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Fri 12 Mar 2010 09:58 AM

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‘Positive’ mid-term outlook seen in Gulf economies

Growth in GCC economies may outpace more developed countries - IMF.

‘Positive’ mid-term outlook seen in Gulf economies
(Getty Images)

Gulf economies probably will grow at a stronger pace this year than more developed countries, Middle East experts at the International Monetary Fund wrote in the March issue of the fund’s “Finance and Development” magazine.

Non-oil growth of gross domestic product was estimated at 2.8 percent last year, and the recovery in overall growth in 2010 “is expected to be stronger than in advanced economies,” according to the article on the nations in the Gulf Cooperation Council. They include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.

“While the GCC’s short-term economic outlook is clouded by the global crisis and by recent developments in Dubai, the region’s medium-term outlook remains broadly positive, supported by rising commodity prices,” said May Khamis, deputy division chief of the IMF’s Middle East and Central Asia department, and Abdelhak Senhadji, the department’s division chief.

Policy makers in the region face the “immediate priority” of cleaning up bank balance sheets and restructuring non-bank companies. In the longer term, “improving corporate governance and transparency will be paramount in view of heightened lender risk aversion, which has put pressure on GCC conglomerates and government-related entities to do a better job of disclosure.”

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Adrian Teller 10 years ago

Any smart human being knows that this market will rebound first, faster and bigger the rest in the next few years. If you invest like the Wall Street then run away beacuse there might not be quick cash. But if you invest like Warren Buffet there is a return like no other in the next five to ten years. So you don't need the IMF to tell you this, everybody know this.