The growing economic might of the Gulf Cooperation Council (GCC) countries was again highlighted in the recently held financial summit between the City of London and the GCC countries. The meeting held at the Merchant Taylors' Hall in London on 19 July discussed the latest financial sector developments in the Middle East and North Africa, and opportunities for UK/GCC partnerships. Organized by the Middle East Association (MEA) in partnership with the City of London Corporation, the conference, now in its fifth year, is the leading London event promoting cooperation between the City of London and the GCC countries. Michael Thomas, director general, MEA, said “the GCC countries are playing an ever more important role in investing in projects across the MENA region and beyond. This is evidenced by the fact that with us today we have five top business representatives from Palestine who are involved with major projects, one of which, a construction project valued at $800 million, is being financed by Qatari Diar.” In a keynote speech, Alderman Nick Anstee, Lord Mayor of the City of London, highlighted the pivotal role of the City of London in global trade and development and discussed the challenges and opportunities created by the key drivers of diversification, demographics and the eastward shift in the global economy. “Gulf companies are international players; Gulf centers are global business hubs, he said, adding that “London can flourish if it continues to be effective and competitive - in delivering business services, and mobilizing capital for them and with them.” He further said that the GCC countries are no longer - if they ever were - simply sources of hydrocarbons and investment funds. They are not peripheral to the modern world economy - they are at the heart of it. It is a responsibility for them - and a challenge for us. They are no longer just passive strategic investors, they are also venture capitalists, deal-makers, suppliers of private equity to world business. The flow of capital and expertise is firmly two-way,” he noted. Lord Sassoon, commercial secretary to HM Treasury, highlighted the strong relations between the UK and its partners in the Gulf and the priority attached by the new UK coalition government to developing commercial relations with the region. Pointing out that trade growth is central to the coalition government's strategy, he said: “It is for this reason that, as we look across the globe, the Gulf stands out as an extremely significant region to be working with. The Gulf is the UK's 7th largest export market and has a growing consumer market. And the Gulf states are critical to the inward investment that the UK vitally needs. As Treasury ministers, we recognize that it is by building strong relationships with our partners in the Gulf that we will reinforce our commitment to working together. To that end, and as part of the government's wider Gulf initiative, we will be making regular visits to the Gulf starting this autumn.” He underscored the potential opportunities for cooperation, including insurance, expertise to support financial services reform, and expertise and services to support Gulf infrastructure development, noting the establishment of the new Treasury unit Infrastructure UK. Shashank Srivastava, acting CEO, Qatar Financial Centre Authority, discussed the increasing role of the GCC, and Qatar in particular, as a destination for international capital. “The global financial crisis in some ways provides the context for the GCC's and Qatar's emergence as a capital destination. While the impact of the crisis has varied across the GCC nations, Qatar, in particular, has weathered it exceptionally well with the result that our role in the GCC has increased still further in significance. The driving force behind this great role, and the foundation for all our ambitions, is our economic strength,” he said. He added “we believe that Qatar will be a key part of the global trend which is seeing a shift in the economic balance of power towards the emerging world, especially the BRICS, but also towards the Middle East and Africa.” QFCA is looking to build a world class financial services marketplace focusing on the creation of a global business hub for three core markets - asset management, re-insurance and captive insurance, he said. “I am confident that we will develop still closer ties with the City as we continue to progress towards our strategic objectives,” he pointed out.
