“Bahrain’s enhanced production at Abu Safa Oil fields backed by other economic drivers will help to achieve 4.5% growth in 2013 and 5% in 2014, showing a sustained growth patterns,” Global Head of Macro Research at Standard Chartered Bank Marios Maratheftis told media briefing on Monday.
Marios, who was joined by Noora Al Nusuf, Head of Corporate Communications of Standard Chartered Bahrain, touched upon global, regional and local economic themes and said that the global economy was going through transformation. Industrialisation in Asia he cited as one of the main reasons of transformation of the global economy.
Bahrain, he said, has many advantages including access to the international market in case the Kingdom needs to seek debt from the international markets.
“The low interest rates in the international market, as it is not likely that the world’s largest economy the United States to going to increase the interest rates soon which will keep the debt a very affordable option for Bahrain or any other GCC country for matter. If any of the GCC countries will approach at this point of time, they can raise debt as much as they need at historically low rates,” Marios explained.
Talking about over Middle East outlook, he said that it would remain positive in 2013 and many countries will reap benefits of huge investments in local economies and the prime example is of Saudi Arabia.
“The Kingdom of Saudi Arabia is investing massively in creating the non-oil economy to create millions of jobs for its unemployed youth which continue to be major challenge for the Kingdom in coming years. We have also seen massive economic activity in Abu Dhabi while UAE will continue to benefit from huge tourism and revival of its weak housing sector,” he said.
Qatar, he said, will also see huge economic activity by 2015 or beyond as the country will prepare to host World Cup in 2022 for that the countries needs huge infrastructure and mobility of resources in all allied sectors.
Talking about Kuwait, he said, it will continue to be an important GCC economy but the story will remain same this year. “The expediency of spending of national budget as per projections of budget will continue to haunt the Kuwait Government as in many previous occasions Kuwait has had failed to even spend a set aside budget. Otherwise the economy is doing fine. The State of Kuwait also reiterated many times to diversify its economy but failed due to political will,” he added.