Expert advises Gulf countries to diversify for sustained growth

MANAMA: “The overall outlook of the Middle East would continue to be robust but experts view diversification as a key driver to maintain long-term economic sustainability in the Cooperation Council (GCC),” Richard Fox, head of MEA Sovereign Ratings at Fitch Ratings UK, said here yesterday. Fox is currently in Manama to address the GCC Outlook Conference.

He also warned that the ongoing inflation of 15 percent in the UAE and six percent in Bahrain would go higher.

The expert said that the GCC would not see a common currency by 2010. However, he said, setting up a monetary council is a clear sign of conviction by GCC member states to have a common currency. Fox, who presented a paper on the GCC Sovereign Outlook, said that the GCC banking sector would continue to be strong but the heavy lending by the GCC banks would be under scrutiny for rating agencies like Fitch Ratings.