Econ Crisis In Gulf Over, No Systemic Risks - DIFC
The economic crisis in the oil-rich Gulf states is over and the region has not experienced any systemic risks, a top United Arab Emirates official said Tuesday.
"We're in a position to declare with a great deal of confidence that the region has successfully passed through the worst of the crisis without experiencing any systemic risks," said Omar Bin Sulaiman, the governor of the Dubai International Financial Center who is also the vice chairman of the U.A.E. Central BankU.A.E. Central BankCentral Bank of the United Arab Emirates
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Bin Sulaiman, speaking at a conference in Dubai, added that Gulf countries hold massive hydrocarbon reserves. He called the reserves "transformative" because they have the ability to ensure long-term financial stability.
Referring to a study done by the DIFC Authority's economic unit, Bin Sulaiman said that the present value of oil reserves belonging to the six Gulf Cooperation Council countries stands at $18.3 trillion, larger than the gross domestic product of the U.S. in 2008. "If the price of oil averages at $100 a barrel and the price of gas at $9, this will bring revenues of $37.7 trillion, equal to the world's total stock market capitalization."
Expanding on a speech given last week by the country's Central BankCentral Bank Governor, Bin Sulaiman called for the formation of a regional debt market.
The "Middle East banks, with their close proximity to Asian markets, are ideally positioned to link up with partners in China, India, Central Asia and other areas to provide the financing that will fuel the strong growth anticipated in emerging markets for years to come," Bin Sulaiman said.
