Dr Nasser Saidi, Chief Economist at the Dubai International Financial Centre and Executive Director of the Hawkamah-Institute for Corporate Governance, said that setting up a MENA bank dedicated to reconstruction and development of the region.
He pointed out that the United States, Asia, Africa and Europe all have their own financial organisations for reconstruction and development. But MENA is the only region that doesn’t have a bank for the cause.
“The GCC states have the opportunity to become engine of growth in the Arab world in the aftermath of the Arab Spring,” he said.
He was speaking at a forum hosted by the Capital Club Dubai to discuss the need for policy reforms, institutional change and extensive investment in the region in the wake of the Arab Spring.
“The GCC has big incentive to do it,” said Dr Saidi, who is a member of the IMF’s Regional Advisory Group for MENA and Co-Chair of the Organisation of Economic Cooperation and Development’s MENA Corporate Governance Working Group.
He said that the idea goes back to Egypt of 1953. But Egypt couldn’t become the engine of growth. That opportunity has come to the GCC countries now.
“The GCC member states should take more active role, economically. They should widen the net and include countries like Egypt, Yemen, Jordan and Morocco into the GCC fold,” he said.
He suggested that the GCC countries should prepare a roadmap for countries like Egypt and Yemen and present it their governments while making it clear that they would have to follow the roadmap if they want to join the group.
Dr Saidi, who was also named among the 50 most influential Arabs in the World by The Middle East magazine for the third time, this year, suggested privatisation and more Public-Private Partnership to develop infrastructure in the countries torn by war and violence.
Stressing upon the need of setting up the bank, Dr Saidi said, “This is the time when we need an institution like this, because the transition is going to take years and we have to address all the challenges and vulnerabilities.”
He said that the oil exporting countries in the GCC may be the main stake holders in the bank. “We the Arab countries have to do it on our own. We cannot wait for people from other parts of the world to come and resolve our problems. This is the time that the Arab countries play role in transformation, build their own institutions and bring the change.
“Although it seems very challenging at the moment, we need to realise that we are very rich, and have the natural resources. The potential is also certainly there,” he added.
In the wake of the looming fear of global sovereign debt crisis, Dr Saidi said that the increasing stature of Asian countries like China and India are the saving grace for the MENA region.
He said that the UAE has benefitted from the recent political turmoil in the Arab region because of its political stability. The UAE remains an important hub for India and China to enter the GCC countries and the MENA region.
The eminent economist said that Dubai recovered from the financial crisis much faster because of its strong links to India and China. He pointed out that Dubai’s multinational companies like Dubai World, Emirates and Dubal are doing well in the emerging markets and tourist flow from Asia has increased substantially.
He suggested the GCC countries to be benefitted from the growth of India and China because they are growing much faster. The growth rate of the emerging markets is 2-3 times faster than the advanced economies of the world.
“The trade policies as well as economic and investment policies should be reoriented towards Asia, because that is where the growth is coming from. If you strengthen your links to the Asian giants, you will be less vulnerable than you were 5-10 years ago to what’s happening in the Europe and the United States,” he added.