IIF's 9th Annual Middle Eastern and North African Bank Chief Executives Meetings conclude

Eighty two (82) members of this global association of financial institutions, that has more than 340 members from across 60 countries, were here to discuss the challenges and opportunities faced by the financial community across the MENA economies, in the light of current and emerging regional and global economic trends.

AbdulRazak Ali Issa, chief executive of BankMuscat, the host bank of the conference, stated at the conclusion of the private meeting that he was proud and delighted to host such an important meeting here at the Sultanate.

"We have had outstanding sessions during the past two days. The conference has given financial leaders from across the MENA region and beyond, a unique opportunity to reflect in-depth on global and regional economic issues and on a range of other matters that are of central importance to our business interests and aspirations. I believe that our deliberations here and our sharing of experiences will contribute to continued progress and stability in the financial systems of the MENA region."

"Banks today are no longer seen as institutions that are responsible for safeguarding public money alone, but as growth engines both in the economies in which they operate and as part of the larger regional and global economy. This is where global bodies like the IIF play a significant role in helping us better appreciate the risks and the challenges that lie ahead and assistance in bringing the global financial community closer together. We thank you for your continued support, guidance."

Charles Dallara the IIF managing director speaking at the press conference said that global economy presented financial institutions with as unusual combination of challenges and risks.

"While growth has been holding up relatively well, particularly in emerging market economies, there are considerable risks beneath the surface."

Mr. Dallara underlined the continued tightness of energy markets, concerns about a turnaround in the US housing market (which had been critical in supporting activity in the US economy up to now), and the risks stemming from the pronounced global current account imbalances.

"Those imbalances, reflected in part in the rising US deficit as well as the massive surplus in China's current account, pose a threat to international trading relationships upon which much of the recent global prosperity has been built," he said.

The risks of a deterioration in the global economy were heightened by the continued surge in private capital flows to emerging markets and the compression of interest spreads. Mr. Dallara said the conference had facilitated a rich and stimulating exchange on a range of issues of crucial interest to regional banks

Howard Handy IIF Counsellor and Director, spoke of the vibrancy of the economies of the Middle East region centering on the major oil producers.

"The GCC is experiencing an unprecedented boom in growth and activity which is accompanied by a surge in project spending focusing on infrastructure and the further development of energy sectors. Many other countries in the region are also benefiting from high energy prices and from increased linkages through buoyant capital flows, remittance, and tourism. The boom in asset prices which has propelled the market cap of the GCC stock markets above $1 trillion poses a special challenge for regulators and the monetary authorities."

HE Hamoud Sangour Al Zadjali, Executive President of the Central Bank of Oman and leaders of the banking industry in Oman were also present at the two-day long meetings. A full list of participants is attached.

The IIF's 10th Annual Meetings of Middle Eastern and North African Bank Chief Executives will held in Doha in February 2007, and will be hosted by Qatar National Bank.