Confidence of Arab Society Overwhelms Critics
15 Dec 1983The difficulties in presenting a united Arab front, even in the accountancy world, were made clear last week when seven of the nine Council members of the newly-constituted Arab Society of Certified Accountants (see The Accountant, 13 October) met in London to reveal their plans for the future.
Already, the Society, established at a founders’ meeting two months ago, has come under suspicion of political and personal aggrandisement. The trouble, it seems, stems from the long-standing rivalry. And there are three main characters —— Saba, the Beirut-based firm of accountants which used to be the largest in the Middle East, Ernst and Whitney, one of the nine large international accountancy firms with a strong foothold in the Middle East, and Talal Abu-Ghazaleh, the flamboyantself-made tycoon who is the first president of the Arab Society.
Mr. Abu-Ghazaleh spent much of his early working career with Saba and in 1972 became chairman elect. However differences led to his resignation and, taking a large number of clients, he set up his own firm. The business was highly successful and has now expanded into Talal Abu-Ghazaleh International with interests in accourntancy, banking, finance and consultancy.
Meanwhile, the Saba fortunes have declined, not least because of the war in Beirut. And along with them the aspirations of the Middle East Society of Accountants, also based in Beirut, whose presidency has been dominated by the Saba family for some 20 years.
The Arab states do not currently have a set of accounting standards arid techniques of their own despite similar legal systems. The incursion of the big nine has given them a legacy of UK and US guidelines but these need to be adapted to suit the Arab commercial world. For a long time, many leading Arab accountants have wanted an institution which would be recognised internationally and which would be able to set Arab standards, objectives which the Middle East Society has been unable to achieve. The dedication to such an end is proved by the attendance, at their own expense, of 27 accountants at the Society founders’ meeting in October.
At that meeting, articles of association were drawn up and the Council elected. Since then, three Ernst and Whitney partners have sent letters withdrawing their support, despite having signed the original charter. Apparently they do not approve of the society’s headquarters being set up in London, where it will be based for the next five years. The more cynical have said however that the true reason is because none of them were elected to the executive.
Not unnaturally, because he was elected to the Council and as its first president, Mr. Abu —Ghazaleh, with his background of success and his longstanding feud with Saba, has had allegations of personal advertisingand even revenge flung at him. He strongly denies such charges. As far as his battle with Saba is concerned, it is a thing of the past. To him and to the other council members what is important is a Pan-Arabic institution which is accepted by the international professional community. And they are dedicated, as Mr Abu-Ghazaleh pointed out: ‘The Council members have taken the time and trouble to come all the way from different locations in the Arab world. But special recognition must be given to one member, Mr. Antoine Muttar, who comes from Beirut and who, in order to be here, had to take a ship to Cyprus — because the airport is closed
— and fly from there.’
With the support of representatives from Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen, the Council’s mood is optimistic. And a much hoped for feather in their cap will be the appointment, under negotiation at present of an ex-British Ambassador to the Middle East as their Secretary.
Already, the Society, established at a founders’ meeting two months ago, has come under suspicion of political and personal aggrandisement. The trouble, it seems, stems from the long-standing rivalry. And there are three main characters —— Saba, the Beirut-based firm of accountants which used to be the largest in the Middle East, Ernst and Whitney, one of the nine large international accountancy firms with a strong foothold in the Middle East, and Talal Abu-Ghazaleh, the flamboyantself-made tycoon who is the first president of the Arab Society.
Mr. Abu-Ghazaleh spent much of his early working career with Saba and in 1972 became chairman elect. However differences led to his resignation and, taking a large number of clients, he set up his own firm. The business was highly successful and has now expanded into Talal Abu-Ghazaleh International with interests in accourntancy, banking, finance and consultancy.
Meanwhile, the Saba fortunes have declined, not least because of the war in Beirut. And along with them the aspirations of the Middle East Society of Accountants, also based in Beirut, whose presidency has been dominated by the Saba family for some 20 years.
The Arab states do not currently have a set of accounting standards arid techniques of their own despite similar legal systems. The incursion of the big nine has given them a legacy of UK and US guidelines but these need to be adapted to suit the Arab commercial world. For a long time, many leading Arab accountants have wanted an institution which would be recognised internationally and which would be able to set Arab standards, objectives which the Middle East Society has been unable to achieve. The dedication to such an end is proved by the attendance, at their own expense, of 27 accountants at the Society founders’ meeting in October.
At that meeting, articles of association were drawn up and the Council elected. Since then, three Ernst and Whitney partners have sent letters withdrawing their support, despite having signed the original charter. Apparently they do not approve of the society’s headquarters being set up in London, where it will be based for the next five years. The more cynical have said however that the true reason is because none of them were elected to the executive.
Not unnaturally, because he was elected to the Council and as its first president, Mr. Abu —Ghazaleh, with his background of success and his longstanding feud with Saba, has had allegations of personal advertisingand even revenge flung at him. He strongly denies such charges. As far as his battle with Saba is concerned, it is a thing of the past. To him and to the other council members what is important is a Pan-Arabic institution which is accepted by the international professional community. And they are dedicated, as Mr Abu-Ghazaleh pointed out: ‘The Council members have taken the time and trouble to come all the way from different locations in the Arab world. But special recognition must be given to one member, Mr. Antoine Muttar, who comes from Beirut and who, in order to be here, had to take a ship to Cyprus — because the airport is closed
— and fly from there.’
With the support of representatives from Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen, the Council’s mood is optimistic. And a much hoped for feather in their cap will be the appointment, under negotiation at present of an ex-British Ambassador to the Middle East as their Secretary.
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