Tough economic challenges facing Middle East region
Posted: Wed Dec 07, 2011 10:10 amTough economic challenges facing Middle East region
KUWAIT: The region will face tough economic challenges in the wake of continuing political turmoil, remarked an economist. Speaking at the ‘Economist Road show’ held yesterday at the Salwa Sabah Hall in Salmiya, Simon Williams Chief Economist, HSBC Middle East, forecasted that continuing political transition in the Arab world, (even without being affected by the current global slowdown), would pose a threat to regional growth and stability.
He suggested that West-led economic downturn is unlikely to trigger a repeat of 2008 slump in the Middle East and North Africa. “Exactly one year ago, during the same road show, [which HSBC organizes annually], we never knew that unprecedented political shift could happen in the Arab world,” he told an audience comprising mostly bankers, economists and businessmen.
Now, we are witnessing political transition in Tunisia, Egypt and Libya and there are continuing struggles in some parts of the region. What lies ahead, we don’t know yet, but I am sure there is no turning back to the old system, and that everyone is anxious because many of us do not know what lies ahead,” he asserted.
Williams, who is currently based in Dubai, noted that non-oil producing countries are showing distress as a result of ‘Arab Spring’ upheaval, but the region’s super rich oil countries have been benefiting. According to Williams in order to see positive results, “It’s time for MENA region to stay away from the 1970′s style.
It is also time to introduce fiscal reforms such as paying taxes,” he implied. He also suggested introducing labor market reform, boosting education, training and breaking the divide between local and foreign workers. Williams encouraged a more transparent business environment so that governments can revitalize privatization programs.
Williams also recommends strengthening regional integration by mobilizing capital, goods and labor across borders. On capital market reform, he suggested deepening equity markets, widening FX credit markets and launching local currency debt market. “The 2008 recession derailed Middle East growth, but right now there is a strength in weakness and strength and in the strength too,” Williams noted. Williams who joined HSBC in 2006 and has more than 15 years experience as a Middle East analyst, leads HSBC mac
ro view of the Middle East and North Africa for equity, fixed income and FX clients across the globe.
Prior to his presentation, David Bloom, HSBC Global Head of FX Strategy also held a presentation entitled ‘Dollar Empire in the Balance. ‘ It detailed the prognosis for dollar supremacy. HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 46 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area.
http://bit.ly/soGLcv
KUWAIT: The region will face tough economic challenges in the wake of continuing political turmoil, remarked an economist. Speaking at the ‘Economist Road show’ held yesterday at the Salwa Sabah Hall in Salmiya, Simon Williams Chief Economist, HSBC Middle East, forecasted that continuing political transition in the Arab world, (even without being affected by the current global slowdown), would pose a threat to regional growth and stability.
He suggested that West-led economic downturn is unlikely to trigger a repeat of 2008 slump in the Middle East and North Africa. “Exactly one year ago, during the same road show, [which HSBC organizes annually], we never knew that unprecedented political shift could happen in the Arab world,” he told an audience comprising mostly bankers, economists and businessmen.
Now, we are witnessing political transition in Tunisia, Egypt and Libya and there are continuing struggles in some parts of the region. What lies ahead, we don’t know yet, but I am sure there is no turning back to the old system, and that everyone is anxious because many of us do not know what lies ahead,” he asserted.
Williams, who is currently based in Dubai, noted that non-oil producing countries are showing distress as a result of ‘Arab Spring’ upheaval, but the region’s super rich oil countries have been benefiting. According to Williams in order to see positive results, “It’s time for MENA region to stay away from the 1970′s style.
It is also time to introduce fiscal reforms such as paying taxes,” he implied. He also suggested introducing labor market reform, boosting education, training and breaking the divide between local and foreign workers. Williams encouraged a more transparent business environment so that governments can revitalize privatization programs.
Williams also recommends strengthening regional integration by mobilizing capital, goods and labor across borders. On capital market reform, he suggested deepening equity markets, widening FX credit markets and launching local currency debt market. “The 2008 recession derailed Middle East growth, but right now there is a strength in weakness and strength and in the strength too,” Williams noted. Williams who joined HSBC in 2006 and has more than 15 years experience as a Middle East analyst, leads HSBC mac
ro view of the Middle East and North Africa for equity, fixed income and FX clients across the globe.
Prior to his presentation, David Bloom, HSBC Global Head of FX Strategy also held a presentation entitled ‘Dollar Empire in the Balance. ‘ It detailed the prognosis for dollar supremacy. HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 46 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area.
http://bit.ly/soGLcv