MANAMA: The GCC economies have emerged more resilient amid falling oil prices in the recent months, according to Chief Economist at the EDB.
“The GCC economies have started focusing on the structural reforms and diversification of their economies to minimize the impact of rapidly falling oil prices and persistent economic uncertainty globally,” Dr. Jarmo Kotilaine, Chief Economist for the Bahrain EDB told the Press conference on Monday.
He was speaking as Bahrain announced to host the 4th Euromoney GCC Financial Forum 2015 and said structural reforms and creating an attractive climate for foreign investments would remain a daunting challenge for the regional economies.
The press conference was held at the Bahrain Economic Development Board (EDB) offices Euromoney Conferences, the world’s leading organiser of conferences, briefed the members of the local media on the themes and topics to be discussed at the 4th GCC Financial Forum 2015.
The press conference was led by Richard Banks, Emerging Markets, Euromoney Conferences, and EDC Chief Economist Dr Jarmo.
The two-day Forum opens on Tuesday Zallaq Thalassa Sea and Spa, Kingdom of Bahrain.
“GCC governments remain dependent on oil revenues while some have started working on economic diversification programs. This year and beyond will be more complex and challenging than the recent past for this part of the world and the global economies,” Richard Banks, said.
“There are a number of factors that seem to drive the market and some of these include: a sustained and significant surge in non-OPEC output; continued supply despite potential geopolitical risks in oil producing regions; a period of softer than expected global demand; a strong dollar and a strategy by the Kingdom of Saudi Arabia to protect market share rather than headline prices. We will be taking a closer look on how these factors will impact the GCC financial markets,” he concluded.
“Oil price cycles come and go, but the GCC has some of the strongest fundamentals of any region in the world. The young nature of the demographic profile is very favourable and economic diversification continues to open new opportunities across the spectrum of sectors. Better connectivity and integration, both regionally and with the global economy, is accelerating growth in the region. Large investments are being made in transportation links both within the GCC and between the GCC and the world as the region becomes highly integrated within global trade and travel flows,” Dr Jarmo said.
“So we are confident that the dynamics of the non-oil economy will remain favorable in spite of the recent volatility in the oil price. With that in mind, I hope the attendees at this year’s GCC Financial Forum leave with a sense of not just the challenges the region is facing but also cognizant of the exceptional opportunity to capitalize on wide-ranging and sustainable investment themes.”
At the 4th GCC Financial Forum a range of topics will be discussed. Some of these include; Regional finance in the global market place; the role of private capital in public projects; Bahrain’s real economy; the growth of local companies and the pipeline of hydrocarbon projects.
More than 600 leading international and regional financial experts from finance, investment, government, and regulatory organisations and businesses from 18 countries are expected to attend the event.
Euromoney is the world’s leading organiser of conferences for cross-border investment and capital markets for portfolio and direct investors, financial intermediaries, corporations’ governments,’ banks and financial institutions. Since the late 1970s Euromoney Conferences has run events in more than 60 countries.