Gulf economist calls for Gulf banks merger

The general manager of the International Gulf Bank, Abdullah El-Kowaiz asked the countries of the Gulf Cooperation Council to quickly merge Gulf banks, to reduce their number, increase services, and establish corporations that work on organizing the financial markets in the GCC's states.

In press statements today he said, "Controlling expenditures is required as well as increasing the governments' income, not borrowing and linking the currencies of the Gulf Cooperation Council's countries to the dollar."

El-Kowaiz said that the crisis in Asia has not greatly affect the GCC states because their financial markets are still almost closed to the foreign investors.

El-Kowaiz also revealed that about 10% of foreign investments of the GCC states whether governmental or private, originated in East Asia last year, thus this crisis will likely reduce the income of these investments.