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Gulf Finance House (GFH) investment bank held a seminar to update its clients on the current global financial crisis.
The Investor Seminar, held in Dubai, was aimed at providing GFH clients an understanding of the latest global financial developments and the implications for the GCC economies.
Speakers at the seminar featured Roger Bootle, managing director of London-based economic research firm, Capital Economics, and Dr Ala'a Al Yousuf, chief economist at GFH.
Mr Bootle said the US, UK and euro zone government bailouts, currently amounting to $595 billion, are not big enough to prop up the banking system.
"They will need to inject perhaps more than $1 trillion. And they will do it. There will not be a financial collapse," he said.
Dr Al Yousuf, who focused on the implications for the GCC, said the story unfolding was of two halves - the balance sheets of the GCC governments are very strong, in contrast to those of the G7.
The region's private sector, on the other hand, may struggle due to the tighter credit conditions and exit of foreign partners.
"The financial strength of the GCC governments, however, and continued government spending will provide comfort to the private sector," said Dr Al Yousuf.
