GCC banks will feel the benefits of renewed government spending in 2011, as liquidity in the Gulf returns to pre downturn levels, Ibrahim Dabdoub, CEO of National Bank of Kuwait, has said.
He said: “The GCC region will continue to grow, thanks initially to the stimulus packages initiated by governments, eventually supported by strengthening private sector demand. The banking sector remains vital for business activity and will continue to play a major role in regional economic development. There is ample liquidity and banks are in a good position to tap into the various government development plans that are underway and which will be key contributors to economic growth and job creation.”
He added that forecast regional economic growth rates were “promising by international standards.” He said investments in the energy sector and in infrastructure across the Gulf would be the key economic drivers in 2011.
“Within infrastructure, the utilities industry is another very important and promising sector that is attracting the attention of both governments as well as private sector. As the region develops, further spending on the utilities industry will be required to keep up with current and future economic growth,” he said.