Promising future on gulf investment

The states of the Gulf are opening to domestic investors as well as foreign capital. A signal of this is the Africa & Middle East Fund launched last September by T Rowe Price.

Investors in the United States could take a look at the economies of Middle East Countries grouped in the Gulf Cooperation Council, as it just negotiated its first free-trade agreement with Singapore, a country outside the Middle East and announced plans for a GCC common market last December.

The GCC is conformed by Saudi Arabia, the United Arab Emirates (consisting of seven city-states including Dubai and Abu Dhabi), Oman, Qatar, Kuwait and Bahrain.

Analysts believe the main event happening in the Middle East is selling of oil and natural gas as developed countries may import these more and more. Experts have estimated the Middle East may be the most compelling seller's market in the history of capitalism where money flows to suppliers of oil.

But the GCC is also pouring money to diversify its economies, for example by creating new jobs for young people and preparing when their oil reserves decrease or their big consumers create alternative ways of energy.

Middle East countries are amplifying industries such as petrochemicals, supporting centers for high technology, promoting tourism, making financial and tax-free trading hubs as well as easing restrictions on business and foreign ownership.

Developments Facts