Stakes in the sand – Gulf states plot a new financial integrity

Gulf states have responded to the global economic downturn, increasing international regulation and the ‘Arab Spring’ by establishing new public authorities or extending existing mandates to curb financial crime. There is some notable progress, reports Paul Cochrane, but enforcement continues to lag.

When the recession hit the Gulf Cooperation Council (GCC) countries (Saudi Arabia, Bahrain, Qatar, the United Arab Emirates - UAE, Kuwait and Oman) in late 2008 it signalled the end of a decade of rampant economic growth. With governments closely tied to flailing real estate developers and other major businesses, accountability and auditing took on a renewed focus as economies contracted. At around the same time, regulators in the United States, Britain and elsewhere bolstered their focus on corruption abroad, and GCC states had to strengthen regulation at home to retain and attract foreign direct investment.