UAE Emerges as Most Interconnected Financial Market in the Gulf Cooperation Council Region

The Arab Monetary Fund confirmed that the UAE has the highest interconnected financial markets in the region.

In a study on “Financial Interconnectedness in the GCC Countries,” he revealed the change in financial ties between the economies of the GCC countries during different periods, especially during the global financial crisis, which indicates a change in the path of diversification of stock portfolios over time in the region. Moreover, the results indicated The UAE is emerging as the most interconnected market in the region.

The Arab Monetary Fund study touched on the development of financial ties within the Gulf Cooperation Council region and the impact of volatile periods on the interconnection between financial markets from 2003 to 2023. The study also provided an analytical framework for policy makers that contributes to continuing efforts aimed at enhancing financial integration between the economies of the Gulf Cooperation Council countries. For the Arab Gulf countries.

The countries of the Gulf Cooperation Council share economic interests and priorities, which prompted them to establish the Cooperation Council for the Arab States of the Gulf in 1981 in order to achieve cooperation and integration in the economic and financial fields. Since then, the six member states have signed multiple agreements within the region to enhance economic integration between them, in addition to… To adopt joint regulations and legislation in the economic fields.

The study presented a set of recommendations for policy makers, as the results indicate that achieving a higher level of financial interconnection within the Gulf Cooperation Council region remains a challenge.

Therefore, it is crucial for countries in the region to align their goals and intensify their cooperative efforts on multiple fronts, and various measures, such as harmonizing market practices, establishing multilateral arrangements to encourage stock trading among countries in the region, and developing a regional clearing and settlement framework for stocks and securities, can help. Finance will help achieve this goal, which will help stimulate capital flows and enhance regional integration of financial markets.

2023-09-15 22:06:37
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