The International – Arab Banking Summit
Opening Speech of
Dr. Joseph Torbey
Chairman, World Union of Arab Bankers & President of the Executive Committee, Union of Arab Banks
Brussels- Belgium
28-29 June 2007
H.E. Mr. Guy Quaden, Governor of the National Bank of Belgium,
H.E. Ambassador Abdel Wahab Derbal, Head of Delegation of the League of Arab States in Brussels,
Mr. Adnan Yousif, Chairman, Union of Arab Banks,
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
It is our pleasure as the World Union of Arab Bankers to cooperate with the Union of Arab Banks in organizing this international event, gathering today the elite group of government representatives and private sector leaders, to discuss emerging issues related to the world’s banking sectors which carry significant implications on our economies and people.
It is not a coincidence that the Union of Arab Banks gathering most of the Arab Banks and Financial Institutions, and being the largest banking and financial consortium in the region and the true representative of the Arab Banking industry, along with the World Union of Arab Bankers, grouping leading bankers in the Arab world, are joining efforts today to make this Summit the largest conglomerate of leading institutions and leading bankers.
If I wear the hat of the Union of Arab Banks as the President of its Executive Committee and Former-Chairman, I can comfortably say that this international Summit has turned to be the premier and most preferred platform to found business alliances among banking and financial institutions, working in these industries around the globe.
If I wear the hat of the World Union of Arab Bankers, I can say that through our Organization, Arab and international bankers can come closer together to deepen their partnerships, create synergies, and enrich their business links, thus transforming the challenges of globalization and liberalization into opportunities for openness and growth in the region and the world.
This fits perfectly with the role and mission of the WUAB, in our Euro Arab Banking Dialogue Summit today, organized in the beautiful city of Brussels, to give the opportunity to representatives of the public and private sectors, as well as leading bankers to meet and discuss issues of utmost concern to the Arab and international economies. Our dialogue will be geared towards advancing viable solutions and developing means for partnering and exchange of constructive ideas.
This newly emerging banking Organization, WUAB, which is based in Beirut, together with the Union of Arab Banks at the Arab Banking House, strives to establish and develop ties among Arab bankers and finance professionals, to foster cooperation among them, in view of serving their common interests, and further developing the Arab banking and financial industries, and develop the Arab and international web of business relations.
Our mission as the World Union of Arab Bankers will focus on becoming the premier professional Arab organization for Arab bankers and finance professionals or those of Arab origin, which represent their role in their communities, as well as in their local, regional and international economies.
In addition, our vision is to become the leading platform of communication, relations, and advocacy, spreading and exchanging knowledge and information for, and about, Arab bankers and finance professionals around the globe.
Your Excellencies,
Ladies and Gentlemen,
We, as bankers and finance professionals, are witnessing today, perhaps, the greatest transformation of our World’s economies and financial markets towards greater openness in all directions.
The wave of accelerated globalization, liberalization of trade in financial and non-financial markets, continuous developments in the e-business, and increased partnerships between regions of the world, have been creating a time of tremendous challenges, nevertheless a time of significant opportunities.
The Arab region perceives the importance of being an effective part of the global economy, affected by the ongoing changes, and also affecting in the direction of these changes. It has been witnessing an ongoing economic boom over the past few years, stimulated mainly by the observed outstanding oil price increases which injected great liquidity in domestic markets.
There is currently some USD300 billion pursuing viable investment opportunities in the region. This constitutes a valuable opportunity for the Arab countries to support their economic and social development programmes, and to foster the openness of their markets in the face of much-needed integration moves.
The Arab countries have well benefited from the reforms that have been implemented in their economies and financial markets. Today, several Arab economies are well outperforming many emerging economies in the world, with overall economic growth for the region exceeding 10% as of end-2005. The largest part of the region is growing today as a major economic and financial hub for business, finance and investment.
In addition, some Arab markets specifically, Bahrain, Dubai, Qatar and Saudi Arabia are building competitive financial centers to attract both Arab and international capital as well international financial and banking institutions.
The Arab region possesses huge economic, financial and human potentials, which are not yet comprehensively exploited. The oil wealth, natural resources wealth, capital wealth inside and outside the Arab region (some USD 1.5 trillion in foreign assets), competent and well-experienced human resources, emerging petro-dollars from the observed oil boom, and a strong banking and financial sector in general are just some examples of the Arab economic and social power.
These are definitely positive elements and developments. On the other front, however, the Arab region is currently facing several socio-economic problems, which are hindering further growth and development.
Today, the Arab countries, in general, face high unemployment rates reaching 15% of total labor force, and some 80 million new individuals are expected to enter the labor markets by the year 2020. Also, the Arab countries (especially non-oil countries) are witnessing low personal incomes, which reduce aggregate demand and hence hamper further economic growth. In addition, poverty is both high and growing in the Arab region, owing to low incomes and limited new job opportunities.
Besides, the Arab world faces the problems of limited economic diversification, low rates of economic exchanges (inter-Arab trade constitutes only 10% of total trade, and inter-Arab investments constitute less than 1% of GDP), and limited integration in the world economy (the region’s share in global trade and FDI is less than 4%).
In this sense, then, the Arab bankers and finance professionals have a significant role to play in opening up the Arab financial markets for better inter-regional banking ties, especially now several Arab banks have succeeded in expanding in some regional markets. This cross-border regional expansion by the Arab banking sector, if it continues in the future in the same fast pace, shall help in supporting the regional economic integration, especially if the sector enhances its role in promoting inter-regional economic and investment exchanges.
Also, Arab bankers and finance professionals should seek feasible business solutions for the significantly emerging petrodollars, chasing viable investment opportunities in the region. They should work closer together today to direct these funds to the currently needing Arab economies which have promising prospects and have proved a significant record of impressive performance in the past few years. This could certainly help these economies in combating unemployment problems and support the growth and development of their banking sectors.
This is on the regional level; on the international level, Arab bankers and finance professionals have a strategic role to play in getting the Arab economies and financial sectors on one side, and the European as well as other international partners on the other side, to come closer together, so as to shape a better future for our region and the world at large.
Our increased partnerships, on both the economic and financial fronts, will allow us as Arab bankers to better reach your growingly developing markets, and will allow you, as European and international bankers, to reach our increasingly open markets.
We can join forces and synergize our potentials to support the financing of infrastructure and economic projects in our economies. We can also act as catalysts for attracting investments, both FDI and portfolio investment, to our nations. In addition, we can further strengthen our role to expand the scope of mutual trade, investment and financial exchanges.
Certainly all these activities will reposition our role, as bankers and finance professionals, as an engine of growth and development in our economies, to create more job opportunities, and alleviate poverty in our nations.
I truly believe that this is the profound and logic reason for our presence and role.
In closing my speech, allow me to express our hope for a rewardable dialogue today, and wish you all the success in your endeavors.
Thank you.
