Gains fore­cast for GCC un­der sin­gle mar­ket sys­tem

7 Days in Dubai - - BUSINESS -

A re­port into fi­nan­cial growth has claimed that if the GCC were to be­come one sin­gle mar­ket in­stead of six sep­a­rate ones to­day, it would be the ninth largest econ­omy in the world - sim­i­lar in size to Canada and Rus­sia and not far from In­dia. And if it is able to keep grow­ing at an an­nual av­er­age of 3.2 per cent for the next 15 years, it could be­come the sixth largest econ­omy in the world by 2030, hov­er­ing just below Ja­pan, ac­cord­ing to the sur­vey by fi­nan­cial firm Ernst & Young. Ger­ard Gal­lagher, MENA Ad­vi­sory Leader, EY, said: “GCC gov­ern­ments are fac­ing a de­ci­sive mo­ment. With oil price fall­ing, they have to ac­cel­er­ate the cre­ation of growth driv­ers that do not rely on oil rev­enues. They are now ex­plor­ing op­tions and tak­ing de­ci­sions such as open­ing up to for­eign in­vestors, end­ing sub­si­dies, in­tro­duc­ing tax­a­tion, op­ti­mis­ing costs and cut­ting jobs in the pub­lic sec­tor. There are signs that se­ri­ous change has be­gun. How­ever, th­ese re­forms could be less dis­rup­tive and more ef­fec­tive as part of a wider push to­wards rekin­dling and mod­ernising the drive to­wards a sin­gle GCC mar­ket.” The re­port said that un­der a sin­gle mar­ket, re­mov­ing ob­sta­cles to trade and in­vest­ment would boost the GCC GDP by 3.4 per cent or $36 bil­lion, with 96 per cent of the gain com­ing from a re­duc­tion in bu­reau­cracy. The ben­e­fits would be spread across all six economies, with the strong­est gains in the UAE, Saudi Ara­bia, Bahrain and Oman, with in­creases in GDP be­tween 3.5 per cent and 4.1 per cent in the four coun­tries, the re­port said.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.