GCC could learn from rapidly developed European economies

24 April 2014

Region should be cautious to avoid economic imbalances, says CFA’s regional education head

Regions experiencing rapid growth such as the GCC need to be cautious to avoid imbalances in their economies, says Kate Lander, head of education for Europe, the Middle East and Africa at the CFA Institute.

The global institute, which qualifies finance and investment professionals, frequently organises educational events through its local societies across the region. The institute opened a chapter in Qatar in March.

“The growth in mainland Europe has some good examples, as the markets grew very rapidly there. Where we’ve seen problems occur is where you get many separate regulators, but what can fail to become apparent is the idea they are linked to each other and that there is a web of interaction,” says Lander.

“We’re still feeling the effect of the financial crisis six years on. Lehman’s collapsing didn’t cause that many problems – what did was the ripple through the financial markets, the complete lack of trust between the interbank market and the freezing of all credit. If you push one piece of the puzzle too hard, that could potentially unhinge the whole economy.

“It’s not about ‘getting rich’, it’s ‘getting rich quick’ that is often the problem.”

She adds that while there is a strong desire within the GCC to improve the knowledge of the markets, they face challenges retaining talent and stopping a “hit-and-run culture” from forming, particularly in the UAE.

“I personally don’t think there will be a problem attracting talent, as people will want to move to where the opportunities are,” says Lander. “But I think it’s important that organisations embed their employees in society when moving them overseas.”

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