Publication

This paper examines the Gulf Cooperation Council's (GCC) financial markets and banking sectors and what needs to be done to maintain regional economic growth. The authors argue that the GCC financial sector is characterized by a number of negative factors, such as the lack of bond and derivative markets and the dominance of international banks in the project finance market. To overcome these shortcomings, they suggest GCC states should increase the liquidity and diversity of their capital markets; facilitate cross-border securities trading; work to expand investment; and strengthen and unify their financial regulatory frameworks.