IMF: Middle East oil nations to emerge from downturn faster (page 2 of 2)

We have to prepare the banking system now to adopt them,' he said.

Examples, he said, included the failure of fragmented regulation, pointing to the response in the EU to bank problems, which he said, were not as strong as they could have been. One lesson as the GCC heads towards monetary union is to have a single financial authority.

Equally, the IMF has warned that there is no room for complacency in the GCC, as it still faces substantial risks. In particular, if the global recession lasts longer and its impact is deeper than is being predicted, then oil prices will continue to come under pricing pressure, damaging the economies of oil producing nations.

Additionally, even if economies stabilise next year as the IMF expects, unemployment is expected to continue to rise, as this normally lags any pick up.

But Saidi said that while now is the time for the GCC to develop its markets and not be complacent, it must become a bigger force on global markets.

'The message from this is that emerging markets can boost their voice and economic weight as a result of the crisis. The GCC is going to recover more quickly than advanced countries. If there are any green shoots [of recovery] you need to look at them in Asia and in particular in China than in Europe and the US, where recovery will take much longer.'