Secretary General of Union of Arab Banks reveals a Pan Arab Initiative to reduce repercussions of global financial crisis

Dr. Fouad Shaker said, in an interview with CNBC Arabiya that the problems of the current financial crisis have not ended, expecting it to affect the oil sector following the impact on the American automotive manufacturing industry.

The Secretary General of Union of Arab Banks, considered that the main factor affecting the Arab economies is the drop in oil prices, which also affect the non-oil Arab countries in addition to the tourism industry and export. Shaker emphasized that such economies would not tend to have negative growth, but will decline in growth rates, and this will not be less than 2% on the overall level.

Commenting on the situation of Arab banks, Shaker, said:

"Banks in the region will be affected by this crisis, but will do better than other banks in other parts of the world, stressing the need to increase the capital and the investments alongside having a new policy to detect early warning signs for the crisis,"

Shaker explained that there is a new vision being formulated focusing on the role of the central banks in the world and the role of the International Monetary Fund. All must be subject to the same treatment, and adhere to the same rules and regulations.

"The feeling of hope of getting out of the global financial crisis will begin by mid-2009, and by end of the year, some of the losses experienced by the real estate market will be compensated for," added Shaker.

Shaker said that the world was entering a new global financial system, based on three main themes; first transparency and disclosure, credit classifications that determine liability of credit rating and its limits, and uniting the monitoring methods.

The region's first and premier 24-hour live Arabic Business TV channel, CNBC Arabiya, recently re-launched to include 12 new programs. Along with a new programming schedule, the CNBC Arabiya re-launch reveals a brand new studio layout with more capacity for live links.