The Gulf states are well positioned for growth, and compare favourably with Asian markets of the 1990s, says a report due to be published tomorrow.
The six GCC countries stand up well compared with the economic transition of the four key Asian markets 20 years ago, according to the research company Arabia Monitor, a member of the World Economic Forum’s regional agenda council on the Middle East & North Africa (Mena).
The report, Beyond the Arab Uprisings, measured the Gulf economies against Hong Kong, Singapore, Taiwan and South Korea.
“We find opportunities and challenges – but an encouraging picture overall,” the report noted.
“To look beyond short term ‘noise’ we [carried] out a comparison between the GCC and the newly industrialised Asian countries, applying a 20-year lag where relevant,” it added.
Last year, the Gulf nations were found to have lower inflation, and a higher current account balance and gross national savings — both relative to GDP — than their Asian counterparts in 1991.
The GCC’s “positive future growth prospects” gives it a “comparative advantage”, the report noted.
Florence Eid, the chief executive of Arabia Monitor, said the GCC region was “just as well positioned” as those emerging markets during their “economic liberalisation period”.
Other regions with which the GCC region compares well include eastern Europe after the fall of the Berlin Wall, and Latin America in the 1990s.
To read more on Ben Flanagan’s article in The National please visit http://www.thenational.ae/thenationalconversation/industry-insights/economics/gulf-states-are-well-placed-for-growth