Kuwait-University-Journal-of-Law-header
Search
Journal of Law

Previous Issues

Advance Search
Year : From To Vol
Issue Discipline:
Author

Volume :9 Issue : 33 1983      Add To Cart                                                                    Download

THE ROLE OF THE PRIVATE SECTOR IN SUSTAINING GULF ECONOMIC COOPERATION

Auther : By: Dr. Zakariya Abdel Hamid Basha

            This study aims at elucidating the private sector’s role in the member states of the Gulf Cooperation Council.  One of the positive aspects in this analysis, lies in the similarity of the economic systems in the member states, which stress the significant role of the private sector in economic development.  In Saudi Arabia, for instance, its contribution to the gross domestic product has risen from 46% in 1972 to 50% in 1978.  In general, investment is mainly directed to commerce and construction, with some hesitation as regards participation in industrial development.  This could be attributed to the lack of adequate marketing and labour conditions.  The contribution of private enterprises in banking is even more conspicious, in Kuwait, for instance, almost all commercial banks are owned by the private sector with the exception of only two which are owned by the mixed sector private and public enterprises.  The same situation supervenes in Saudi Arabia, where the “Saudization” of banks has run along with the increasing role of the private sector.  In Bahrain, Oman and the United Arab Emirates, the nationalisation of commercial banks is still incomplete and many financial institutions are still retaining foreign management cadres.

 

          The incentives of investment in the private sector are mainly profit-oriented, with a general trend towards directing extra-national investments to the neighbouring oil-producing states where vast opportunities occur in real estate, light industries, hotels and other services.

          The paper, dealt in its concluding part with the prerequisites needed for fostering Gulf economic cooperation and integration.  Not only, could the private sector contribute to the coordination of development plans and programs in the Gulf Cooperation Council, but it could also play a major role in diversifying income and in giving impetus to an effective development of the Gulf region.  With the assumption that the most optimistic rate of increase in the absorptive capacity for investment has not yet been achieved in the Gulf region, local opportunities will remain unable to utilize effectively more than a small percentage of the inventible resources.  This would definitely include the Gulf investors to seek extra-national ventures provided that the climate of investment becomes inviting, particularly in the Arab World.

 

Journal of Law
Journal of Law

You are Visitor No.

76116

Journal of Law
Journal of Law
Tell your friendsJournal of Law
Journal of Law

Last Updated

May 18, 2017

Journal of Law
Journal of Law
Journal of Law

Please enter your email Here to receive our news

Journal of Law