Arab Inc. told to get ready to face WTO challenges
19 Feb 2006MUSCAT- An international seminar on World Trade Organisation (WTO) challenges and opportunities here yesterday urged Arab Inc. to get ready to face the challenges of WTO and globalization.
The one-day seminar has also mooted national and regional coalitions in the services industry. In developing countries, services industry represents 80 per cent of productivity.
“An Arab regional -industry board is coming into existence on March 19 2006, which will provide updates on WTO negotiations to Arab governments,” sources revealed.
Yahya bin Said Al Jabri, executive president of the (CMA), said Omani public limited companies should be prepared to face the challenges of globalization and reap benefits.
Listed companies must equip themselves to compete with international firms,especially in an era of WTO. This, according to Al Jabri, will not only trigger corporate growth but also expand economic activity.
The stock market regulator organized the seminar in association with Talal Abu-Ghazaleh Group, a leading Arab organization for professional services worldwide.
“We should not be hostile to meeting the challenges arising from external competition,” Mohammed bin Nasser Al Khasaibi, secretary-general at the Ministry of National Economy told Times Business on the sidelines of the seminar.
“The world trading system is not a blessing but a fact of life. We should look towards internal, inter-Arab and south-to-south trade,” Talal Abu-Ghazaleh, chairman of Abu-Ghazaleh Group, and a senior Arab economist told Times. “At present, inter-Arab trade is less than 10 per cent of foreign trade. One fourth of the Arab population on a dollar a day, and half of Arabs -150 million people — live on $2-5,a day. Arab exports, including oil, represent only four per cent ($400 billion) of global exports.
Total Arab GNP (22 countries) stands less than one per cent of the world GNP — $700 billion out of $36 trillion,” Abu-Ghazaleh said.
He said total Arab imports are about quarter of a trillion, representing only three per cent of global imports. Inter-Arab trade needs to be expanded.
“In 2005, Arab population is expected to touch half trillion, and that can and should constitute a great market and a great economic bloc.
“More importantly, 50 percent of the Arab population is under 20 years. It can and should mean greater productivity, unlike certain international reports claim,” Abu-Ghazaleh added.
The allowable global level of tariffs on agriculture remains at more than 60 per cent this year. This is under a trade system that claims to eliminate tariffs. The global average for bound tariffs on manufactured goods is 30 per cent .
Emphasizing that the government has been working with the private sector, Al Jabri said: “Many international players are eyeing the vast Arab and Omani market potential, and we should not be reluctant to the challenges.”
He called upon Arab and Omani companies to enhance reforms in their practices to better meet the challenges that they may face from trade and economic liberalization.
On its part, the CMA is taking necessary steps towards strengthening and fine-tuning relevant norms so that any possible hindrances on growth can be reduced, Al Jabri said.
He said the CMA is reviewing all its norms to enable it to face the challenges. He also said that the CMA has been working towards a project on reviewing all relevant market
norms.
The government, according to sources, is also in the process of enacting a comprehensive Commercial Companies Law. The law will enable the corporate sector to be more competitive and keep pace with the economic changes taking place in the region.
Oman’s entry into the WTO will eventually promote reforms in all trades and there will be dramatic changes in institutional functioning — both private and public. Omani firms indeed will meet fierce competition from foreign firms in the future.
The seminar, Al Jabri, hoped that must have helped companies take appropriate measures to face the challenges of trade liberalization and explore various opportunities that the WTO and globalization offer. The one-day seminar also examined issues relevant to the future of public joint stock companies in the Arab world — in the light of WTO agreements.
Follow us
