Gulf countries becoming new power brokers

Dubai: The economies in the Gulf are not immune to the global financial crisis, but they are emerging as the new "power brokers" of world finance due to their massive and growing fortunes, a top official of McKinsey and Company said on Sunday.

Local leaders, however, need to be more flexible and adaptive, and the region has to broaden its economic base to maintain its global competitive edge, according to Rajat Gupta, senior partner emeritus of management consulting firm McKinsey and Company.

"Dubai's soaring office and hotel towers symbolise the region's rising fortunes and ambitions. The wealth of the Gulf region is founded on its oil reserves and it could be further propelled by the diversification of its economy for long-term success.

"The growing power of Gulf states has become a central factor in the geo-political and economic landscape," Gupta said during the Leaders in Dubai Business Forum which kicked off on Sunday.

"A McKinsey report recently found that oil-exporting states in the Gulf have emerged as some of the new power brokers of world finance. They are growing as a significant source for liquidity. The analysis reflects the shift of influence and the realignment of financial flows around the world," Gupta added.