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Arab-British Chamber of Commerce hosts Strategic Forum on Banking and Finance

The Arab-British Chamber of Commerce’s Strategic Forum, an international business conference that brought together leading business players and decision makers in the UK and the Gulf, successfully took place in central London on 10 January

Organised by the A-BCC in co-operation with business events organiser Lace Live, the conference took as its theme “Bilateral Trade and Investment Opportunities in the Banking & Finance Sector in the Gulf”. The day-long proceedings were chaired by Sir Roger Tomkys, the A-BCC chairman.
Held against the backdrop of turbulence in the global banking sector in the aftermath of the US sub-prime crisis, whose impact continues to reverberate worldwide, the Strategic Forum, proved to be well timed and attracted significant attention. Organisers said a total of 198 people attended the event, including several Arab ambassadors in London and senior figures from the UK and Gulf financial sectors.  
Opening the conference, Ms Afnan Al-Shuaiby, Secretary General & Chief Executive of the Arab-British Chamber of Commerce, welcomed a distinguished line up of speakers, guests and delegates.
“Despite the uncertainty of recent events, the Gulf economies continue to demonstrate considerable dynamism providing much cause for optimism, as you will no doubt hear from our speakers,” Ms Al-Shuaiby told the conference.

(From left to right) Dr. Afnan Al-Shuaiby, HE Dr. Abdulrahman Al-Tuwaijri and Alderman David Lewis

“As a result of huge budget surpluses derived from high oil revenues the countries of the Gulf have been embarking on hugely ambitious investment strategies in terms of major regional infrastructure projects, while increased surpluses have permitted them to adopt more astute investing overseas.
“The UK property market, for example, has recently been a prime beneficiary reaping of Gulf investment from both public and private corporations with some high profile cases making news headlines of late,” she continued. 
“The Strategic Forum provides an important opportunity for leading financiers in the City of London to engage with counterparts from the Gulf to discuss the key issues in investment, banking and finance. We also hope that it will give a platform to explore means by which London as a global financial centre with its considerable expertise can offer some of its advisory services to the rapidly expanding financial sector in the Gulf.

(From left to right) Dr. Afnan Al-Shuaiby, He Dr. Abdulrahman Al-Tuwaijri, Sir Alan Munro, Baroness Symmons and Alderman David Lewis

“As you will note from our agenda, the topics to be addressed during the day will include key important issues such as means of financing of the Gulf’s infrastructure programmes, the impact of the liberalisation of capital and financial markets, the role of private equity and training for finance personnel. All provide real opportunities for closer cooperation,” the A-BCC Secretary General concluded.
Keynote addresses were delivered by H E Dr Abdulrahman A Al-Tuwaijri, Chairman of the Capital Markets Authority in Saudi Arabia, Alderman David Lewis, The Rt Hon Lord Mayor of the City of London and HE Rasheed Al Maraj, Governor of the Central Bank of Bahrain.
In his keynote address, H E Abdulrahman al-Tuwaijri, described the timing of the Strategic forum as “particularly opportune” given the great deal of activities currently seen in the region’s banking and financial sector.

Focusing on recent economic reforms in Saudi Arabia, al-Tuwaijri said that the capital market was a key part of this intensive and comprehensive programme.
He said that the capital market in the Kingdom, following the setting up of the Capital Markets Authority in 2004, was “now beginning to bear fruit”.
“Saudi Arabia already has by far the largest capital market in the Arab world. Whether measured by market capitalisation, the value of shares traded, or average company size, our market outstrips all others in the region. And it continues to grow.
“In 2007 there were 26 IPOs on the Saudi capital market. Last April the sale of a 45 percent stake in Saudi Kayan Petrochemical raised SR6.75bn ($1.8bn), the largest on our market so far. The insurance company sector was particularly active during 2007, accounting for 14 of the total number of IPOs.
In addition,” the CMA chairman continued, “the number of new licenses granted to firms to operate in the capital market has grown strongly. Forty two new licenses were issued in 2007, including to major international firms like Deutsche Bank, JP Morgan and Merrill Lynch. This has almost doubled the number of firms with licenses compared to the position at the end of 2006.”
H E Abdulrahman Al-Tuwaijri finally informed the conference that Saudi Arabia had now almost completed the framework of rules and regulations governing its capital market, with the issuing of new regulations on corporate governance, mergers and acquisitions, real estate investment trusts and investment funds.  Nevertheless, he said, the regulatory framework remains under constant review with further refinement planned in years ahead.

In another keynote address, HE Rasheed Al Maraj, Central Bank of Bahrain, spoke of the ongoing need for economic liberalisation in the Gulf and explained why it was still a challenge to maintain the momentum even in the booming times like today.
This was because of the continuing underlying aims to improve job prospects, efficiency and diversity.
He highlighted the key factors that had enabled Bahrain to achieve its successful growth over recent years, which have included high global oil revenues, but also the adoption of flexible policies, with more room given to the private sector to operate and the emergence of highly qualified professionals working in the local economy.
The Lord Mayor of London, Alderman David Lewis, began his address by praising the “excellent work carried out by the Arab-British Chamber of Commerce for over 30 years” and congratulated the A-BCC Secretary General on her recent appointment and the fine start to her term of office.      
Alderman Lewis described the long relationship between the UK, and the city of London in particular, with the Arab world and stated that it was enduring and successful because it was founded on friendship and trust.

(From left to right) HE Dr. Abdulrahman Al-Tuwaijri and HRH Prince Mohammed Bin Nawaf Bin Abdulaziz Al Saud

Opportunities for extending that relationship had now emerged. The Gulf states were enjoying an oil windfall and experiencing average growth of some 7 percent over the past few years, but they were investing more prudently than in the past. The city was active in assisting the Gulf states to mobilise funds to support investment in the many exciting infrastructure plans currently being carried out, The Lord Mayor said.
In addition, Gulf investors were looking to locations like London in order to make investment. 
Other speakers and those participating in panel discussions included Michael Ainley, Financial Services Authority, Cyrus Ardalan, Barclays Capital, Michael Brigden, National Commercial Bank, Fadi Elkhoury, Samba Bank London, Robert Gray, HSBC Bank plc, Sir Thomas Harris, Standard Chartered Bank plc, Ismail Hussain, Bahrain Institute of Banking & Finance, George Kardouche, Arab Bankers’ Association and Brooks Newmark MP, Opposition Treasury spokesman.
Topics addressed during the day’s proceedings included the financing of the Gulf’s infrastructure programmes, liberalisation of capital and financial markets, the role of private equity and training for finance personnel.
The Forum, held at 2 Savoy Place, off The Strand in London, was an opportunity for leading business people involved in bilateral trade between the UK and the Gulf to discuss the impact of recent developments in the banking sector, in particular the implications for the Gulf markets and how it may alter prospects for building closer relations with the UK. 
The proceedings of the conference were widely reported in the media.

HE Rasheed Al Maraj