GCC private sector put at $320bn

The private sector in Gulf oil producers has grown by an annual average 15 per cent over the past few years to boost its contribution to the domestic economy to nearly $320 billion in 2010, official data showed on Sunday.

The figures were released ahead of Monday’s meeting of private sector representatives of the six-nation Gulf Cooperation Council (GCC) in Abu Dhabi to discuss higher contribution to the local economy and obstacles blocking the full implementation of the common Gulf market.

From around $205 billion in 2005, the private sector’s contribution to the GCC’s overall GDP surged to nearly $236 billion in 2006, an increase of about 14.9 per cent, showed the figures by the Dammam-based Federation of GCC Chambers of Commerce and Industry (FGCC).It swelled by around 1t5 per cent to $272 billion in 2007 before peaking at nearly $320 billion in 2010, showed the report, sent to Emirates 24/7.“In 2010, the private sector contributed by around 33-35 per cent to the GCC’s GDP…its contribution was concentrated in non-hydrocarbon industries, trade, tourism, transport, communications and financial services,” it said.

The statement said Monday’s talks to be hosted by the Federation of the UAE Chambers of Commerce and Industry would focus on ways to further expand the private sector’s role in the GCC economy following a proposal by Saudi Arabia to turn the 31-year-old Gulf alliance into a single market.

“The talks will also cover obstacles facing the full implementation of the GCC common market and customs union,” the statement said.“These obstacles include existing curbs on land and stocks ownership in member states, a ban on the establishment of companies without local partners and restrictions on banks to open branches in other GCC members.

”In recent remarks, FGCCI secretary general Abdul Rahim Naqi said GCC countries, which control over 40 per cent of the world’s recoverable oil deposits, need to embark on reforms to stimulate the economy and the private sector.He said the current political turbulence in the Middle East and North Africa would affect many sectors in the region, on top of which is the domestic economy.He noted that while unrest has not spilled over into most GCC members, they should take measures to revive their economies, get closer together and honour their promise to carry out social, political and economic reforms.

“The present turbulence and bottlenecks must not weaken our belief in the need for reform…we must stick to reform demands and to the need to enforce rules of transparency and accountability to curb corruption and monopoly,” he said.“GCC countries should get closer together and implement all merger agreements…we need to preserve our achievements by confronting all problems and obstacles through realistic solutions and a strong will within a clear, stern and definite timetable for reforms…we should not allow the others to set our choices or impose their own choices on us…the present stage requires a great deal of wisdom and vigilance and more understanding and tolerance….let us make the current developments an historic chance to enter the future with confidence and with more capability and resources.”

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