Top economic guru and chairman of Oxus Investments, Surjit Bhalla, delivered the opening keynote speech at the Arabian Hotel Investment Conference at Madinat Jumeirah, setting out an optimistic canvas for continued growth of the global economy.

Heading the inaugural Indian Summit session, Bhalla said there was every indication that despite the housing and financial crises in the United States, there was a reasonable chance of avoiding recession – and this would be due to the impact of high growth rates in India and China.

He told the first day audience of more than 1,000 registered delegates that ten years ago, the US accounted for 25 per cent of world GDP growth, while India and China collectively accounted for nine per cent.

"Today, the US has dropped to 20 per cent but India and China economies have more than doubled and now together also contribute some 20 per cent,” he said.

"This gives us a hint as to why current circumstances will not result in global recession or depression."

Bhalla also stressed that the slowdown would not last long and suggested that inflation was another temporary phenomenon.

This positive viewpoint set the stage of the largest ever Arabian Hotel Investment Conference which has attracted the industry's power players to Dubai to help steer the development of the hospitality sector in the Middle East and the wider world stage.