"We put Bahrain's GDP forecast for 3 percent and inflation 2.5 percent for 2010 and we are expecting Bahrain tapping the potential in the international debt market," Philippe Dauba-Pantanacce, Senior Economist, MENA for Standard Chartered Bank, told reporters during a Press briefing organized by the bank to share latest trends on region's economic outlook.

"The Saudi inflation is forecast at 5.7 percent in 2010 and 4.5 percent in 2011 with GDP forecast of 3 percent in 2010. The UAE economy is also set to see 3 percent growth this year," added Philippe.

Philippe, who was joined by Jonathan Morris Chief Executive StanChart Bahrain and Feras Darwish, head of Network Clients MENA, said that Qatar would see an eight percent GDP growth and Oman four per cent in 2010.

"Bahrain's economic growth slowed down in 2009 when the country's oil production hampered due some problems and this year's economic outlook is strong as the oil and gas sectors come back to the normal capacity," he said.

Talking about the GCC region's economic outlook he said that the region whose growth hampered due to lack of opportunities last year has bounced back to normal. "The international investors are looking at the region as focus of growth and opportunities in 2010 and beyond," he said.

The GCC economies, he said, by all parameters are in comfortable growth and stabilization zone which makes this part of the world attractive for foreign investors.

In the GCC, he said, we are witnessing slow but sure recovery which is very important sign and encouraging from the investors' point of view.