Jeddah-KSA. The President of the Islamic Development Bank (IDB), Dr Ahmad Mohamed Ali, has called for significant improvement in trade-related infrastructure among Arab countries in order to enhance trade and regional integration.
President Ahmad Ali made the call in Paris; the capital of France at the International Diplomatic Academy where he delivered a keynote speech entitled “Regional Integration in the Middle East and North Africa”.
“There are compelling historic and economic reasons for supporting economic integration in MENA—a region endowed with natural resources, and bonded by a common language, shared history and deep cultural ties”, said Dr Ahmad Ali. But to achieve proper economic integration in the region, he suggested that “of critical importance is the need to improve trade-related infrastructure and strengthen trade facilitation activities”.
Dr Ahmad Ali stated that trade among Arab countries is dominated by tourism saying that travel and transport together made up 78 percent of total service exports in 2008 among Arab countries, compared with India, where information and communications technology and finance are the leading export services, making up 55 percent of service exports. Dr Ahmad Ali then discussed the need for common market among Arab countries stating that, the Arab League has established the Greater Arab Free Trade
Area (GAFTA) with the aim of establishing a customs union by 2015 as a first step to establishing an Arab Common Market by 2020
The speech by the IDB president was rich in content by looking at historical factors from the rise of the Islamic empire, trade relations with Europe and colonialism to the current challenges the region is facing known as the Arab Spring. The chairman of the IDB Group stated that to address the key challenges the region is facing and facilitate trade relations and create employment for the youth, “strong political commitment, leadership and support from the international community will be
required”.
The President discussed the enormous potential available in the region which can help regional integration such as the development of the halal industry and Islamic finance.
President Ahmad Ali assured the Arab countries that IDB will stand shoulder to shoulder through these tough times, in fact between 2011-2013, said the President “IDB has disbursed funds of over US$2 billion to Arab Countries in Transition”.
During the visit, the President held discussions with Anne Paugam, CEO of French Development Agency in which they discussed cooperation in IDB’s Arab and African member countries. Dr Ahmad Ali equally held talks with Mathieu Peyraud, Adviser to the French President on G8-G20 and Global Affairs. Their discussion focused on the Deauville Partnership and the recent developments in Arab Countries in Transition as well as finding solution to the problems in the Sahel Region, especially Mali.