'GCC states will stimulate next cycle of global growth'

The Gulf countries have a vital role to play in stimulating the next cycle of global economic growth, said a senior Bahraini official.

Speaking at the World Economic Forum's Annual Meeting of the New Champions 2009 in China, Bahrain Economic Development Board (EDB) Chief Executive Sheikh Mohammed bin Essa Al Khalifa, 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 $1 trillion (Dh3.67trn) 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."

He said the GCC has a point of view that needs to be heard on significant issues, reiterating comments he made at the World Economic Forum 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.

Speaking on the global economic outlook, he said: "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 such as 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 $1trn potential. And we will continue to diversify, essential if we are to enjoy the security and growth afforded by a balanced economy."

He said that while 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.

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 measures designed to strengthen the long term sustainability and prosperity of the country.

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