gulf region," he told the media on the sidelines of the 15th annual meeting of Middle Eastern and North African (Mena) Bank Chief Executives, hosted by BankMuscat at Shangri-La's Barr Al Jissah Resort and Spa.
George Abed, IIF director for Africa and the Middle East, pointed out that even if oil prices slump, the region will not feel the impact. "The region has invested $2.1 trillion in assets around the world, therefore the economy here will remain strong," he said.
At the same time he said that oil prices would stay firm and support the added revenue to the state in the region. "Oil prices have remained high in recent weeks at around $125 (Dh459) per barrel on the back of rising geo-political risks," he said.
He reckons that oil prices could fall to $115 by June this year.
