Risks facing the oil market fundamentals and affect production
4% growth expected for the economy of the Gulf this year
The General Secretariat of the GCC Chambers Federation expected to achieve Gulf economic growth of 4 percent this year because of the expected decline in oil production, despite the economic environment supportive of growth, which requires urgent economic challenges in the GCC countries, focus on supporting the manufacturing and support projects, small and medium enterprises and diversify sources of income. According to the ' WAS ', explained the report ' the economic sector of the Gulf ' issued by the General Secretariat of the Federation of GCC Chambers that the Gulf private sector has a pivotal role in supporting the economic development and integration, the coming years will see the entry of the private sector in international companies to transfer technology and benefit from productive partnership, as well as facilitating the process of obtaining inputs for the private sector to invest in the manufacturing industry.
As expected expanded role in economic diversification programs, noting the importance of promoting national partnerships between the private sector and major companies in basic industries such as petrochemical, metallurgical industries, localization of knowledge industries, and increase spending on research and development by a certain percentage of the GDP. The report noted that the Gulf private sector needs to open more official channels by Gulf governments or the General Secretariat of the Gulf Cooperation Council to participate more broadly in drawing programs, economic development and integration and tackle the problems and challenges in promoting its full role in the implementation of programs, which will contribute to expanding the role of the private sector in the Gulf in response to the main challenges facing the Member States and above all the diversification of income sources and reduce the public budget and provide more employment opportunities for the citizens of GCC.
He noted that the world economy would grow by 2014 better if countries trade deficits of deficit reduction through increasing exports to countries that have a trade surplus, and not to impose new restrictions on foreign products, which will contribute to accelerating growth, pointing out that the levels of government spending and improve conditions for the private sector will push towards the growth of non-oil GDP of Gulf Cooperation Council 6 percent a year in constant prices in 2014. The risks facing the fundamentals of the oil market in 2014, that seem balanced, he said, predicting that gross domestic product (GDP) of the Gulf's oil by 2 per cent at constant prices this year, while the firm will remain in 2014, that oil prices at $ 100 a barrel would be sufficient to finance increased government spending without depleting financial reserves in most Gulf States.
As the report of the Secretariat of the GCC Chambers Union retreat of the Gulf's total financial surplus of 12 per cent of GDP of the Gulf in 2012 to 5 percent in 2014, because of the slight decline in oil revenues, while also easing monetary policy will continue, with interest rates on lending in most Gulf States at a level of 2 per cent or lower in 2014. The GCC States aspire to raise the contribution of the industrial sector in the gross domestic product to 25 percent by 2020, compared with 10 percent currently, the contribution rate of up to 7.7 per cent in 1990, reflecting the continued growth of the sector and the size of Government and private investment-oriented industrial projects, the expected size of the Gulf industrial investment $ 1 trillion by 2020, after the processing of the industrial cities that are being worked on For the time being.
The report drew attention to the perception in the industry as an essential means of achieving economic and social development, income diversification and investment and economic opportunities in sectors other than oil and gas, as there are many challenges still facing the sector, notably the decline in the contribution of small and medium-sized industries in overall industrial activity, despite its importance in providing jobs and economic growth, the 2014 will continue efforts for Gulf governments to deal with the challenge of increasing employment in the private sector. At Gulf Chambers Federation report that investment in major infrastructure programs in the Gulf would continue to command open trade through increased imports, and that more structural reforms to attract foreign investment in infrastructure, education and innovation will be long-term gains in promoting trade openness and competitiveness, predicting that the Gulf will lead the region in terms of integration into the world economy through trade openness and competitiveness, and that structural reforms aimed at freeing Trade and investment in the long term as economic growth in the entire region of the Middle East. On foreign investment in the GCC report indicated that GCC States maintained the size of incoming foreign investment at $ 26.5 billion, also increased the relative importance of foreign investments to the GCC from 1.7 per cent in 2012 to about 2 percent in 2013 from the total value of foreign direct investment. He reviewed the challenges facing foreign investors to establish their businesses in the Gulf region which is the lack of local skilled labor, preventive measures taken by the European and Asian countries against Gulf exports, which could discourage foreign investors establishing manufacturing facilities in the Gulf, alongside other obstacles to investment.
He called for promotion of the region as an attractive investment destination through proactively to identify growth sectors and invite the foreign companies that have extensive skills and experience to create branches within these sectors in the Arab Gulf region. Monitoring report ' the economic sector of the Gulf ' efforts of the Union of GCC Chambers of strenuous efforts in several areas, including activating the GCC common market through involvement of the private sector, represented by the General Secretariat on technical committees that are looking for Economic Affairs workshop on constraints to implementation of the resolutions of the GCC common market generated a number of recommendations. And sought to make more efforts to activate the common Customs Union for its reflections on strengthening cooperation between the private sector, in addition to seeking the Union of GCC Chambers in food security through worksheets or events organized or participated in within the GCC and beyond.
He called for promotion of the region as an attractive investment destination through proactively to identify growth sectors and invite the foreign companies that have extensive skills and experience to create branches within these sectors in the Arab Gulf region. Monitoring report ' the economic sector of the Gulf ' efforts of the Union of GCC Chambers of strenuous efforts in several areas, including activating the GCC common market through involvement of the private sector, represented by the General Secretariat on technical committees that are looking for Economic Affairs workshop on constraints to implementation of the resolutions of the GCC common market generated a number of recommendations. And sought to make more efforts to activate the common Customs Union for its reflections on strengthening cooperation between the private sector, in addition to seeking the Union of GCC Chambers in food security through worksheets or events organized or participated in within the GCC and private sector representative, who has advocated and supported the idea of their application, to achieve economic stability of GCC citizens, enhancing the investment environment in the Council that would encourage the private sector of the Gulf to consider internal investment instead of abroad, especially as there are many investment opportunities internally that will provide growth of GDP and provide new job opportunities for nationals of the GCC States.