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Manama - The 4th GCC Financial Forum is all set to provide an excellent platform for financial experts and national leaders to discuss the decline in oil prices and its impact on the global economic outlook, its recovery and its effects on regional financial markets. Organised by Euromoney Conferences, the forum will be co-hosted by the Bahrain Economic Development Board (EDB).
During an interview with Euromoney Conferences, John Sfakianakis, Regional Director of GCC at Ashmore Group, commented that, for most regional economies, oil prices are an essential component of their revenue structure and an essential lifeline for those who rely on oil production revenue. The falling prices have caused a knock on effect, in that they have changed market fundamentals and will impact the financial sector and investment capital flows.
According to Mr Sfakianakis, when oil prices go down, oil producing countries are less well-off and oil importing countries are better-off, as this is the natural cycle of things. Countries such as China and India as well as other oil importing countries benefit greatly from lower imports in terms of lower import expenses as well as lower current account deficits. With prices declining, these oil producing countries will be forced to cut investments when compared to oil importing countries.
Furthermore, he said that geopolitics is always important but its role shouldn't be exaggerated to produce misinformed decisions, as the GCC is a very cooperative region. The Gulf as a whole seems to be doing well economically despite the geopolitical hype.
Mr Sfakianakis continued to say that we have seen a smooth transition to the King of Saudi Arabia, King Salman bin Abdulaziz Al Saud, who actually already had an integral leadership role so is not "starting from scratch" as it were, and this should dispel worries, particularly amongst foreigners. The issue of transition is a perfect example of how foreigners miscalculated the perception of risk and geopolitics. "It was the quickest transition in the modern history of the Kingdom and the region," he stated.
In conclusion, he said for those that aren't aware, the milestone decision to liberalise the Saudi Tadawul Index is extremely significant, as until now it has been the only stock market of essential size that remained closed to foreigners. It opens the Saudi financial sector which in turn will usher in a new era for GCC countries, as it is not a zero sum game; what benefits one GCC country benefits the others. Investors will be able to gain exposure to Saudi Arabia's formidable oil economy by investing in its market. The Kingdom is the world's largest oil exporter, and one of a handful of OPEC nations with significant spare capacity that could swing markets.
This year, the Forum is expected to attract a high level audience of more than 400 financial experts and professionals from the region, with top senior business heads and government officials keen to discuss and debate the future direction of the region's financial services.
A major highlight of this year's Forum will be an exclusive session, an Open 'Town-Hall' discussion with His Excellency Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain (CBB). This is a new and interactive format which will allow audience members to put their questions directly to the Governor.
In addition, the two-day Forum will feature a high-profile "Macro-panel" which will examine the impact of the current global macroeconomic environment on the GCC and the outlook for the region led by internationally renowned American portfolio manager, lawyer, economist and Chief Global Strategist, James Rickards.
A range of topics, will be discussed at the Forum this year and will include; Regional finance in the global market place; the role of private capital in public projects; Bahrain's real economy; the growth of local companies and the pipeline of hydrocarbon projects.
A working agenda is available on the Euromoney website www.euromoneyconferences.com/bahrain. This year Euromoney's multi-channel approach will utilise social media platforms such as Twitter: inviting interested participants to voice their opinions using the hashtag #emBahrain during the various sessions. To watch proceedings from 2014, please visit the Euromoney Conferences Online section of the Euromoney website.
Euromoney is the world's leading organiser of conferences for cross-border investment and capital markets for portfolio and direct investors, financial intermediaries, corporations' governments,' banks and financial institutions. Since the late 1970s Euromoney Conferences has run events in more than 60 countries.
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For further information please contact:
Euromoney Conferences
Tel: +44 (0)20 7779 8708
Fax: +44(0)20 7779 8795
Email: rsvp@euromoneyplc.com
© Press Release 2015
