Multilateralisim is dangerous with absence of united Arab economic strategy, dollar reserves low

The federation of the Arab chambers of commerce, agriculture and industry has warned against the deterioration in the volume of Arab reserves of foreign currencies as a result of the expected recession in oil revenues and the decrease in the volume of Arab exports, the weakness of the flowing foreign investments to the Arab states besides the decrease in the revues of the services sectors especially tourism as a result of the September 11th attacks at the US.

The federation explained that the volume of Arab reserves of hard currency is estimated at USD 84 billion, representing 61.5% of the total volume of Arab imports. In a report, the federation also indicated the consequences of the pressures imposed on the Arab states in the context of globalization and liberalization of trade to open its markets and to open up to the world. A matter which threatens of adverse implications.

The report criticized certain Arab states' continued work to the principle of multi regional and international trade agreements in the absence of a united Arab strategy. It indicated the importance of the Greater free Arab trade area with the need to abide by its executive program in contributing to improving the conditions of the Arab private sector at the expense of foreign investments which should be eliminated to avoid producing commodities fall outside the exportation forces of Arab producers. The report also called for establishing an Arab bloc to withstand the European and American economy.