22/02/2012 18:31 AST
Al Khalij Commercial Bank (Al Khaliji) QSC, in its continuous backing of industry-relevant conferences and events, provided support as the Official Sponsor of the 14th Arab Business Forum held in Qatar on 20-21 February 2012.
Held under the auspices of His Highness Sheikh Hamad bin Khalifa Al Thani, the Emir of the State of Qatar, the conference tackled challenges related to today's regional political and economic climate and studied challenges and investment opportunities amidst the current global economic reality. The event was held at the Doha Sheraton in West Bay.
"The region is facing some of the biggest challenges it has seen for more than half a century," said Robin McCall, Al Khaliji's Group Chief Executive Officer. "However, as much as the political climate may pose a general threat to regional economic growth, the new circumstances also pose interesting and potentially lucrative opportunities. This topic could not have been debated at a better time, and we are proud to be there as the conference's Official Sponsor."
The two-day conference hosted high-caliber speakers from all over the region, including Jordan, Lebanon, Kuwait, and Tunisia. The first day of the event covered Tunisia's post-revolution economic challenges, while Qatar's future growth prospects were also debated. The second day focused on intra-Arab investment opportunities, where Dr. Charbel Cordahi, Al Khaliji's Head of Investor Relations and Economist, spoke about the banking sector role in financing private sector projects and large scale investments.
"Recently, there have been concerns that Europeans banks are about to reduce their activities in the MENA region. This is, of course, concerning, as the reduction could have repercussions on the financing of projects and infrastructure in the region, as well as on trade and other economic and financial activities" Cordahi told the conference participants. "But this has more to do with the new regulations put forth by the European Union regulators - which require banks to increase their capital compared to their loans - than with the current developments in the MENA region".
Commenting on the share of non-Qatari banks in the financing of the Qatari economy, Cordahi said, "If we look at the distribution of loans to the domestic market, we see that 90% of the loans come from Qatari banks, pointing out to the fact that the private sector in Qatar relies on local banks for their financing needs, and not on Arab or foreign banks."
Cordahi said that domestic banks can provide the funds needed to the private sector, even with the 10% expected economic growth. But Cordahi warned that, "Even if the economy is able to secure funding, margins (the difference between interest rates on loans and deposits) may be exposed to external pressures, the costs of which will be carried on to private companies and borrowers."
Al Khaliji regularly supports and participates in forums and conferences regionally and globally as the Bank's executives are highly sought for their expertise and input.
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