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The Gulf countries' current account surplus is expected to reach $3 trillion this year due to the high crude oil prices, said Ahmad Humaid Al Tayer, Chairman of Emirates Bank Group, yesterday.

Delivering a keynote address at the opening session of the International-Arab Banking Summit 2007 'Euro-Arab Banking Dialogue' in Brussels yesterday, Al Tayer said the revenues of the GCC states have surpassed even those of China's huge foreign reserves, to register a record $1,600 billion in foreign assets.

"Given the huge inflow of cash due to higher crude prices, the current account surplus of the six Gulf countries will soon touch the $3 trillion mark," he said.

The UAE's economic diversification strategy according to Al Tayer is working extremely well for the federation with the non-oil sector gaining support from the strategy.

"The diversification programme, lead by the country's policymakers, is helping the UAE to prepare for eventual oil price moderation and the gradual reduction in domestic hydrocarbon reserves," he said.

The UAE's GDP surged 23 per cent last year to $163 billion. The economy is expected to grow further this year with the GDP exceeding $188 billion.

The UAE's banking sector, he said, gained substantially from the boom with the total assets of UAE banks growing 35 per cent $234 billion.

The UAE banking sector continues to grow in 2007, with total assets reaching $242 billion at the close of the first quarter this year.

Despite the high growth achieved by the UAE's banking sector, Al Tayer said there are some key challenges the sector is likely to face in the coming years. As a result of WTO related pledge, the country has already opened up its market to more foreign banks.

The current state of hyper competition where banks as well as other fin-ancial institutions offer lower pricing to gain market share is putting a squeeze on the margins.

He said that the local banks are facing challenges while competing with their international counterparts due to the relatively small size.

"The mega projects, in infrastructure development, hydrocarbon industry, airline industry valued at over $1 trillion, are far too large for the National banks to take on their balance sheet," he said.

However, he said that the local banks are changing fast to adapt to the new realities.

http://www.zawya.com/Story.cfm/sidGN_29062007_10135588/SecMarkets/pagMoney
 

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Are we talking here of 3 TRILLION US Dollars?!!! This is enormous, I do hope for the GCC countries that they reinvested the money so that it even gets more in the future!
 

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Eros
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And PPL are dying from hunger in Africa and all over the world .........
 

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What's ur point ?? ^^

Its not like its our fault... Our countries do give money... Kuwait especially is one of the biggest Donor countries u have out there...
 

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i seriously think arab countries don't deserve that money..........no offense but they had the same chance in the 1970's..........their population became extremely unproductive....no offense...but i think they will spend at least half the money shopping in london and buying carz.
 

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Regardless, its not up to you to decide who deserves and who doesn't... ^^

And.. I'm not totally certain.. But i'm pretty sure they are investing it much more wisely than they did before... You're right.. They had a similar chance/opportunity in the 1970's or some decades ago... Things are better now...

But your right, not soo much for the reasons u said.. but because half the petro-dollars will go to sheikhs and amirs/princes... Thats besides what gets swindled and siphoned out of the country's budget itself..
 

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Eros
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What's ur point ?? ^^

Its not like its our fault... Our countries do give money... Kuwait especially is one of the biggest Donor countries u have out there...
it wasn't my point :)
it's just that we live in an unfair world !!!
 

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Discussion Starter · #9 ·
This means the UAE has *barely* surpassed Bahrain... :eek:hno:

Anyways, kudos to them..
i would like to know where ru pulling these comparisons from? do ur research pal - this year bahrain's banks assets stand $187.4 billion (link)compared to $242 billion (FIRST QUARTER) for he UAE.would u seriously think given the size of their economies the UAE would have less banking assets than bahrain?it's twin economies and surpluses make the UAE a financial superpower of the gulf with the most sound and mighty fiscal reserves,so next time dont feel sorry for them.read this month's middle east magazine and u will know why.
 

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Well i had seen a pie chart not soo long ago.. Though its sort of outdated now... Bahrain accounted for about half of the financial sector according to certain measures... Only a few yrs ago...

The UAE did an impressive job catching up... So i guess it surpassed Bahrain in terms on amount of financial assets... Maybe not barely like i said.. Anyways... Bahrain FOR YEARS has always been the financial centre of the gulf, if not the Middle East altogether...

I wonder what's the concentration of financial institutions in the UAE...

would u seriously think given the size of their economies the UAE would have less banking assets than bahrain?
The UAE for a long long time had an economy far bigger than that of Bahrain... And yet, Bahrain until very recently had much greater banking assets... So please keep that attitude to ur self, and put a lid on ur presumptuosness, its a bit outa control...

Bahrain still has some of the best, most up to date, up to international standards regulation... So the UAE is not soo much a financial superpower in the Gulf like u say, if we're talking about the strength and reputation and history of its financial sector..
 

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Discussion Starter · #11 ·
Bahrain still has some of the best, most up to date, up to international standards regulation... So the UAE is not soo much a financial superpower in the Gulf like u say, if we're talking about the strength and reputation and history of its financial sector..
dude i'm not being brash or arrogant but u gotta stop whatever ur smokin and let this uneasy truth settle in u,true bahrain was the banking major for years b4 DUBAI,but i reapeat that the UAE is the current financial superpower of the gulf without a doubt.The world economic competitiveness report placed the UAE in the 6th (highest rank in west asia) position among global majors in terms of sound fiscal policy and the highest rank in the arab world for financial law and regulations.The DIFC was quoted as having the best of every major financial institutional regulations as they borrowed a leaf from "everyone's" book to get their regulations in place.But it is still a work in progress.Expect many major surprises in the years to come.:cheers:
 

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That's a whole load of money concentrated in just one area!! Hope to see the gulf countries build up on their foreign assest!!

I know qatar is seriously doing that by purchasing major properties in western europe, in addition to purchasing shares in sainsburys, maybe centrica and thames water and other notable investments in the UK!
 

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Patriotic Emirati
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i seriously think arab countries don't deserve that money..........no offense but they had the same chance in the 1970's..........their population became extremely unproductive....no offense...but i think they will spend at least half the money shopping in london and buying carz.
Weren't you banned for ur racist attitude toward the Arabs? :nuts:

cyborg81, the UAE has surpassed Saudi Arabia this year :)
 

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dude i'm not being brash or arrogant but u gotta stop whatever ur smokin and let this uneasy truth settle in u,true bahrain was the banking major for years b4 DUBAI,but i reapeat that the UAE is the current financial superpower of the gulf without a doubt.The world economic competitiveness report placed the UAE in the 6th (highest rank in west asia) position among global majors in terms of sound fiscal policy and the highest rank in the arab world for financial law and regulations.The DIFC was quoted as having the best of every major financial institutional regulations as they borrowed a leaf from "everyone's" book to get their regulations in place.But it is still a work in progress.Expect many major surprises in the years to come.:cheers:
Fair enough, i guess i'm not very up-to-date with my info... But usually when i think of a Superpower, its when a country surpasses other countries by more than just a arm's length... And when the Banking assets reach multiples of the GDP..

Anyways, whether they're a superpower already or not isn't soo important, as it seems they surely will be in a matter of yrs (assuming they aren't already).... Of course Bahrain won't give up without a fight.. hehe... We have our own new Financial district/centre, of which phase 1 was just finished..
 

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That's a whole load of money concentrated in just one area!! Hope to see the gulf countries build up on their foreign assest!!

I know qatar is seriously doing that by purchasing major properties in western europe, in addition to purchasing shares in sainsburys, maybe centrica and thames water and other notable investments in the UK!
Does that really count...!? Is it a company that bought sainbury or some Sheikh!?
 

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It was an investment company QIA that has the prime minister and the crown prince in addition to other ministers sitting on its board!

In addition to that, al-dair, which is a govt owned real estate company and QPI, which is an investment company that purchases assest in the energy industry are also doing some serious shopping.
 

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Fairouzy
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i seriously think arab countries don't deserve that money..........but i think they will spend at least half the money shopping in london and buying carz.
:lol: :lol: :lol: :lol:

That's a whole load of money concentrated in just one area!! Hope to see the gulf countries build up on their foreign assest!!

I know qatar is seriously doing that by purchasing major properties in western europe, in addition to purchasing shares in sainsburys, maybe centrica and thames water and other notable investments in the UK!
Yup, lets not forget the Airbus assets, which are considered integral to our foreign assets investments, as well as the overseas real-estate develpment.

Weren't you banned for ur racist attitude toward the Arabs? :nuts:

cyborg81, the UAE has surpassed Saudi Arabia this year :)
Yup ;)
 

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More accurate information/sources indicate Bahrain has now more than 400 financial institutions...

Furthermore ''The CBB's latest bulletin of monthly statistics shows the consolidated balance sheet for May 2007 stands at $209.6bn.''

:nuts:
 
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