By KUNA
Abu Dhabi : The economies of the Gulf countries face different challenges including price hikes, unemployment, and economic diversification, said a report issued here Wednesday.
The annual report of the Union of Chambers of Commerce and Industry of the Gulf Cooperation Council (GCC) said that if the region’s countries succeed in controlling financial markets, small and medium corporations would benefit from the available liquidity.
It emphasized the importance of small and medium corporations in the diversification of income sources and employing more citizens.
Despite the different regional political developments in 2007, the GCC countries continued to achieve high economic growth due to the constant increase of oil prices, it said.
The hike of oil prices was caused by the increasing demand which is a consequence of the growth of the world economy, the achievement of maximum productivity capacity, and the political instability in oil producing countries, it noted.
A major economic development in 2007 was the establishment of a joint Gulf market that will boost the role of the private sector in economic and social development, whether in the trade, investment, infrastructure, or the services sector, the report said.