Arab states economies continue to be mismanaged, report shows
Regional, Economics, 9/9/2002

A report for the World Economic Forum has called for making rapid economic reforms in order to open the economics of the Arab states before foreign investment after these economics had suffered long recession, although natural resources are available.

The report also said that there is a need to privatize the economies which are controlled by the public sector, to fight corruption and modernize the educational systems.

The report indicated that the Arab economies have suffered from growth reduction rate for the last 20 years, noting that the reason behind that are the governments rather than foreign factors.

The report was issued following a two- day meeting, sponsored by the World Economic Forum in Switzerland with the participation of Arab businessmen and politicians.

The report said that the Arab states has been for long depended on accumulating capitals as the only activator for growth and that globalization has left the Arab states behind.

It indicated that in 1981, the share of the Arab states of world exports was 10.7 % and this rate reached only 3.5% in 2001.

The report added that the composition of exports in the Arab region is based basically on oil exports as the case in the oil Gulf states like Qatar and Kuwait, adding that the work sector suffers from restrictions, which like investments in the Middle East, are effected by prevailing tension.

The report described private investment in the Arab states as insufficient and ineffective. It said that despite that, the banking sector is the most important in the financial sectors, however, it has not investing national assets in productive sectors.

The report indicated that with the exception of Egypt, Oman, Syria and Tunisia, production growth in the Arab states was negative.

The report added that in most of the Arab states, the role of the women is totally marginalized.

The report, however, covers Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia and the United Arab Emirates.

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