The International Arab Banking Summit
“The Future of MENA: Impact on the Global Economy”
Opening Speech of
Dr. Joseph Torbey
Chairman
World Union of Arab Bankers
Rome – Italy
23-24/6/2011
Honorable Stefania Craxi,
Secretary of State for Foreign Affairs, Italy
Mr. Adnan Ahmad Yousif,
Chairman of Union of Arab Banks,
H.E.Mr. Mr. Guido Rosa,
Vice Chairman, Associazione Bancaria Italiana (ABI),
H.E. Sheikh Abdullah Bin Saud Al-Thani,
Governor, Qatar Central Bank
H.E. Mr. Abdul Aziz Abdullah Al Ghurair,
CEO, Mashreq Bank, UAE
Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
I am pleased to welcome you to the 2011 International Arab Banking Summit, in the beautiful city of Rome which gathers today this highly representative and distinguished elite of public and private sectors, as well as the banking community from regional and International institutions.
I would also like to thank the World Bank, Associazione Bancaria Italiana and The European Banking Federation, for cooperating with us in organizing this Summit.
Distinguished Audience,
In the midst of the great historic changes and transformations that expanded across many Arab countries in the Middle East and North Africa, talking about the economy may not seem a hot issue at this stage. Yet, considering the depth of these transformations, motives and interpretations, a logical conclusion is soon reached: the economy is located at the heart of all these critical events, and will definitely figure at the priority list of reforms after the stage of stability is reached in the MENA region.
Today, Arab countries are engaging in a transition towards free, tolerant and economically sustainable societies. The ongoing developments have caused fundamental transformations in political systems, and steps leading to democracy are already under implementation. Some say that the great Arab Spring is in blossom, generated by the great movements in the Arab streets. We hope stability is quickly reached to allow for prompt and healthy recoveries.
The twin challenges of democratic and economic transition in the region, call for the need of urgent reforms in the following areas:
- Political reforms that expand the base of participation and ensure the segregation of powers in the political arenas. Political processes should be put in place to support the democratic transition and foster governance reforms to ensure transparency and accountability within governments.
- Economic reforms that would be designed to put in place an economic framework for sustainable and inclusive growth. Such reform would accelerate the transition into productive economies, diversify sources of income, ensure a more equitable distribution of wealth, and improve public sector productivity, employment policies and job creation.
- Social reforms aiming at bridging the gap between the rich and the poor, empowering the middle class which is the conjunctive tissue of the society, and injecting the much needed investments in education, training, technology, social and health care systems. Our young generations ought to be able to live, work and prosper in their own communities, thus remedying to the issue of the Arab brain-drain.
- Legal reforms to contribute to the fight against corruption and the dissemination of the rule of justice.
If we attempt to identify a common goal for all these reforms and actions, we soon realize that stability is the name of the game. This might perhaps be the aim that we all aspire to achieve and ensure its sustainability. In this context, partnerships such as the EU_MENA Economic and Investment relations development, call for the focusing on two priority areas: support for the private sector and creating an investment-friendly environment. European and Mediterranean countries have always been bound by history and geography, and aspire to build a future based on universal values, such as peace, prosperity, and social understanding in the Mediterranean basin.
In our evolving and inter-connected world markets, the economic impact is not confined to the countries that are experiencing the greatest unrest. Increased instability across the MENA region had their negative effects on global growth rates, in many countries of the world.
Going back to the socio-political unrest in our Arab region, which constitutes a real threat to the stability of our economies and our banks, the latter are called upon to play a major role in supporting movements of economic reform, and regional integration to shape the future of the region. As the real engines of growth and development, and the financial arms of each country, Arab banks can play an active role in financing reconstruction and development projects in each operating country, in order to promote stability in the communities and societies. The latest events proved that our people have similar hopes, and aspire for the same human rights and values.
The current crisis also sheds the light on investment opportunities of Arab funds in the real economy. To this end, cross-border investments among Arab countries need to materialize, so does the promotion of inter-Arab trade, easy flow of capital, goods and services within the Arab countries, in view of ensuring a durable development, boosting growth and job creation, for the well-being of future generations.
We agree that the target is not easily reachable, but it is also not impossible.
As for investment opportunities, the Arab region enjoys a wealth of potentials, as well as human and natural resources. Moreover, our Arab banks currently manage assets that exceed US$ 3,000 billion at the end of 2010, a deposit base estimated at US$ 1,500 billion, and loans totaling US$ 1,100 billion. Consider the potentials!
The latest developments should open our eyes, bankers and economists, along with politicians and decision-makers in our countries, to re-evaluate our agendas for economic reforms, with a focus on the needs of people and their rightful demands for sustainable development. Such development should be taken from a social and humanitarian perspective, providing everyone in the community the right to lead a better life, get the right job, and live a life of dignity in an equitable and just society. Recent events revealed the depth of bitterness among our Arab nations, and the thirst of people for reforms and decent living.
Distinguished guests,
To Conclude:
We, in this meeting, which gathers major political and economic parties, assure that economics and politics go hand in hand towards insuring stability in any country. We are certainly at the right place, today, to call for strengthening and expanding the scope of Euro-Arab relations, given the fact that Italy has always been a country of excellent relations with its neighboring Mediterranean and Middle Eastern countries, and a major center for international cultural, economic and social interaction.
Today’s challenges are no doubt great, but the opportunities of tomorrow are even greater. The time is still opportune to face the difficulties and turn them into opportunities.
I hope the discussions that will take place over the coming two days in this Summit, will produce valuable proposals and recommendations, for the development of collaboration between Arab and European Banks.
Thank you for your attention.
