Bahrain's demographic profile and economic diversification push would help it tide over the oil price cycle, the Economic Development Board's (EDB) chief economist Dr Jarmo Kotilaine has said.

The GCC has some of the strongest fundamentals in any region of the world, said Dr Kotilaine during the opening panel discussion at the 4th Euromoney GCC Financial Forum yesterday (February 24), said a report in the Gulf Daily News (GDN), our sister publication.

“The young nature of the demographic profile is very favourable and economic diversification continues to open new opportunities across the spectrum of sectors.”

According to him, better connectivity and integration, both regionally and with the global economy, was accelerating growth in the region.

“Large investments are being made in transportation links both within the GCC and between the GCC and the world as the region becomes highly integrated within global trade and travel flows.”

The EDB chief economist said he was confident that the dynamics of the non-oil economy would remain favourable in spite of the recent volatility in the oil price.

We would like to show investors the exceptional opportunity there is to capitalise on wide-ranging and sustainable investment themes,” he said.

Dr Kotilaine was moderating a discussion involving Qatar Central Bank director of research and monetary policy Khalid Alkhater, West Shore Funds chief global strategist James Rickards and Ashmore Group GCC regional director John Sfakianakis as panellists.

Questions that came up for discussion included: What does a reluctant global economic recovery mean for the GCC? Oil price volatility and its impact on the GCC? And what are the implications for global capital flows, interest rates, commodity prices, the dollar? China, Euro zone, US, Japan, Emerging markets: Does geopolitics matter? and Is the financial system fit for purpose?

Earlier, in his opening remarks, Euromoney Conferences director for emerging markets Richard Banks said GCC governments remain dependent on oil revenues while some have started working on economic diversification programmes.

“This year and beyond will be more complex and challenging than the recent past for this part of the world and the global economies,” he said.

“There are a number of factors that seem to drive the market and some of these include: a sustained and significant surge in non-Opec output; continued supply despite potential geopolitical risks in oil producing regions; a period of softer than expected global demand; a strong dollar and a strategy by Saudi Arabia to protect market share rather than headline prices.” - TradeArabia News Service