The Banking Executive Magazine - February 2023 Issue

ISSUE 170 FEBRUARY 2023 the BANKING EXECUTIVE 1 Editorial BANKING ON DEINDUSTRIALIZATION: A PATH TO PROSPERITY FOR ARAB BANKS The world is witnessing a shift in the economic landscape as the trend of Deindustrialization continues to spread globally. This trend, characterized by the decline of traditional manufacturing industries and the growth of the service sector, presents both challenges and opportunities for banks. One of the opportunities for banks in this trend is to provide financial services to businesses in the service sector. As these businesses grow, they will require more financial support, and banks can offer services such as lending, payment processing, and other financial solutions. Additionally, banks can help these businesses navigate the complexities of the new economic landscape by providing expertise on areas such as tax planning, financial management, and other critical business functions. To grasp this opportunity, banks must be proactive and adapt to the changing needs of their customers. They need to understand the unique challenges faced by businesses in the service sector and be prepared to offer tailored solutions that meet their specific needs. Moreover, banks should invest in digital solutions and technology to improve their services and reach a larger customer base. For Arab banks, this shift presents an excellent opportunity to grow their business and become a dominant player in the region. To achieve this, Arab banks should focus on developing innovative financial products and services that cater to the needs of businesses in the service sector. They should also work towards improving their digital infrastructure and embrace technology to reach a wider customer base. In conclusion, Deindustrialization presents an opportunity for banks to expand their reach and grow their business. By understanding the unique needs of businesses in the service sector and offering tailored solutions, banks can take advantage of this trend and position themselves for long-term success. Arab banks, in particular, should seize this opportunity to become a dominant player in the region and lead the way in providing financial solutions to support the growth of the service sector. Dr. Joseph Torbey, Chairman - World Union of Arab Bankers