GCC key in relaunching global growth, says Bahrain EDB Chief Executive

Shaikh Mohammed said:

"It is appropriate that we are in China, one of the new global giants along with India, to focus on 'Relaunching Growth'. And just as these two nations have affirmed their important place in the global economy, the Gulf is emerging as a third destination vital for a transformational and sustainable recovery. The GCC is a single market which still enjoys enviable rates of growth and is approaching one trillion US dollars in terms of GDP - the equivalent of India. People are now talking about China, India and the GCC; global engagements should take that into account."

Shaikh Mohammed noted that the GCC has a point of view that needs to be heard on significant issues, reiterating comments he made at WEF on the Middle East in May. In Jordan, he said it was time for the Middle East - and the Gulf - to take its rightful place in the new economic architecture. His latest comments came during a session at the WEF Annual Meeting of the New Champions 2009 or 'Summer Davos' in Dalian, the People's Republic of China. Speaking on the global economic outlook, Shaikh Mohammed responded to questions from Martin Wolf, Associate Editor and Chief Economics Commentator at the Financial Times.

Shaikh Mohammed stated, "Reviving economic growth is a priority for us all. And we must work together to restore confidence and revitalise the global economy in a sustainable manner. There is much to learn from the Gulf economies and we are rightly recognised as a model for cross-border partnership. We will continue to fund new investments, especially at this difficult time for the world economy. And in due course there will be opportunities for privatisation."

"You can expect the GCC states to continue to invest in essential areas like healthcare, infrastructure, education and training - to build an attractive business environment for international companies seeking access the growing markets of the Gulf. We will act as a single market, where companies can operate easily across borders to access its trillion dollar potential. And we will continue to diversify, essential if we are to enjoy the security and growth afforded by a balanced economy," he assured.

Shaikh Mohammed said that whilst the GCC economies will increasingly reduce their dependence on oil, their strength at the heart of the world's oil and gas riches should be treated as an opportunity to enable such growth and diversification. The Gulf has 40% of the world's proven oil reserves but only a 22% share of global oil production, giving considerable scope to increase market share through greater production.

He added that Bahrain itself would continue to champion a legal and regulatory environment that is supportive, firm and fair, with the external support provided to make doing business easier. The Kingdom has taken a number of domestic measures designed to strengthen the long term sustainability and prosperity of the Kingdom, including a prudent fiscal and monetary approach, long term strategy of economic diversification and tried and tested regulatory framework with a commitment to the highest international standards. This approach is enshrined in Bahrain's Vision 2030 and National Economic Strategy, both committed to maintaining the optimum business environment that will attract foreign investment and ultimately elevate national living standards by creating greater opportunities for Bahrainis.

Many of the world's foremost policy-makers and business leaders gathered at Summer Davos from 10-12 September to address some of the biggest challenges on the global agenda. According to WEF, this new generation of leaders - the New Champions - will be responsible for transformational and sustainable recovery through entrepreneurship, innovation and technology.