Four years after a collapse of oil prices savaged Gulf Arab economies, private business activity in most of the region is thriving again. Yet problems with financing and regulation could cut short the boom.
Corporate executives and economists at the Reuters Middle East Investment Summit this week said the private sector's gains were vulnerable, warning growth could quickly slow if oil prices retreat or governments slow spending in order to conserve their financial reserves.
"The current good growth we are seeing is cyclical and has its roots in government spending, but there are structural impediments to longer term private sector growth," said Liz Martins, senior regional economist at HSBC.
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