Jordan Times
Thursday, May 19, 2005
Regional meeting
discusses economic issues in 'broader' MENA
By Rami Abdelrahman
AMMAN — The Jordanian and the US governments hosted a regional meeting with
Group of Eight (G -8) countries on Wednesday to address “key trade, investment
and finance issues in the broader Middle East and North Africa region (MENA).”
The meeting was sponsored by the US Export Import (Ex-Im) Bank, the US Overseas
Private Investment Corporation, the US Trade and Development Agency and the US
Department of State.
“The conference builds upon the commitments made by the leaders of the G-8 and
Broader Middle East and North Africa region to a partnership for progress and a
common future at the June 2004 Sea Island G-8 summit, and the subsequent
December 2004 forum for the future held in Morocco,” according to a statement by
the main sponsor.
Representatives of 27 states discussed during the first day how more financing
can be made available to support increased trade, investment and economic
development in the “broader” MENA region, which includes all Arab countries, as
well as neighbouring states like Afghanistan, Israel, Pakistan and Turkey.
“The president's [George Bush] vision is clear. Trade liberalisation and
increased economic integration will generate growth, create opportunity and
promote security throughout the Middle East,” said US Deputy Secretary of State
Robert Zoellick.
“This conference provides a unique opportunity for governments, companies and
financial institutions of the region to interact with major G-8 sources of
public and private finance and multinational companies... it will provide these
G-8 institutions with information about the type of financing most needed to
accelerate the pace of local and regional trade and investment,” said Ex-Im Bank
Chairman Philip Merrill.
The Ex-Im Bank's First Vice President and Vice Chair April Foley, said the main
sectors tackled are transportation, oil and gas, telecommunications, medical
equipment and electricity.
“There is huge potential in air traffic between countries of the broader MENA
region... increased air transportation between these countries means increased
business... the Ex-Im Bank is ready to help these countries to purchase US
planes, helicopters and airport equipment,” she said regarding transportation.
When it comes to oil and gas, most discussions focussed on Iraq.
“This area is all about oil and gas, the US has the equipment and technology
like second to no one,” she remarked.
Foley said US equipment will help Iraq and other countries, like it helped
Qatar, “maximise output in oil and gas.”
“We are optimistic about the oil potential in Iraq,” she added.
Regarding telecommunications, Foley said the Jordanian Radio-Trunking (Push To
Talk) services provider XPress, which signed last year a financing deal with Ex-Im
Bank, is seeking to expand in the region and that the bank is ready to support
these types of expansions that develop telecommunications infrastructure in the
region.
To attract, or keep, the best doctors in the region, Foley said the Ex-Im Bank
is working to develop medical infrastructure in the region. This happens through
purchasing US-made equipment that are known for their “higher quality.”
“Higher quality of equipment means higher quality of medical services,” she
remarked.
Concerning the rebuilding of Iraq, she indicated the banks are willing to help
Iraqi, Jordanian and Turkish subcontractors, among others from US-friendly
countries, find financing to participate in the rebuilding of the war-torn
neighbour.
Industry and Trade Minister Sharif Zu'bi urged the private sectors in the
“broader” MENA region to make use of the financial facilities provided by
agencies like the Ex-Im Bank, noting that the governments' duty is to provide
the adequate investment climate for these deals to take place.
The conference which was held as “complementary to the World Economic Forum
meetings,” discussed attracting foreign investment from private companies, banks
and other financial institutions into the region.
The meetings also discussed financing from public trade, investment and
development institutions, as well as current projects of international financial
institutions.
The afternoon sessions discussed the business priorities of the region, the
regional financial institutions' available products, and the role of insurance
and credit rating institutions.
In Thursday's sessions, the participants will discuss the reconstruction of Iraq
and Afghanistan, and then engage in workshops on agriculture,
telecommunications, oil and gas, water, transportation, information
technologies, intellectual property and competition and Islamic finance.