Alexandre Rocha*
alexandre.rocha@anba.com.br
São Paulo – The Lebanese Imad Shehab, aged 54, has great challenges ahead: expanding the importance of the private sector in the economies of the Arab world and helping governments in the region to share the gains of economic growth, generating jobs and reducing poverty. For such, he is going to count on the structure of the General Union of Chambers of Commerce, Industry and Agriculture for Arab Countries, the organization of which he became the secretary general early this year.
In an exclusive telephone interview to ANBA, from Beirut, where he lives, he said that during his term in office he plans to implement a five-year business plan with the objective of promoting a renewal in the institution that brings together Arab chambers from all around the world, including the Arab Brazilian Chamber of Commerce. "I really want the Union to be the representative of the private sector in the Arab world," he said.
To complete this task, Shehab, who has a PhD in economics, counts on an experience of decades as a banking executive, director of different sector organisations, consultant at international organisations and university professor. "The challenge today is to balance the distribution of gains with the economic boom in the region," he said, referring to the economic development of the Arab nations. "The future should be better," he added. Read below the main stretches of the interview:
ANBA – What are your perspectives with regard to the General Union?
Imad Shehab – When I became secretary general I presented a business plan to be implemented in five years. The objective is to make the organisation more visible, to promote a great renewal in activities and to grant it new guidelines for development. I really want the Union to be the representative of the private sector in the region, helping attract foreign investment and boosting investment and trade between the Arab nations. The institution should seek the economic and social development of the region, with participation of the private sector, and also greater insertion of the Arab world in the global scenery.
We have already started doing some things, like the launch of a monthly 120-page magazine to be the voice of the Arab private sector – previously there was a magazine published three or four times a year -, the publication of books by the Union and by specialists on economic and social matters and the reformulation of our website, which should become one of the best in the region, if not of the world, within the next three months.
Other actions we plan to promote are seminars, conferences and economic forums, a quarterly research bulletin, work together with governments to show the importance of the private sector, publication of an annual list of Arab investors and businessmen, another about foreign trade and, starting next year, the release of a guide about investment in the Arab nations, to help investors learn more about the investment environment in the region.
We want to develop a new image for the Union, to reposition it as a partner of governments in the region and to help the countries to integrate better in the future. We are going to present to the League of Arab States, during the meeting of Arab businessmen in January 2009, a report, a kind of "roadmap" on how to establish a common market by 2016. Before that, at the end of this year, we are going to organise, in Kuwait, another conference to prepare and discuss these statutes.
The Arab countries live distinctive economic and political realities. The nations of the Gulf, for example, are living an economic boom powered by oil, at the same time in which countries like Egypt suffer with the greater food prices and Lebanon has just moved into a period of political conflict. Is it possible to consolidate these differences?
Firstly the Arab world has been living a great economic boom boosted by petrodollars in recent years. In the economy of the region there is great liquidity, availability of funds of between US$ 1.5 trillion and US$ 2 trillion. This has allowed some Arab nations to post real growth of between 6% and 8% a year in recent years, with good improvement in the profile of the local market and in the investment environment, causing the entry of foreign direct investment (FDI). FDI inflow into some of the countries has grown between 5% and 6% a year, against a previous average of 2%. These are positive aspects of the oil boom.
Now there are challenges, some emergency ones. One is inflation, which is at 10% a year on average. We have social problems. In Lebanon, for example, there is unemployment and poverty. The challenge today is to balance the distribution of gains with the economic boom.
With regard to inflation, much comes to mind in the Euro Zone, with the appreciation of the European currency as against the dollar. Europe is a key partner for us, so we have imported inflation. But growth of the economy will have a positive impact in the generation of jobs and also in inflation. I believe that the future should be better.
And political questions in Lebanon are better. We will have a new president in coming days, then a new government(the interview was granted on Friday (23), before the Sunday election of general Michel Suleiman to the position) and a new parliament. This is going to be reflected in the economy and I believe that it will grow more in coming years. The current 2% to 3% growth rate should double if the political situation continues favourable. Tourism may also boost the economy with positive reflexes in industry and trade. We hope to receive tourists, especially from the Gulf, where the economy is growing more.
What do you plan for Arab Chambers abroad, especially for the Arab Brazilian Chamber of Commerce?
In February we started working to strengthen relations with joint chambers, with the organisation of a meeting in Athens (Greece), which had a very rich agenda. The conclusion we reached is that the Union should have a leadership position, should support chambers and strengthen economic relations, trade and investment. In June we should have a meeting between presidents and secretary generals of organisations, with the presence of the secretary general of the Arab League, Amr Mussa.
We also plan to organise trade missions – both ways -, economic forums and trade fairs, at our offices, and the publication of investment guides for Arab investors to have greater knowledge of other nations and vice versa.
In the case of Brazil, we plan to work together with the Arab Brazilian Chamber of Commerce to organise bilateral events and develop mutual relations. The period of economic boom that we are living and the historic relations that some Arab countries have with Brazil offer the country the possibility of benefiting more from this process.
The union is repositioning its partnership with Arab governments, providing suggestions of economic and political development for the private sector to have better positioning in the region. The private sector is already more open to international partnerships after the economic reforms adopted by several Arab countries.
A meeting of Arab businessmen had been scheduled to take place in Beirut in early June. Is it still going to take place?
We had scheduled a meeting between Arab businessmen and investors on June 4th and 5th, but due to the political situation in Lebanon we decided to cancel it. A new date is still being selected, but we hope that it take place at the end of June. It is a good platform for people from Brazil to come and meet Arab investors and to provide information about investment opportunities in Brazil, etc. It would be a good movement.
*Translated by Mark Ament
