Vice President of Islamic Chamber of Commerce Calls for Economic Integration Among Islamic Countries

Engineer Ibrahim al-Arabi, President of the Federation of Egyptian Chambers and Vice President of the Islamic Chamber of Commerce, Industry, and Agriculture.
Engineer Ibrahim al-Arabi, President of the Federation of Egyptian Chambers and Vice President of the Islamic Chamber of Commerce, Industry, and Agriculture.
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Vice President of Islamic Chamber of Commerce Calls for Economic Integration Among Islamic Countries

Engineer Ibrahim al-Arabi, President of the Federation of Egyptian Chambers and Vice President of the Islamic Chamber of Commerce, Industry, and Agriculture.
Engineer Ibrahim al-Arabi, President of the Federation of Egyptian Chambers and Vice President of the Islamic Chamber of Commerce, Industry, and Agriculture.

Engineer Ibrahim al-Arabi, Vice President of the Islamic Chamber of Commerce, Industry, and Agriculture (ICCIA), called for economic integration among Islamic countries.

He told the ICCIA that this integration would allow countries to overcome challenges in the global economy and have access to the regional and global markets.

The ICCIA had convened for two days in Saudi Arabia.

Arabi, who is also president of the Federation of Egyptian Chambers, said the global economy has faced many challenges during the past few years and was affected by the negative economic impacts of the coronavirus pandemic.

Global markets are also currently witnessing a major downturn in supply chain and logistics, he remarked, noting that the “only way to overcome this critical phase is through cooperation and integration of the relative advantages of the Islamic countries”

“The integration of our multiple relative advantages for production and manufacturing to enter regional and global markets is the mean to develop our commodity and service exports,” he stressed.

He pointed to the possibility of benefiting from the free trade zones available to Egyptian industries that allow Egyptian products to enter the markets of all global economic blocs without customs duties or quotas.

He called on ICCIA member states to participate in the economic renaissance movement Cairo is currently experiencing.

Arabi affirmed his commitment to harness all the capacities of the Federation of Egyptian Chambers to provide training sessions in the Egyptian and Arab trade academies to support the development of the commercial and Islamic community.

The Federation of Egyptian Chambers organized a series of meetings for economic delegations from many Arab countries, including the delegations of the Jordanian Chambers of Commerce and Industry and a delegation from the Omani Chambers of Commerce and Industry, he told Asharq Al-Awsat in an inclusive interview over the phone.

During the meetings, the Federation presented all joint investment opportunities in the Suez Canal region and a group of joint projects to invest in African markets.

Participants discussed all opportunities for bilateral and multilateral economic cooperation in commercial and infrastructure projects in African markets.

They further tackled all opportunities for cooperation in value-added trade projects and the introduction of transformative materials on raw materials that are exported from African markets to the markets of major economic blocs, such as the European Union countries.

This step would help transform the industrial and free trade zones in Egypt into a manufacturing and exporting hub for global markets, Arabi added.



ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.