King’s proposal to drive Arab economic growth

[BLACKEAGLE]

JEDDAH: Custodian of the Two Holy Mosques King Abdullah’s initiatives at Riyadh Economic Summit will create new economic entities and projects worth $ 30 billion in the Arab world, a senior banker said yesterday.

During the Jan. 21-22 conference that was held in the Saudi capital, King Abdullah urged Arab leaders to increase the capitals of Arab joint companies and funds by 50 percent to speed up Arab economic recovery.

The proposal, which was to channel an additional $ 10 billion to Arab economies in new funds, was endorsed by the summit. The move has been welcomed by Arab businessmen, saying it would have a big impact on increasing inter-Arab trade and investment.
“The king’s proposal will create economic entities and projects valued at $ 30 billion in vital development sectors and create more jobs for young Arabs,” said Adnan Yousuf, chairman of the Beirut-based Union of Arab Banks.

Yousuf estimated the total assets of Arab banks at $ 3.1 trillion, adding that 25 percent of their liquid money remains unused. “These bank assets account for 90 percent of the Arab economy,” Al-Eqtisadiah Arabic daily quoted him as saying. Lack of investment opportunities in vital economic sectors in Arab countries was the reason for these funds to remain idle.

He described the Riyadh economic summit as different from previous Arab summits, saying the previous ones focused on political issues without taking any major decisions to speed up economic integration.

Abdullah Al-Mubti, chairman of the Council of Saudi Chambers’ board of directors, said the readiness expressed King Abdullah to pay Saudi Arabia’s share in the increased capital funds reflected Riyadh’s pioneering role in taking Arab economies to greater growth.

Al-Mubti underscored the summit’s decision to endorse the newly amended investment agreement, saying it would encourage Arab businessmen to invest in their countries. The inter-Arab investment agreement would allow a free flow of investment and capital between states. The agreement stipulates that the member states undertake to protect Arab investors in their territories.
King

 

[Audio]

About time something gets done in this area.

Offering the youth another perspective on life and not just the.....other one....

 

[Al Bhatti]

January 22, 2013

Arab leaders commit to free trade zone

Leaders determined to clear obstacles to achieve the Arab customs union fully by 2015

Arab leaders pledged to remove obstacles to finalising a free trade zone this year and agreed to facilitate capital flows, as they wrapped up an economic summit in Riyadh on Tuesday.

“We stress our determination to complete all the prerequisites of [forming] the free trade area before the end of this year,” Arab League chief Nabil Al Arabi said at the end of the third Arab Economic and Social Summit.

The leaders, he added, were determined to clear obstacles to “achieve the Arab customs union fully by 2015.”

Saudi Finance Minister Ebrahim Al Assaf said officials working to facilitate a customs union were struggling to sort out rules on the origin of goods.

“We still have problems with the issue of country of origin... in order to establish which goods are from Arab countries and the percentage of foreign components,” he told reporters.

The regulations of the customs union stipulate that exempted goods should have at least 40 per cent local components.

Meanwhile, Arab leaders agreed amendments proposed to strengthen the flow of capital and investments between countries, Arabi said.

The Arab League leader’s assistant for economic affairs, Mohammad Al Tuwaijri, had described investment laws in Arab countries as a “repellent for investments”.

He also highlighted “significant deficiencies” in the 1980 common agreement over capital movement.

Foreign direct investment inflow dropped from $68.7 billion (Dh252 billion) in 2010 to $43 billion in 2011, a year that saw a wave of Arab Spring uprisings hitting several Arab nations.

Arab leaders commit to free trade zone | GulfNews.com