Gulf may escape contagion

Rasheed Al Maraj, the governor of the Central Bank of Bahrain, said Gulf markets are unlikely to see a major fallout from the slump in US subprime mortgages as most local companies have their core businesses in the area.

In an interview with Bloomberg, Al Maraj said he was "confident" because the focus of most institutions has been on the business in the region. "I'm pretty sure there has been minimum damage", he said.