high time for investing Arab capital in the Arab states
Regional, Economics, 12/17/2002

Experts unanimously agree that the setting up of the Arab Free Trade Area (AFTA) is the only way for achieving Arab economic integration and realizing the aspired goals of the Arab common market.

Secretary-General of the Arab Economic Unity Council Ahmed Goweili referred to domestic and global challenges facing the Arab countries in this concern.

Population growth, unemployment low investment rate in the Arab region, which represents only 1 per cent of the world investments, comes among the major domestic challenges, while keeping abreast with the latest methods in technology constitutes a main global challenge.

Elaborating, Goweili pinpointed that the Arab Gross National Product (GNP) accounts for $ 700.3 billion of the world GNP, rating 2.2 per cent, whereas Arab exports represented 3.8 per cent of the world exports in the year 2000.

He noted that although oil prices' increase has positively affected the Arab countries' revenues, yet inter-Arab trade stood at 8.6 per cent of the Arab foreign trade.

On foreign challenges, Goweili referred to Arab association agreements with the European Union and the risks posed by trade exchange with Europe on the status of the national industries in the Arab world.

He also touched on the challenges generated by the world free trade agreements on Arab economies mainly in the field of intellectual property, financial deregulation of the world capital markets, and growth of multinational companies and their impact on global economy.

He cited other challenges facing the Arab economy in many important and vital sectors such as agricultural development, food security issues and future of oil and gas.

However, Goweili referred to positive changes witnessed by the Arab economy such as transformation of the Arab countries towards the market economy and deregulation of foreign trade.

On the same note, Khaled Abu Ismail, Chairman of the Federation of the Egyptian Chambers of Commerce said the Federation has conducted a full-dressed study on reactivating Arab economic cooperation to conform to expanding the role of the private sector in development and Arab economic integration.

Diversifying production bases and exports will help support inter-Arab trade and open the door before the private Arab investments, Abu Ismail noted.

It is high time that the unified agreement for investing Arab capital in the Arab states be developed, he said, urging the Arab nation to open new horizons for the future of Arab economic activities mainly in the fields of food production, developing water resources and oil and gas prospection.

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