Arab economies projected to grow 3.4% in 2023, 4% in 2024, says AMF

Dr Abdul Rahman Bin Abdullah Al Humaidi, the Director-General and Chairman of the Board of the Arab Monetary Fund (AMF), has announced that the AMF’s projections indicate a forecasted growth rate of approximately 3.4 per cent for Arab economies in 2023, with expectations of this figure increasing to 4 per cent in 2024.

Speaking at the opening of the Arab Banking Conference 2023, which began on Monday in Riyadh, under the theme, “Arab Economic Outlook in Light of International Changes”, Al Humaidi highlighted the need for Arab governments to accelerate their efforts to achieve digital transformation and shift towards a knowledge-based economy, noting that Arab countries that quickly recovered from the COVID-19 fallout were those with higher levels of digital readiness.

He also underscored the importance of intensifying efforts to develop the financial and banking sector in Arab countries, increase access to financing and financial services, enhance domestic capital markets, and promote regional financial integration.

The Arab banking system has become more prepared to absorb and withstand financial and economic shocks and risks due to its improved liquidity and solvency levels, compliance with Basel III capital and liquidity requirements, and adherence to International Financial Reporting Standard (IFRS) 9, while effective banking supervision capacities have been improved to be in line with the best international standards and practices, he explained.

Al Humaidi affirmed that the banking sector in Arab countries is their primary source of economic liquidity, with assets totalling some $4.1 trillion, equivalent to 124 per cent of the combined Gross Domestic Product (GDP) of Arab nations.

The sector has generally remained stable and capable of withstanding shocks due to its good levels of capital, asset quality, and profitability, reflecting the role of Arab central banks in maintaining financial stability, he added, noting that the Arab banking sector is distinguished by its high solvency, with the average capital adequacy ratio reaching 17.4 percent at the end of 2022.

BRS 2023:  Dr. Patrick Lau, Deputy Executive Director of the Hong Kong Trade Development Council, said that the 8th edition of the Belt and Road Summit, which will be hosted in Hong Kong this September, will witness greater cooperation with the UAE and Middle Eastern countries, where several specialised sessions will be held for Middle Eastern countries with the aim of exploring cooperation and trade opportunities in various fields.

Lau made this statement to the Emirates News Agency (WAM) during the visit of a media delegation from the UAE and Saudi Arabia to Hong Kong.

The visit aims to highlight Hong Kong’s initiatives and incentives to attract international investments, especially from the Middle East, in preparation for the 8th Belt and Road Summit scheduled for 13th and 14th September at the Hong Kong Convention and Exhibition Centre, organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC).

Lau added that the Middle East sessions at the summit will contribute to enhancing cooperation by focusing on the possibility of working in the field of green solutions and new digital solutions, in addition to increasing cooperation in the fields of technology and logistics.

Dr. Lau invited investors from the Middle East to take advantage of the deal-making sessions at the summit to present the projects to investors and subscribers, as these projects can include urban transport and infrastructure projects, as well as renewable energy solutions projects, new digital solutions, technology, and other areas in which cooperation between the Middle East and Hong Kong countries, as well as Belt and Road countries, is possible.

In terms of green economic opportunities, Dr. Patrick said, “As the ‘strongest backbone’ for sustainable development in the region, Hong Kong can provide diversified financing channels, such as green bonds and loans, to facilitate international investors raising funds for various projects promoting green economy development, including developing energy saving and green buildings and renewable energy.”

He added, “Most BR countries are still in the process of creating carbon markets and digital economies. In the future, Mainland China and its enterprises will aim to achieve low-carbon development, make full use of the opportunity to build the nation’s carbon market and use carbon trading cooperation to promote the construction of the domestic carbon market, low-carbon development and climate change in the Belt and Road region, enriching the meaning of Green Belt and Road. China’s carbon trading volume is estimated to exceed RMB 100 billion by 2030”.

Lau said that Hong Kong is a strategic centre for establishing business and investment, as Hong Kong is a bridge that provides cooperative opportunities between the countries of the Middle East, mainland China and the rest of Asia.

He explained that the countries of the Middle East can benefit from the Southeast Asian market through Hong Kong, as this cooperation will contribute to the growth of more businesses and ensure their sustainability through the incentives and opportunities provided by Hong Kong to expand its business to the rest of Asia and the world.

WAM