LONDON: Arab economies need to break down barriers and start to work together if they are to stand any chance of creating the millions of jobs they need to grow, the World Economic Forum in Davos heard.
Regional economies are estimated to have grown by just 1 percent for 2019 as a weaker oil price, geopolitical threats and the impact of global trade wars have hurt output.
But a panel of Middle East business leaders and ministers called for more efforts to break down barriers and slash red tape in order to create the sort of economic growth needed for meaningful job creation.
“We forget sometimes employment is a result of economic growth — you can’t create jobs without economic growth,” said Alain Bejjani, the CEO of Majid Al Futtaim Holding, the Dubai-based retail conglomerate that operates malls across the Middle East.
He said that most global growth was creates through regional trading blocs but that this model had not yet worked successfully in the Middle East.
“If you look at the ASEAN region as an example — it has 56 percent of its trade happening within the region. I think you’ll be surprised when I tell you that only 16 percent of the trade in the MENAP region is within the region. If you take oil out it is less than 5 percent. So in reality this region doesn’t work together. It works with the world but not with each other.”
Bureaucratic processes have also stymied growth according to Majid Jafar, the CEO of UAE-based Crescent Petroleum.
“Registering a company can take more than a year in some countries,” he said. “So how can we make that quicker? Look at what is standing in the way and how can we improve it.”
The Middle East and Central Asia is expected to record 2.8 percent growth in 2020, the IMF said on Monday. That was slightly lower than its October outlook and reflecting the latest move by the OPEC+ group of oil producers to extend supply cuts. It expects the region to pick up speed in 2021 with growth of 3.2 percent.
Arab states work with the world but not with each other, Davos hears
https://arab.news/z9med
Arab states work with the world but not with each other, Davos hears
- Majid Al Futtaim CEO Alain Bejjani: I think you’ll be surprised when I tell you that only 16 percent of the trade in the MENAP region is within the region
- Alain Bejjani: We forget sometimes employment is a result of economic growth — you can’t create jobs without economic growth
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
