09-February-2025
Khartoum
+18.19C
moderate rain
humidity: 100%
wind: 2km/h NNW
H 24 • L 24
24C
Wed

Yemeni Economist:- (**)The Arab capitals invested outside the Arab countries exceed 4 trillion dollars

By: Mohammed Osman

Khartoum,Sudan (Sudanow) The economy is a major concern that poses a source of insomnia to governments, even individuals, in the Arab countries, yet examination of the Arab resources reveals a striking contrast between the huge Arab capital and what is flowing into the Arab countries, compared with a frenzied scramble, by both governments and individuals of this Arab capital for investment and depositing in foreign banks, while the Arab food gap grows wider, estimated by some people at more than an annual 50 billion dollars.


In an attempt to dissect the Arab economic and financial situation and the prospects for implementation of President Omar Al-Bashir’s initiative for achieving the Sudanese and Arab dream of interpreting the motto of the Sudan an Arab food basket into a reality rather than wishful songs, SUDANOW Magazine conducted a protracted interview with the Yemeni banker during his presence in Khartoum for participation in an Arab economic event. The dialogue ran as follows:


SUDANOW: At the outset, in the name of the Sudanese people and the Sudanese media, you are welcome in the Sudan. Could you kindly introduce yourself to the readers?

Banker: Thanks for the hospitality. My name is Shamsan Mohamed Babikir, a lecturer of financial and banking sciences in the Banking Studies Institute in the Yemeni capital Sana’a. I am also deputy director of the performance quality and evaluation department in the Central Bank of Yemen plus a member of the Bank’s trade union.

sudanow.info.sd: The issue of attracting the Arab capital to the Arab countries for implementation of development and services investment projects is considered an important issue which is heavily relied upon for pushing the national economies forward and resolving relevant problems at the country level and at the Arab cooperation level. In your capacity as an expert in this field, what is your viewpoint on this situation?

Shamsan: I do agree with you that Arab investments, with such a huge and growing volume, can certainly contribute to development of the Arab economies and their exploitation could make the Arabs dispense with other foreign capitals and investments, bearing in mind that the Arab capital invested outside the Arab countries are estimated at more than four trillion dollars.

sudanow.info.sd: I beg your pardon, but do you have studies revealing those figures? What are the sources and dates of those studies?

Shamsan: Yes, in late last year, I prepared a study which I presented to a meeting of central council of the Arab Union of the personnel of the banks and financial, commercial and insurance enterprises that was hosted by Khartoum during 16-18 December 2013.

sudanow.info.sd: The Riyadh development summit of 2013has endorsed President Omar al-Bashir’s initiative for achieving an Arab food security. How do you view the prospects of its success and the possibility of attracting the Arab investment into the Sudan?
Shamsan: The Sudan is a promising Arab country with tremendous resources and capability of contributing to achieving the Arab food security, considering its vast fertile and cultivable lands and the experience of its farmers. Dr. Al-Mahi Khalafallah presented to a recent Arab trade unions conference a paper on the new investment act and the privileges to be granted to the investors, a matter which encourages investment in Sudan.

sudanow.info.sd: What was the title of the research or study which you have prepared for the meetings of the Central Council of the Arab bankers and personnel of the financial, commercial and insurance personnel union hosted by Khartoum?

Shamsan :The study was titled “The Role of the Arab Banking Sector in Funding the Promising Productive Sectors”.


sudanow.info.sd: What were the main topics of the study and answers you have proposed to the questions you have raised?

Shamsan :The study attempted to answer several questions that included ways for bringing the Arab investments abroad back to Arab countries, the volume of the foreign reserves of the Arab banks, whether government or private sector that operates abroad, the directions of those investments, the reasons for migration of the Arab capitals abroad, the impact of this migration on the local Arab economy, the factors that prevent a return of those Arab capitals to the Arab countries, the conditions for such a return and other issues relevant to the study.

sudanow.info.sd: How much is your estimation for the Arab food gap?

Shamsan: This gap was estimated on counting groups of the main commodities in the Arab world during 2010-2012 on the basis of the difference between the production and what is available for consumption and the gap is counted by the volume of the imports of the Arab countries. The data and information of the Arab Authority for Agricultural Investment and Development (AAAID) indicate a relative stability during 2010 and 2011 when the value of the gap was 34.4 billion dollars and 34.3 billion dollars respectively, due to stepped-up efforts and introduction of encouraging policies in individual Arab countries, while the gap in 2012 was 35 billion dollars.

sudanow.info.sd: What was the source of this study?

Shamsan :This data was issued by AAAID in its annual book on Arab agricultural statistics, volume 130 of 2012. Moreover, there are indications that the gap will get wider in 2013 due to the population growth.

sudanow.info.sd: What is the volume of the Arab capitals in the foreign banks?

Shamsan :The Arab capitals in the foreign banks are estimated at one trillion and 414 billion dollars belonging to Arab central banks and one trillion and 114.6 billion dollars belonging to others, they are deposited only in central banks in the United States and Europe.

sudanow.info.sd: What about the Arab private sector banks?

Shamsan :Those banks have 299.08 billion dollars abroad. Moreover, according to Dr. Mohamed Saad Hajrasy in a paper he presented to the recent conference of the Arab bankers and personnel of the financial, commercial and insurance enterprises, on the role of the Arab capitals in the socio-economic development, there are Arabian Gulf sovereignty funds which have 1.5 trillion dollars invested outside the Arab countries and, adding the 1.414 trillion, the Arab bank capitals are estimated at 2.9 trillion dollars.


sudanow.info.sd: Will give examples of Arab countries which can contribute to the Arab food?

Shamsan: There are opportunities for such a contribution in the Sudan, Syria and Yemen for solving the Arab food shortage.

sudanow.info.sd: Based on the study which you have conducted, what are the main recommendations which can help reactivate the role of the banks in rejuvenating the Arab productive sectors for bridging the food gap?

Shamsan: The role of the banks in funding the promising productive sectors can be reactivated by establishing micro-finance projects through business installations, for instance, in rural areas close to the farms and the farmers for rapid provision of funds for the farmer to purchase his needs or purchase those needs on his behalf against the Islamic murabahah system. This can also be carried out through partnership with the investors in the big agricultural projects or by purchasing agricultural equipment the Islamic murabahah, istisqa’a (watering), istizra’a (joint cultivation) or Salem systems. At present the latter, salem, is the commonest agricultural funding system in a number of Arab countries, including the Sudan beside the istisqa’a and istizra’a under which the bank funds the agricultural operation and takes a limited share of the crop or waters the crop, as the majority of the farmers suffers from the watering problem, and divides the crop with the farmers after the harvest. The bank also supports the youths in executing small-scale projects whether for agricultural or animal production.

sudanow.info.sd: How about providing support for fishermen?

Shamsan :There are numerous seas, rivers and coasts which are rich in fish and which can be exploited. There are many ideas that can be implemented for surmounting the pretexts of inadequate capabilities or political circumstances by purchasing fishing boats and hiring them against joint liability guarantees for one or up to five fishermen. Or such boats can be purchased and distributed to the fishermen, under the auspices of a fishermen society, to be hired for one or two years after which the boat will be a property of the fisherman, a situation which will enable him to scale up his catch production for the benefit of the concerned country and for contribution to providing food for the Arabs in general.

sudanow.info.sd: What about funding the owners of the fishing boats?

Shamsan: In the case of fishermen owning boats and need funding for the purchase equipment and other requirements such fuels or nets, micro-finance units can be established in the fishing centers to purchase those needs and sell them to the fishermen who will repay the price in soft installments.

sudanow.info.sd: To what extent can the bankers’ trade union play a role in implementation of those ideas?

Shamsan: The banks’ trade unions must move for facilitating procedures for reactivating the role of the banks in support of the promising productive sectors and fighting unemployment through the micro-finance units in the Arab countries in addition to supporting and encouraging investments and focusing on employment of the youths.

sudanow.info.sd: What outstanding that may face the returning Arab capitals from abroad for investment in the Arab countries?

Shamsan: There are several risks for the returning the Arab capitals, the most important of which is economic structure and legislation which are dominated by the government public sectors and this is not attractive for the Arab capitals to return home. Secondly, there is no financial system of multiple options and for this reason, the International Monetary Fund, the International Settlements Bank and other institutions responsible for the banking system recommend that the capitals should be kept in investment funds with a foreign component of a foreign currency basket and should be kept in organizations of a high-level crediting classification.

sudanow.info.sd: (Interruption) is this the case in any Arab country such as Saudi Arabia, UAE or any other country?

Shamsan: There is Arab bank of these specifications.

sudanow.info.sd: But we are partners in foreign banks of these specifications, aren’t we?

Shamsan: Yes. We are partners and shareholders in foreign banks based abroad but until now there is Arab bank accredited for keeping foreign currency reserves in it.

sudanow.info.sd: Are there other threat against a home-return of the Arab capitals?

Shamsan: The other threats are the poor productive energy for repayment of debts and the rate of unemployment which exceeds 15%.

sudanow.info.sd: (Interruption) don’t you think the productive power in the Arab countries is promising?

Shamsan :Yes, it is promising, but there is not proper exploitation of the resources for upgrading the productive energy. For this reason, The Arab capitals are deposited abroad rather than within the Arab countries, something which we, as Arab economists, seek to correct and call upon others to join in this effort so that credits can be provided to the Arab individuals and sectors for improving their incomes and raising the productivity in the Arab countries.

sudanow.info.sd: Is there any role for the Arab educational system in overcoming the obstacles and threats to the return of the Arab capitals?

SHAMSAN: The Arab educational system constitutes one of the threats to

Sudanow is the longest serving English speaking magazine in the Sudan. It is chartarized by its high quality professional journalism, focusing on political, social, economic, cultural and sport developments in the Sudan. Sudanow provides in depth analysis of these developments by academia, highly ...

More

Recent tweets

FOLLOW Us On Facebook

Contact Us

Address: Sudan News Agency (SUNA) Building, Jamhoria Street, Khartoum - Sudan

Mobile:+249 909220011 / +249 912307547

Email: info@sudanow-magazine.net, asbr30@gmail.com