GCC nominal GDP is expected to grow by 4% in 2012. GCC Economic growth will be mainly driven by Qatar, Saudi Arabia and UAE in 2012. The 9th 5 year development plan of Saudi Arabia between 2009-14 gives emphasis to education, Social and Health, Economic Resources, Transportation and Communication, Municipal and Housing Services. The 8th 5 year Plan of Oman between 2011-15 gives emphasis on infrastructure. The recent fiscal policies of Oman also focus on education, health and civil development expenditure. Dubai is introducing a master plan for urban development that is expected to open up about 950,000 jobs by 2020.

In Qatar the aggregate GDP growth in 2012-2016 is expected to average to 6.9% with Hydrocarbon GDP growth expected to be 4.4% and Non- Hydrocarbon GDP to be at 9.1%.Services will be one of the major drivers of the economy. Qatar’s investment pattern will reflect the decline in hydrocarbon capital spending In Qatar between 2011-2016 the total gross domestic investment is expected to be about QR820 Billion out of which the Private hydrocarbon sector is QR 84bn and Private non-hydrocarbon sector is QR 389bn. Gross investment is expected to average 25% of GDP over 2011-16. The ratio of non-hydrocarbon private investment to total GDP could reach 15% by 2016, nearly double it share in 2009.

The positive growth in the GCC region is going to invite investments from Overseas. Huge project developments in GCC require massive funds from overseas investors. Projects prevail in Qatar non-hydrocarbon sector mainly in real estate and infrastructure. In Saudi the major projects in non-hydrocarbon sector include King Abdullah Economic City and Jizan Economic City. Major projects in UAE are witnessed in Jebel Ali area. Major projects in Oman include Duqm New town and Deep water Gas line worth $24bn. In Kuwait the major projects include “City of Silk”.

In Qatar the Corporate tax for Non – Qatari Companies is currently 10% unlike earlier it was on variable slabs upto 35 percent. Many initiatives are brought by Qatar Exchange in recent years. In 2010 Universal trading platform launched by Qatar Exchange (QE) improve order system and attract diverse investor base, puts Qatar Exchange in par with major global exchanges .In 2011, Qatar Exchange was connected by Secure Financial Transaction Infrastructure, a worldwide network that connects banks and brokers across the world to exchanges in Europe and the US. W.e.f Feb 2011 Qatar Exchange trading hours has been increased to three and a half hours , which helps both international and regional investors. The 2011 Global Competitiveness Index report from World Economic Forum has placed Qatar at 14th position out a total of 142 nations covered .The P/E and P/B of Qatar exchange is currently 8.92 and 1.7 respectively and it appears attractive when compared to other Global exchanges

The tax incentives, initiatives from Qatar exchange, competitiveness of Qatar economy and the attractive price earnings will encourage global investors to consider Qatar. Recently many Qatari banks namely QNB, Doha Bank and CBQ have tapped the global market with bond issues and thereby provided opportunity for global investors. The renewable energy segment particularly the solar and wind energy also provide opportunity for global investors in the GCC region.

We have seen major investments made by GCC Soverign wealth funds globally. In 2010 Kuwait Investment Authority had invested 800m in Agricultural Bank of China. In April 2010 Abu Dhabi lands 15% stake in Gatwick for £125m. In 2010 Petrovietnam Insurance has allowed Oman Investment fund to acquire a 12.6% equity stake for US$42.1 million. Qatar Soverign funds have also invested globally. In June 2010 Qatar Investment Authority (QIA) invested $2.8bn in the initial public offering of the Agricultural Bank of China. Qatar Diar agreed to take a 5 per cent stake in Veolia Environment. In April 2010 it bought a 40 per cent stake in hotel chain Fairmont Raffles from Kingdom Holding in a deal valued at $847 million. Qatari Diar, which counts London’s Chelsea Barracks among its most high-profile overseas assets, has more than 80 projects worldwide worth about $60 billion.

Qatar Investment Authority investment arm has stakes in British supermarket chain J Sainsbury, Barclays Bank, the London Stock Exchange and Credit Suisse. Qatari Diar bought Harrods for a reported $2.3 billion. In August 2009 Qatari government acquired 10 percent equity in Porsche. In Dec 2009 Qatar investment acquired 17 percent in Volks Wagen. Qatar backed Paramount Services Holding Ltd injected 500mn Euros through convertible bond into the merger of Greece’s Euro bank and Alpha Bank in 2011.In March 2011 Qatar has indicated it would invest 300m Euros in Spanish banks. Qatar also plans to invest $4 billion Euros in Spain. In March 2012 Qatar has indicated plans to invest 100 million Euros in Bulgaria in the sectors of agriculture, tourism and infrastructure. In Oct 2011 Qatar holdings made investment of $1billion dollars in European Gold fields. These trends indicated that GCC region will be an opportunity for global investments.