Arab economic integration is required

Saudi Development Fund grants Yemen $ 225 million for development projects:  

Economic officials at the summit focused on strengthening financial and trade links between member states.

President Ali Abdullah Saleh confirmed that Arab economic integration would be deeply beneficial for all Arab states, and would provide a bulwark for Arab economies in times of global economic slowdown. 

The President’s comments were made during his meeting with participants in the 37th annual meeting of Arab Financial Institutions (AFI) which began in Sana’a last Wednesday.

Saleh welcomed delegations from Arab financial and planning institutions, as well as trade ministers and heads of sovereign wealth funds in Arab countries.  Arab countries have strong relations with the European Union, East Asian countries, the African continent and the United States, but it is better to have economic integration, joint interests and to exchange benefits between us, said Saleh. 

The President said that he considered the meeting in Sana'a a positive and important step towards Yemen’s economic development, and a chance to review the reforms achieved in the country so far. 

The President voiced his great appreciation of the Arab funds' contributions to Yemen's development process, wishing all success to the AFI's meetings

“Despite great efforts to activate the role of the Arab Free Trade Zone, levels of inter-member trade and investment are still humble in comparison with the huge variation in Arab nations’ resources and capabilities," said Prime Minister Ali Mujawar during the launch of the annual meeting.

Mujawar said that these meetings are excellent chances to evaluate the development processes in Arab countries in order to root pillars of Arab economic integration. 

The rate of Arab trade exchange does not exceed 10 percent of the total trade in the area, while Arab investments in other Arab countries have not increased more than 4 percent compared with total foreign international investments. 

Mujawar considered that convening these meetings in Yemen is an extension of regional and Arab support to Yemen and an expansion on the success of the Conference of Exploring Investment Opportunities held in Sana'a in April 2007 which has helped to increase foreign investments in Yemen, especially those from other Gulf countries.

He pointed out the positive improvements Yemen has achieved during the past three decades to realize considerable levels of growth in different development fields, highlighting the active contributions of Arab financial institutions to expand the economic and social development in the country. 

Saudi Finance Minister and head of the Saudi Development Fund, Ibrahim Abdul Aziz al-Asaf, chairman of the annual meetings of the Arab Financial Institutions, said that the financial institutions played an important role in terms of financing development projects in Arab countries.
 
Arab financial institutions funded development projects during 2007 to the amount of $2.26 billion. Since its establishment until the present time, Arab financial institutions have financed projects costing $32 billion.

Al-Asaf said that the Arab countries face several challenges: economic openness, international trade and an increase in competition as well as challenges of education and unemployment.

These economic challenges require the implementation of balanced economic policies and variation of income resources as well as encouraging investments and enhancing trade exchange between Arab countries. Arab financial institutions have an important role in terms of enhancing Arab integration, al-Asaf said. He also confirmed that they can play an essential role in food security projects.

Al-Asaf stated the keenness of his country to continue to support Arab financial institutions through its contributions of capital of these institutions to serve national goals.

Minister of Planning and International Cooperation Abdul-Karim al-Arhabi said that the meetings dealt with a number of issues concerning developing  the performance of these institutions and enhancing Arab economic integration in addition to the AFI’s support of Yemen's development.  The 37th annual meeting of the AFI was held with the participation of more than 300 Arab finance, planning and trade ministers, governors of central banks and accredited governors of Arab financial corporations.

On the sideline of the annual meeting, the Saudi Development Fund granted Yemen the amount of $225 million for three development projects, the head of the fund, Ibrahim Abdul Aziz al-Asaf said during the signing of the agreement with Minister al-Arhabi on Wednesday.

The Ministry of Planning and International Cooperation signed three agreements for supporting the Social Development Fund, public works and rural roads projects in Yemen  According to the agreements, the Saudi Development Fund will provide $100 million for the Yemen Social Development Fund, $75 million for financing the public works projects and $50 million for supporting rural road projects. 

Related Content

•  Government warns against un-official collection of money for Gaza
•  Al-Arabiya criticized and al-Jazeera praised over Gaza war coverage
•  Probe into the attackers of Egyptian consulate in Aden
•  Bani Dhabian release kidnapped child al-Odini
•  Yemeni and Palestinian women call for ending war on Gaza
•  Calling for Jihad,Thousands of Yemenis in governorates condemn Zionist massacres in Gaza Strip
•  Yemen calls for urgent Arab Summit to stand against Israeli atrocities
•  Endowment ends Yemenia monopoly over transport of pilgrims
•  Industry conference cites need for stock company to develop industrial areas
•  Al-Odini child still held three weeks after kidnapping