Gulf banks press on with modernization

The creation of financial centres and the opening of banking markets in the Gulf to foreign players are broad themes across the region, which is riding a wave of liquidity. Bank consolidation should be the next consideration. John Hamilton reports.

FINANCIAL SERVICES ARE a growth industry in the Gulf, with major financial centres being developed and previously closed economies modernizing investment laws and opening up to foreign banks.

The boom that the region has been enjoying thanks to high oil prices has blown a breath of fresh air through financial systems. Words like liberalization, modernization and competition are today being used to describe developments in markets that used to be determinedly hostile to direct foreign participation.

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