'Credible steps needed' to restore financial system

Dependency on Natural Resources in GCC to Strain Green Economies and Environment

Two-Day Conference Analyses Risks and Policy Challenges in Resource Rich Economies

Dubai Gulf countries are facing numerous policy and economic challenges, impacted by the global financial crisis, that need new approaches, officials said at a conference organised by the Dubai School of Government (DSG) yesterday.

"Despite the resource-rich assets, countries in the GCC region are facing numerous policy and economic challenges," Dr Tony Venables, director of Oxford Centre for the Analysis of Resource Rich Economies (OxCarre), said. "Our prerogative during the conference was to discuss these challenges and set a roadmap for overcoming such challenges and propose sustainable policies for the future to help build an integrated economic, environmental and fiscal directive."

Credible steps

Abdul Rahman Al Saleh, director-general of the Dubai Department of Finance, said: "In this environment, the need for credible steps to restore the health of the financial system and business is crucial. In the UAE, the government has provided substantial support to the financial institutions and the market."

The first day of the conference focused on select academic papers on the relationship between natural resources and economic performance, macro-economic stability, institutional quality, and the general wellbeing of the citizens.

DSG, a research and teaching institution focusing on public policy in the Arab world, organised the two-day conference in conjunction with OxCarre on the risks and policy faced by countries rich in natural resources.

The participants included Shaikh Hamad Bin Jabor Bin Jasem Al Thani, director-general of the Secretariat for Development Planning of Qatar, Paul Stevens, senior research fellow of Chatham House-UK, Shady Shaher, economist at the Standard Chartered Bank, Ali Asghar, director of Lazard, Dr Bassem Awadallah, founder and executive president of Tamouh Consultancy, Dr David Scott, executive director of Economic Affairs of the Executive Affairs Authority of Abu Dhabi, Dr Ebrahim Abdul Gelil, director of the environmental management programme at Arabian Gulf University.

The second day of the conference focused on the policy issues for resource-rich economies in the GCC including regional integration, economic diversification strategies in resource-rich counties, fiscal policy response of oil-producing countries to the recent oil price levels, transforming oil wealth into productive assets and the impact of climate change policy on fossil fuel investment and on the GCC economies.

Dr Tarik Yousuf, dean of the Dubai School of Government, said: "It is of great importance for all countries to utilise their resources in a most efficient manner while ensuring the political, environmental and economic policies go hand in hand with development."