Survey Reveals BankDhofar Among Best GCC Performing Banks

BankDhofar CEO Tony Mahoney

The annual Gulf Business Survey is a respected analysis and overview of the financial industry in the Gulf region. The survey this year points to a general trend towards moderate economic recovery throughout the GCC as well as showing Gulf banks in an excellent position, in many cases better than their international counterparts in the aftermath of the global financial crisis.

In particular, BankDhofar was shown to be one of the two best performing banks in the region. CEO of BankDhofar Tony Mahoney spoke about his bank’s ranking,

"We are currently implementing our strategic plan for 2012 to 2016 and we are extremely optimistic that it will bring us to where we want to be. Being rated amongst the top ten performing banks in the region by the Gulf Business survey is a solid step in the right direction to us achieving our vision to the best bank in the Gulf. The results of this survey reflect our ability to generate sound revenue growth and an increase in our profits to enable us to grow our business."

GCC States Growing Despite Oil Price Drops

GIC

The Gulf Investment Corporation published a report saying that the six Gulf Cooperation Council States will collectively post a 5.8 percent expansion by the end of the year, reaching a GDP of $1.6 trillion in current prices.

The GIC is a Kuwaiti-based firm owned jointly by the governments of the GCC.

The report stated that it is not expected that the recent falling oil prices will have any effect on the predicted growth because the GCC countries are moving towards a consumer society in which public spending is fueling the economy while at the same time governments are instituting reforms to strengthen and stabilize their economies.

"Despite speculation about a further oil price decline, the GCC economies are still expanding as they are based on real growth pillars," the report stated.

"The first and most important pillar is the high public spending in most member states as it accounts for nearly 35 percent of GDP… this is coupled with the implementation of massive projects worth nearly $1.1 trillion, almost a quarter of the world's investment in infrastructure and energy."

GCC Secretary General Heads to Europe to Improve Ties

The Secretary General of the Gulf Cooperation Council left for Brussels on Sunday for talks with members of the European Union to explore ways to improve relations between the six GCC nations and the European Union.

Accepts Invitation

Secretary General Abdulatif Al-Zayani is visiting Brussels in response to an invitation by the EU high representative for foreign affairs and security policy, Catherine Ashton. The invitation is part of an earlier agreement forged between the EU and the GCCdesigned to increase cooperation between the two bodies.

Catherine Ashton

“Al-Zayani, who will be traveling with top GCC officials including Saad Al-Ammar, the GCC’s deputy secretary-general for political affairs, will hold bilateral talks with Ashton on Jan. 31,” said Saleem S. A. Al-Alwi, GCC spokesman.

Iran on the Table

Also on the agenda of talks will be the latest threat from Iran. This threat is a consequence of the EU’s decision last week to enforce an oil embargo on Iran beginning this coming summer if Iran does not disclose information about its hidden nuclear program. The west is worried that Iran is developing nuclear weapons under the radar of the West’s ability to monitor and halt, if necessary the Iranian nuclear program. “Hence, the visit of Al-Zayani to Brussels, where he will also hold talks with Belgian officials besides meeting several EU officials, has added significance,” said a political analyst. He also said that the EU and the GCC will most likely also discuss inaugurating negotiations to hammer out a free trade agreement.

“Both sides still look committed to negotiations toward a free trade agreement which were initiated in 1990 and gained momentum in 2007, but later failed,” he added.

GCC Planning Aid Package for Oman and Bahrain to Quell Discontent

The Kuwaiti newspaper Al-Qabas reports today that the six-nation Gulf Cooperation Council are holding discussions about sending financial aid to two of its members who have been hit by demonstrations and protests, Bahrain and Oman, as the Middle East continues to show signs of instability and violence.

The other four members of the GCC, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates are considering sending an aid package to help improve the economic and social conditions of their less prosperous neighbors. Together the wealthiest of the six GCC states are said to have about $1.35 trillion in surplus assets, gathered just in the past several years of high oil prices. The aid would be designed to help pay for housing for the needy, create jobs and improve public services in Oman and Kuwait.

Protests in Bahrain have been focused largely on demands for political and economic reforms, while the demonstrators in Oman are more concerned with political corruption and lack of jobs.

Some analysts are comparing this proposed aid package plan of the GCC with the famous Marshall Plan of the United States, which helped rebuild and support Europe in the aftermath of the devastation of World War II. The plan was named after the creator of the plan, the United States Secretary of State at the time, George Marshall.