Oman's economy is expected to grow 6.4 per cent in 2012 following strong performances by GCC economies in 2011 despite weak global growth and the Arab Spring, according to the Institute of International Finance (IIF).
Speaking at a press conference on the sidelines of IIF's annual meeting of MENA bank executives at Shangri-La's Barr al Jissah Resort & Spa on Tuesday, George Abed, senior counsellor and IIF director for Middle East and Africa, hailed Oman's efforts in economic diversification.
He said, "We witnessed very solid growth in Gulf economies last year, particularly in Oman, despite the struggling global economy and Arab Spring. We expect Oman's economy to grow higher than last year - at 6.4 per cent in 2012.
"The major part of this growth in Oman will not come from the oil and gas sector. Oil and gas has done a lot for government finances and the development of the country, but the major chunk, almost 70 per cent, of the growth will be from the non-hydrocarbon sector."
Abed said that Oman is "pushing economic diversification further through the development of Duqm and other free-zone areas," which will be supported by 'firm' oil prices.
He added that the GCC will have a record current account surplus of US$350bn this year which will further boost GCC countries' foreign assets in the global markets. "The GCC's foreign assets will amount to US$2.1tn this year and will remain crucial for the times when oil prices drop," added Abed.
Charles Dallara, managing director of IIF, said that IIF has recognised Oman's strong economic growth and banking sector performance.
He said, "Oman's banking sector is quite insulated from the adverse impact of the global financial crisis and the eurozone debt crisis."
© Muscat Daily 2012
