Transcript Agenda - Sharjah Chamber Of Commerce & Industry

Na’el Raja AL-Kabariti
Chairman
March 19,20th 2014
Agenda
Introduction
Illuminating Experiences
Current State of Intra-Islamic Trade
Facts and Figures
The Importance of Activating the Trade Preference
System
The Importance of Blocs and Main Proposals
Conclusion
2
Introduction
• With
the
emergence
of
international economic blocs, it
has become vital for OIC
member states to consider
establishing an economic bloc
that
would
serve
many
objectives, perhaps the most
important of which is to help
facilitate intra-Islamic trade and
eliminate customs barriers and
restrictions as a key step toward
creating a common Islamic
market and achieve economic
integration which is a strategic
objective to deal with regional
and international blocs.
• We need to coordinate efforts,
achieve economic integration, push
toward
common
economic
development and reduce useless
completions between Islamic states.
Here, we stress the fact that our goal
is not to impose protection or
restrictions; as the time for such
measures has long gone, but rather
to become a group of real
competitors to international and
regional blocs; particularly as
experience has shown that individual
economies cannot achieve any
significant success or impact on
overall international trade and global
economy.
3
Illuminating Experiences
We have achieved tangible progress and success in
establishing Islamic banks which managed to make
their way despite all initial challenges, and we must
take the next step toward establishing an
international trade system from the correct Islamic
perspective. The success of Islamic banking is
vulnerable to setbacks; unless we all move forward
toward establishing common Islamic system and
concept for international trade; moving in parallel
routes and translating into a large union that would
be recognized and dealt with on its own terms.
When the Common European Market was
established in mid-fifties of the last century, it only
had six members and has now become the
European Union which comprises most European
countries, including former socialist ones.
No issues for O2C
4
The Reality of Intra – Islamic Trade
1
We can no longer work
separately and compete
with one another while
economic blocs around
us are increasing in
number, size, influence
and power. Our world
does not respect the
weak and therefore, we
need to take the first
step.
We
have
accumulated
enough
knowledge
and
experience to reduce
the time needed to
establish
our
new
economic
bloc
compared to other
blocs, including the EU.
2
:
International markets, and
foreign trade in particular,
have come a long way in
terms of development and
progress in regulation,
introduction
of
new
legislations,
combating
money laundering and
eliminating
customs
barriers and restrictions on
the flow of goods and
services through blocs and
countries; which facilitated
import,
export
and
financing
processes.
Indeed,
many
Islamic
countries produce high
quality competitive goods
and services which can
replace goods and services
imported from other blocs,
particularly European ones.
3
We all recognize and
appreciate the efforts
exerted
by
OIC
which, despite the substantial
challenges facing the Islamic
world, strives to increase trade,
enhance economic integration,
support development projects
among its various member
states in industry; agriculture;
service and trade; and develop
SMEs; seeking to achieve food
security, fight poverty and
create real jobs for young
people in order to address
widespread unemployment in
its member states.
Facts and Figures
The contribution of OIC
member states to gross
world product (GWP) and
international trade is in
not compatible with the
economic and financial
capabilities of these
countries which produce
some (39%) of the
world’s oil and have more
than (70%) of world oil
reserves and some (40%)
of gas reserves.
The contribution of the
(57) member states of
OIC (which account for
nearly 22% of the world
population) to GWP in
2012 was (USD 904)
trillion; i.e. nearly (11%)
of GWP, while their share
in total international
trade during the same
year was nearly (12.5%).
The share of intra-Islamic
trade in total exports of
Islamic countries was no
more than (18%) at best,
whereas the share of the
EU; Japan and USA in the
foreign trade of Islamic
countries was between
(40 – 94%) for exports
and (40 – 80%) for
imports.
6
The Importance of Activating the Trade
Preference System
It will be an important tool to
promote intra-Islamic trade and
will encourage the private sector
in Islamic countries to play a key
role in enhancing intra-Islamic
trade, achieving the desired
development
Improving the
competitiveness of Islamic
economy in the international
arena.
Support the financing of
small and agricultural
projects; food security;
vocational training and
social development.
Addressing global
challenges
7
The Importance of Blocs and Main Proposals
Adapting to economic
globalization
and
responding
to
its
challenges in terms of
trade, productivity and
technology, as well as
increased international
competition.
Reducing the reliance
on other countries
(outside the bloc) in
foreign trade and
therefore reducing
economic dependence
on the outside world.
With this bloc, Islamic
countries will be able to
influence the decisions of
WTO and other financial
and economic institutions
such as IMF and WB; as
they often make decision
which are primarily aimed
at protecting their own
interests without any
regard to the socioeconomic conditions of
Islamic countries.
8
The Importance of Blocs and Main Proposals
Chambers of commerce
within this group should
identify present and
anticipated weaknesses
and drawbacks, determine
how to overcome them
and develop agreed upon
timelines in order to
provide member states
with enough time to adapt
and prepare their
legislative situations to lay
a foundation for a
cooperation that would
produce the desired
success.
Chambers of commerce
need to develop effective
mechanisms for publicprivate partnerships by
enhancing communication
and exchange of
information between
trade policy makers,
relevant organizations and
private sector partners;
which is the real drive
behind sustainable
economic growth and
prosperity in member
states.
Chambers of commerce in
Islamic countries need to
discuss the economic
conditions of OIC member
states, study development
prospects, explore new
fields for investment and
increase
intra-Islamic
trade.
This
would
contribute to the efforts
exerted to bring investors
and decision makers in
Islamic countries together
in order to achieve the
objectives of the OIC,
support member states in
need and develop services
to
help
promote
comprehensive
development.
9
 Achieving sustainable development would improve economic
performance, help strengthen the economies of Islamic countries and
enable them to compete with the economic interests of developed
industrial countries which would like our countries to remain nothing
more than markets for their products and source for energy and raw
material; particularly as Islamic countries have the necessary resources
and huge potential; both in terms of area and population.
 Political will plays a key role in convergence between OIC
member states. Decision makers need to believe in the
significance and benefit of Islamic economic integration and
put overall Islamic interest before the interests of individual
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states.