MANAMA: With a combined GDP of $750 billion and with over $2 trillion projects in the pipeline, the Gulf region has emerged as a very important economic player, a top official the Gulf Cooperation Concil (GCC) has said.

“The GCC which also hosts 40 percent of the global oil reserves and 20 percent of the world gas reserves will continue to play an important role in the global economy,” Chairman of the Federation of the GCC Chambers Esam Abdulla Fakhro told the Australian Business Group in Bahrain.

“The GCC with huge oil and gas reserves worldwide will continue to be one of the most attractive foreign investment destinations,” he said, adding that the ongoing efforts to diversify GCC economies ahead of the projected depletion of hydro-carbon reserves in the next 70 to 80 years will allow the GCC to remain a preferred investment destination for Australia and other countries.

“With a total population of 36 million, the GCC is the 6th largest economic bloc in the world,” said Fakhro. Talking about Bahrain’s economic climate, he said the country’s financial services sector, aluminium, education and tourism would help attract Australian investments. “With the total balance sheet size of $236 billion and GDP of $21.8 billion, Bahrain is seen as a destination of choice by the foreign investors in the financial services,” added Fakhro, who is also chairman of the Bahrain Chamber of Commerce and Industry (BCCI).

“There are over 400 financial and banking institutions based in the Kingdom. They are enjoying the best regulatory environment which offers a level playing field for all businesses,” he said.

“We have seen a sustainable growth in the banking and finance sector despite the impact of the global economic meltdown. The Islamic banking sector is another important segment of the national economy which has been growing around 20 percent over the last three years,” added Fakhro.

He also said that the ongoing globalization and efforts to make the economy competitive with an attractive investment climate means that the private sector will serve as an engine growth for the national economy. “The BCCI will continue to work in partnership with the private sector in realization of the national goals aimed at making Bahrain one of the most competitive economies in the region,” he said.

Bahrain’s labour market, economic and education reforms and King Hamad bin Isa Al-Khalifa’s Vision 2030 is a step forward to diversify Bahrain’s economy by reducing the dependence on hydro carbon revenues which currently accounts for 29 percent of the GDP growth, he said. “The reforms will fuel the ongoing diversification drive moving the national economy away from oil,” he maintained.