April 20, 2011
Private sector vital to job creation’
Adnan Ahmed Yousif addressing the ‘Arab Banking Conference 2011’ yesterday
A prominent Arab banker has called for a ‘solid framework’ for the private sector’s active participation in the regional economies, which he said is ‘vital’ to creating more jobs.
Addressing the opening session of the ‘Arab Banking Conference 2011’ yesterday, Union of Arab Banks (UAB) chairman Adnan Ahmed Yousif said the economic planning in the region must reflect the aspirations of its people.
The spotlight must be made on human development while carrying out new economic reforms.
“We have to have proper financial management in the Arab region. If systems of taxation require modifications, they must be carried out. We must also put an end to corruption is many countries in the MENA region,” Yousif said.
While economic reforms are required, the banking sector in the region must also attach top priority to transparency and issues of disclosure. Better methods of monitoring financing and governance are required to achieve economic stability in the Arab region, he said.
UAB has estimated that the combined balance sheet of the 490 Arab banks would grow 10% this year and exceed $3.5tn, Yousif said.
The combined net profit of the Arab banks is projected to grow 15% and reach $37bn. Of this, the Islamic banks may account for a combined net profit of $3.6bn this year, up 8% on 2010.
Yousif called for efforts at the Arab League level to discuss all financial issues relating to countries in the region. A new ‘Arab vision’ for economic reforms is required.
Yousif said the two-day conference would be an ideal platform for Arab financial institutions to resort to ‘open dialogue’. However, it is a fact the Arab banks are in a ‘much better shape’ when compared to their counterparts in the US or in Europe, he said.
Arab banks had not suffered to the extent the financial institutions did in these continents following the global economic crisis. This is because the Arab banks did not directly invest in the real estate or its derivatives in the US or Europe.
Arab banks had not suffered to the extent the financial institutions did in these continents following the global economic crisis. This is because the Arab banks did not directly invest in the real estate or its derivatives in the US or Europe.
The two-day conference focuses on “Arab Economic Reforms: A New Vision”.
Organised by UAB, the event is being held under the patronage of HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani.
Organised by UAB, the event is being held under the patronage of HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani.
QNB is the ‘lead sponsor’ of the ‘Arab Banking Conference 2011’, which is also supported by many major banks across the region.
