International Banking and Finance Conference calls for increasing capital and mergers to face global competition

The participants confirmed the need for banks and financial institutions in the Arab Gulf countries to invest in the process of liberalization of financial markets and to comply with the World Trade Organization directions, as well as the criteria and the decisions of the Basel (1) and Basel (2) regarding the standard of capital adequacy.

In addition, they pointed out the need of a strong boost in the area of project financing of international Arab financial institutions that work in Arab Gulf countries. They also called for guaranteeing investment risks and providing all types of banking services and technical aid to investors.

The conference also recommended the participating companies from the Arab World - many of them which operate in Arab Gulf countries - to play an active role in realizing Arab economic cooperation and also to encourage partnership between the public sector and private sector in various forms, to realize gains from financing and administration.

The conference emphasized the importance of the arbitration in general, particularly in the area of international commercial contracts, with the need to abide by the General Agreement on Trade in Services (GATS), in addition to the need of making use of arbitration centers that facilitate disputes.

It also called for utilising the services of the Dubai International Arbitration Centre, which is one of the most important centers of arbitration in the region. The conference stressed the need for making the stock exchanges in the Gulf countries as transparent as possible, and the need for greater awareness on how to deal with stock exchanges, plus how to deal with the stock exchange through the Internet, while alerting users to the risks that they might be exposed to.

The conference pointed out the need of the Arab banks to increase their capital as well as speed up the trend to integration in order to face strong international competition in the area of banking operations, since they are weak compared with banks in the advanced countries. The conference also stressed the importance of strengthening banking superintendence, by either the Central Bank or any other independent controlling authority through the development of legislation. It also sought to train personnel for banking superintendence.

The session included important topics regarding globalization of financial markets. It recognized the need for setting rules by specified authorities or by authorized parties rather than depending on the market to set the rules, which could lead to inappropriate obstacles and misleading information.

Dr. Ali Al Hashimi, partner in a global law firm and legal consultant in Dubai said that strengthening financial markets could be done by providing a comprehensive overview of the market in the Emirates and setting in motion procedures that would complement local financial regulations with those of the world market. He furthermore added that the infrastructure of the local market, which includes the DIFC and the important role it plays in fiscal legislation, closely follows global legislation.

The workshops that followed the conference included Financing through the Internet and Stock Exchange and Services via the Internet.

Speakers who spoke on these topics included: Francisco Victor Bouissou from MBSC Advogados in Brasilia, Brazil, Silvestre Tandeau de Marsac from Sur & Associés in Paris, France and Mr. Mohammed Rashed Al-Suwaidi, Managing Partner in Al Suwaidi & Company Advocates & Legal Consultants in Dubai, United Arab Emirates. All of them agreed on the importance of taking precautions while using the Internet, especially when it comes to financing and using the stock exchange via the Net.

In conclusion, Dr. Hussam Al Talhouni, President of Dubai International Arbitration Center, confirmed the importance of the conference by highlighting legal issues that should be taken up in the banking sector that sees many global challenges with the opening up of markets.

He thanked the attendees and participants in the conference for the valuable information they provided. He said their contribution would help financial companies in the Gulf area to stimulate further growth.