Arab investment map drawn up
Regional, Economics, 6/10/2003

The Arab economic Unity Council (AEUC) welcomed a proposal forwarded by Egypt on setting up an Arab fund for exchange, investment and development.

Winding up its 77th session held in Cairo last week and chaired by Yomeni Minister of Industry and trade Khaled Sheikh, the council underlined that the AEUC General Secretariat and Egypt will be entrusted with drawing up a detailed study on the fund's objectives and mechanisms which will be referred to the council in its coming session, due to convene in December in Cairo.

The fund will help in upping the rate of inter-Arab trade to 20 per cent of the volume of Arab trade with the external world over the coming five years.

The Egyptian proposal aims at replacing foreign imports with Arab products, said state minister for foreign affaire. Fayza Abul Naga who represented Egypt's delegation to the meetings.

The AEUC meeting, held under its Secretary General Ahmed Goweili, designated January the 1st, 2005 as a date to start full exemption from all customs duties, taxes as well as no customs restrictions on commodities exchanged between the Arab countries.

Moreover, the council paid tribute to the achievements so far accomplished regarding the Arab investment map that includes the available investment opportunities in various economic activities in the Arab countries.

The map, to be placed on the Internet, includes some 4,000 investment ventures with initial feasibility Studies, aiming at activating joint investments in the region.

On the other hand, the council stressed that current circumstances necessitate the presence of an Arab economic bloc, including all Arab countries and represented in establishing the Common Arab Market.

Aggregate volume of the Arab imports from various world markets hit $ 154 billion, of which only $ 1s billion are in value of imports from Arab states, according to Goweili, who noted that the rate of arab inter- trade to the global one dropped from 13 per cent in 1980 to 3 per cent last year, a matter which asserted the retreating Arab trade activities.

Total volume of Arab economies constitutes only 2 per cent of the global economy, while the volume of the Arab Gross Domestic Product (GDP) amounts to $ 700 billion, compared to $ 32 trillion in value of the global GDP, Goweili said, pointing out that the Arab economy still depend on oil and tourism sectors, which are always affected by wars and political problems.

Moreover, the AEUC Secretary stressed the importance of combating unemployment in the Arab region, considered the main challenge facing the Arab states.

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