GCC states to spend $700m on infrastructure

Riyadh: The Gulf Cooperation Council (GCC) states will spend $700 billion in modernising infrastructure and social services up to 2010, the Federation of the GCC Chambers (FGCCC) said in its latest report.

The report noted that the rise in oil revenues has increased both public spending and the volume of imports. "Imports of the GCC states have jumped from $330.5 billion to $409.4 billion," it said.

The GCC stock markets continued their good performance during the past few months compensating part of the losses they incurred in 2006, it said.

FGCCC chairman Dr Issam Fakhrou, who assumed his post on Sunday, said inflation is the key problem in the region. The projects under progress in the states is worth some $2 trillion. Eng. Salah Al Shamsi, the former chairman of FGCCC and chairman of the Federation of UAE Chambers of Commerce, described the inter-GCC trade and investment as 'very low'.

GCC trade

He noted that the trade between the GCC states is not exceeding nine per cent while investment is only seven per cent.

He called for enhancing the international export opportunities that the GCC states have in petrochemicals and aluminum.

The 33rd meeting of the FGCCC witnessed a heated debate over increasing the contributions of member states to the budget of the GCC Commercial Arbitration Centre.

Fakhrou said that his chamber could not afford any increase in its contribution.