The Banking Executive Magazine - August Issue 2022

Synergy, Cooperation and Strategic Alliance... The Pillars of Success 1. WHERE DO ARAB COUNTRIES STAND IN TODAY'S GLOBAL ECONOMY? Taken together, the 22 Arab economies contain two-thirds of the world's oil reserves. They also have a long entrepreneurial tradition and many highly-skilled people. These are among the solid reasons why the Arab countries have the potential for strong economic performance. Nev- ertheless, there are a number of fac- tors that weaken their ability to integrate with the global economy, the first of which is the slow and sluggish course of economic integra- tion & low Intra-trade and invest- ments. This makes the Arab region more vulnerable to external crises, at a time when it is already suffering from structural obstacles as a result of this weakness by itself. This is be- sides lagging in pace with the Fourth Industrial Revolution, except for few countries, which is imminent to curb rising poverty and unemployment rates & to become a region that can create more value. This is very im- portant, for it is the needed basis for sustained economic expansion. Without stronger, broad-based growth, how will Arab countries be able to create enough jobs which are likely to intensify? And without stronger growth, how will Arab countries have the resources to up- grade their economic infrastructure, address the problem of water scarcity, or meet the health, educa- tional, housing, and other needs of their growing populations? 2. HOW DO YOU ASSESS THE ARAB COUNTRIES PERFORMANCE IN DEALING WITH THE CURRENT GLOBAL ECONOMIC CHALLENGES? Responses to the present challenges are quite diverse. Certainly, it is en- couraging to see that some countries in the region have made consider- able headway in stabilizing, reform- ing, and opening up their economies. Yet, in 2022 all countries of the region are facing added pres- sures from climate change and rising prices, against a backdrop of uneven economic growth. Extreme heat, sus- tained drought, and the risks of water and food shortages could add to the burdens of multiple pressures. The biggest challenge now is to make substantial progress in keeping up with digital technologies. A recent UN survey shows that contrary to global trends, the Arab region is still based on traditional skills and has not succeeded in attracting and cre- ating future job skills, such as artifi- cial intelligence, cloud computing, block chains, machine learning and other skills. If this continues, the op- portunity for a successful structural transformation from traditional sec- tors may be missed, leading to deep- ening of structural unemployment. 3. HOW TECHNOLOGY & CLIMATE CHANGE ARE AFFECTING BUSINESS IN THE ARAB WORLD? The accelerated digital transforma- tion & existential threat of climate change have profound impacts. Now digital communication & sharing of information are critical for every business. Today's environment offers more ways than ever, and the tech- nology available makes it faster, eas- ier, and more efficient. AI is reshaping the world in business and ISSUE 164 AUGUST 2022 the BANKING EXECUTIVE 21