Arab economies set to grow by 3.4% in 2023, says director general of AMF 

Growth in the region could rise to 4 percent by 2024. (Shutterstock)
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RIYADH: In a significant announcement at the Arab Banking Conference 2023 held in Riyadh, Abdulrahman Al-Hamidy, the director general and chairman of the Arab Monetary Fund, projected a growth rate of 3.4 percent for Arab economies this year.    

Speaking at the conference, held under the theme “Arab Economic Outlook in Light of International Changes,” he went on to forecast that growth could rise to 4 percent by 2024, indicating an optimistic outlook for the region.    

Highlighting the need to accelerate the shift towards digitalization, Al-Hamidy noted the Arab nations that quickly recovered from the COVID-19 fallout were those with higher levels of digital readiness.    

He also underscored the importance of intensifying efforts in financial and banking sector reforms across Arab countries.    

Furthermore, Al-Hamidy advocated for broader access to financing and financial services, a strengthening of domestic capital markets, and promoting regional financial integration to bolster economic stability and growth.    

Al-Hamidy pointed out that the Arab banking industry has fortified its resilience against financial turbulence and economic uncertainties.   

This robustness is attributed to heightened liquidity and solvency measures, stringent adherence to Basel III regulations, and compliance with International Financial Reporting Standard 9, he explained.  

Furthermore, the chairman noted that the supervisory mechanisms governing the sector have been upgraded to meet top-tier international standards.  

Expanding on the pivotal role of banks in Arab economies, Al-Hamidy revealed that the sector’s assets have swelled to an impressive $4.1 trillion. This figure represents a 124 percent of the collective gross domestic product of Arab nations, he stated.  

Despite global economic volatility, the Arab banking sector has demonstrated remarkable stability, largely due to strong fundamentals in capital reserves, asset quality, and overall profitability, Al-Hamidy explained.   

He went on to credit the proactive governance of Arab central banks in sustaining financial stability across the region.   

The chairman emphasized that the sector’s capital adequacy ratio stood at an above-average 17.4 percent by the close of 2022, exemplifying its high level of solvency.