Arab economies will grow by four per cent next year, according to an AMF report.
Dr. Abdul Rahman bin Abdullah Al Humaidi, the Director-General and Chairman of the Board of the Arab Monetary Fund (AMF), has announced that the AMF’s projections indicate a forecasted growth rate of approximately 3.4 percent for Arab economies in 2023.
The AMF expects this figure increasing to 4 per cent in 2024.
Arab economic forecasts
Speaking at the opening of the Arab Banking Conference 2023 in Riyadh, Al Humaidi highlighted the need for Arab governments to accelerate their efforts to achieve digital transformation and shift towards a knowledge-based economy/
He also noted that Arab countries that quickly recovered from the COVID-19 fallout were those with higher levels of digital readiness.
He also underscored the importance of intensifying efforts to develop the financial and banking sector in Arab countries, increase access to financing and financial services, enhance domestic capital markets, and promote regional financial integration.
The Arab banking system has become more prepared to absorb and withstand financial and economic shocks and risks due to its improved liquidity and solvency levels, compliance with Basel III capital and liquidity requirements, and adherence to International Financial Reporting Standard (IFRS) 9.
Meanwhile, effective banking supervision capacities have been improved to be in line with the best international standards and practices.
Al Humaidi affirmed that the banking sector in Arab countries is their primary source of economic liquidity, with assets totalling some $4.1tn, equivalent to 124 per cent of the combined Gross Domestic Product (GDP) of Arab nations.
The sector has generally remained stable and capable of withstanding shocks due to its good levels of capital, asset quality, and profitability, reflecting the role of Arab central banks in maintaining financial stability, he added, noting that the Arab banking sector is distinguished by its high solvency, with the average capital adequacy ratio reaching 17.4 percent at the end of 2022.
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