Stephen Timewell reports on how a major new financial centre, a strong regulatory environment and a plethora of projects are set to cement Bahrain’s reputation among its Gulf neighbours.Brimming with confidence after its successful Formula 1 grand prix in early April, Bahrain is ambitious to project its long-established role as the Gulf’s premier financial and banking hub and capitalise on the booming economies in the region.
Abdulla bin Khalid Al-Attiya, governor of the Qatar Central Bank, talks about Qatar’s financial future. Q The Qatar economy is seen to be booming; how do you see its prospects and the years ahead? A The economy has been growing strongly, reaching 8.8% growth in 2003 and a GDP total of Qr70.8bn ($19.5bn). Other factors have been positive, too, with the balance of payments surplus rising 34.2% to Qr10.9bn in 2003 and inflation, although rising, kept at 2.3% last year. Clearly the economy is influenced by developments in the oil and gas sectors, and the growth in gas revenues has and will be significant, with gas revenues expected to be higher than oil revenues by 2010.
Huge hydrocarbon reserves and modern infrastructure are creating a gold-rush mentality among bankers, with local banks’ profits rising and foreign institutions trying to get a look in. By Stephen Timewell in Doha.Qatar’s booming economy is proving to be a bonanza for banks. Well-established local institutions have boosted profits and new regional players are buying in to get a slice of the huge opportunities available. Despite events in Iraq, investors and bankers are seeing the massive potential offered by Qatar’s unique hydrocarbon reserves and the modern infrastructure put in place in recent years.
Nick Kochan finds Dubai and Bahrain are competing hard for the region’s growing business opportunities.The announcement in April of a new federal law governing Dubai’s embryonic financial centre heralds a battle royal between the Gulf states of Dubai and Bahrain. Dubai is the upstart in the imminent struggle, while Bahrain is more established but there can be no doubting Dubai’s enthusiasm, ambition and ‘can-do’ approach.