MANAMA, 6 December 2007 — Foreign investments in the oil and gas sector in the Gulf Cooperation Council (GCC) countries are estimated at $260 billion as global demand for energy resources grows.

These investments are projected to reach $450 billion from 2007 till 2010 in the sector alone, UAE Economy Minister Shaikha Lubna Al-Qassimi said yesterday.

Lubna, who was a keynote speaker on day two of US-GCC Investment Forum, said that the investment prospects have never been so bright like that of today for the entire GCC region. However, she said, the focus of the GCC as a block would continue on creating a sustainable and well diversified economies.

“There is an immense potential for the investors from the US or other players keen to take the advantage of the existing opportunities,” she said, as a result of a tax-free environment, free trade norms, investors’ friendly environment and availability of quality human resources. The region also offers very attractive and flexible duty packages for various businesses in this region as a destination of choice for investors.

In the backdrop of recent developments and progress, the GCC as a region has emerged as one of the most dynamic economies in the world. The infrastructure development, ongoing construction boom and investments in large and mega projects are just few but important drivers to attract the direct foreign investments.

“The US-UAE, US-Saudi Arabia and US-Bahrain Business Councils broaden the scope for enhancing investment base between the GCC and the US. The business forums are of immense importance for the private sector entities as well as for the governments to pinpoint the most potential areas of possible cooperation.”

“The US-GCC Investment Forum is a right place for the public-private sector executives to learn more about the existing potential of cooperation. The globalization has created an environment for different players working together with diverse interests. In my capacity as the minister of economy, I support this type of events aimed at helping the private sector in its endeavors to achieve new heights of excellence.”

Our government and the rest of the region share the grounds that how to promote the flow of trade and investments. We firmly believe that healthy relation between the public and private sectors is a key in achieving such important goals.”

Lubna said that the key strategic business is the basis for creating substantial economies in the region. “The GCC government despite surging oil prices are keen to diversify their economies by minimizing the dependence on oil, as in the long-term, such move would help in creating a sustainability and development.” She said that there were many sectors, apart from the oil and gas, which have enormous potential of growth such as tourism and leisure industry.

“In UAE alone we receive around 8 million visitors every year and 85 percent of the total investments in this sector also account for the UAE. We have other areas such as free zones, airport expansion and facilities at the airport that receives over 30 million passengers a year. The other sectors include the ICT, telecommunication and manufacturing. The manufacturing sector size is over $150 billion in addition to the energy and aluminum sectors that also have a huge potential, she added.

Lubna further said that the excess liquidity and demand on facilities has ushered in a new era of construction sector with every third crane in the world located somewhere in the Gulf and most of them are deployed in Dubai alone.