(MENAFN– The Peninsula)

Deepak John
|
The Peninsula

Doha: Qatar’s banking sector has high ranking among the Arab countries in regards to capital adequacy ratio that has reached 19.2 percent and reflects the strength of the sector and its ability to absorb shocks, Director General and Chairman of the Board of Directors of the Arab Monetary Fund H E Dr. Fahad bin Mohammed Al Turki said, yesterday

Addressing the Arab Banking conference 2024 Al Turki praised the performance of Qatari banking sector.“In the banking sector industry Qatar represents 11.9 percent of the assets of the Arab banking sector achieving third rank among the Arab countries,” he said.

Al Turki explained that the banking institutions must innovate and provide financial products that support investment in sustainable infrastructure, clean energy and projects that aim to achieve social and environmental goals.

Banks and financial and banking institutions must also integrate sustainability standards into their lending and investment operations.

The contribution of the banks is critical through the development of the bank legislation and sustainable development.

Regarding financial solvency of the Arab banking sector the average capital reached 17.4 percent at the end of the previous year which is a higher percentage of that targeted international rate which is 10.5 percent.

Delivering the official opening address, Mohamed Mahmoud El Etreby, Chairman, Union of Arab Banks said, the efforts aiming at achieving sustainable goals or SDG’s of 2030 are more important than ever.

The Arab countries will be able to achieve all those goals individually and as a group if they were able to overcome all the development challenges and double their efforts in order to achieve the sustainable development.

“We need to transition to sustainable development models, including in order to tackle issues such as the shortage and scarcity of water and also the desertification. We need to exert efforts in order to develop new methods to achieve sustainable developments and green economy.

“We need to reinforce and strengthen our cooperation between all the countries on the regional and international level that is likely to impact positively the ability to attract more FDI’s and also to enhance the international partnership in order to be able to harness the sustainable development,” he added.

One of the factors that could play a role in Arab countries is the FDI, which means that the requirements of sustainable development. El Etreby said,“We have been able also to achieve and make some progress in the green economy. Some Arab countries in this regard issued green bonds between 2015 and 2020, amounting in total to $14bn of these bonds and 84 percent of which were considered as sustainable and green bonds.

El Etreby added“We in the financial sector, can play an important and active role in order to achieve the long term goals and vision for our economies and growth because the financial sector can help to achieve the sustainable development goals.

The Arab financial sector has witnessed development in the recent years, including the fintech and many other technological tools, but also the modernisation of the regulatory frameworks.

Also, the green bonds have been developed in the Arab world in order to achieve the SDG’s. A lot of Arab banks indeed have started adopting the ESG terms or metrics in their different investments and lending operations which enhance its role in the sustainable development, he noted.

Dr. Rola Dashti, Under-Secretary-General and Executive Secretary – (ESCWA) also delivered the keynote address.

The conference also saw two panel sessions entitled ‘Sustainable Development Requirements and the Financing Gap in the Arab Region’ and ‘The Role of Financial Markets, Institutions, and Instruments in Financing Development’ .

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