"Investment Banking is crucial catalyst in enhancing economic efficiency": Leading Arab Economist

Addressing an audience of around 600 financial and political experts at the forum, Sheikha Hanadi was optimistic about the future of Arab economies consolidating their leadership in the global financial landscape. She highlighted the success of her home country, Qatar, as a trendsetter in capital generation, helping speed up the economic growth that the energy-rich nation already enjoys.

"Qatar has leapt ahead to becoming the nerve centre of the Arab economy's internationally recognized economic performance," said Sheikha Hanadi. "Against the backdrop of fast improving macro-economic conditions, enhanced regulatory environment facilitated by the formation of the Qatar Financial Centre and the continuous development of the Qatari capital markets, Qatar's financial industry is taking the country to greater milestones this decade."

She lauded the role of platforms such as the Arab Economic Forum that helps cite the potential of Arab economies to an international audience. She hoped that Amwal's partnership with the Qatar Business Foundation in hosting the prestigious forum this year will reiterate the need for a more dynamic investment environment and help induce capital inflow into the country.

"Business opportunities are endless and the capital market is reflective of it," she explained, "with 10 IPO's slated for FY 2006, numerous advisory opportunities in real estate and restructuring of family groups, the deal flow for investment banking is very robust. She added that the country's stock market capital that now represents nearly 300 per cent of Qatar's GDP (as of September 2005), has risen over five fold in the past three years and is poised for further growth."

Under the visionary leadership of its political heads, Qatar boasts of being one of the fastest growing economies in the world. Its GDP has doubled in five years, setting a new record in 2004 with an increase of 20 per cent over 2003 to reach US$ 28.5 billion.

Sheikha Hanadi added that forging ahead, Qatar aims to consolidate its leadership position through further capital injection. Nearly US$100 billion is earmarked for investment up to 2010 and GDP projected to grow at more than 10 per cent per annum. "Economic infrastructure is poised for increased efficiency, while liberalization of the economy and a greater role of private sector are expected to help attract foreign direct investments," she told the forum.

Similarly, on the asset management side, she said there is tremendous demand for investment products such as the IPO Funds, Islamic Private Equity, Real Estate securitization opportunities that offer diversification and cater to the varying risk-return profile of investors.