The economic growth in the Gulf will outpace the world's industrial giants next year, according to a top financial expert.

The balance sheets of the GCC governments are very strong, in contrast to those of the G7, says Bahrain-based Gulf Finance House (GFH) chief economist Dr Ala'a Al Yousuf.

The region's private sector may struggle due to the tighter credit conditions and exit of foreign partners, but government financial strength will drive the region's economies forward, he says.

'The financial strength of the GCC governments and continued government spending will provide comfort to the private sector,' Dr Al Yousuf told a seminar in Dubai on the global economic crisis.

As a result, the region's economic growth momentum next year will match emerging market peers and will, by far, outperform the G7, he said.

GFH predicted earlier this month that the GCC economies would still grow by four to five per cent over the next two years, unless there is a catastrophic drop in oil prices.

The Gulf's economies are well protected by foreign assets of central banks and sovereign wealth estimated at nearly $2 trillion (BD756 billion) for the region, said GFH.-TradeArabia News Service