Arab countries hope to influence G-20 agenda
An Istanbul economic forum highlighted Arab countries' aims to be included in the G-20 summit to be held in Turkey in November 2015.
The Union of Arab Banks and the Banks Association of Turkey hosted the fifth Arab-Turkish Economic Dialogue in Istanbul on March 5-6. The conference addressed the expectations of the Middle East and North Africa with regard to the G-20 summit that Turkey will host in November 2015. More than a hundred experts and researchers from the region, including a representative from Al-Monitor, participated in the conference and discussed, as an organizer described to Al-Monitor: How can we include this region on the agenda of the G-20 major economies?
Despite the Middle East and North Africa's geographic proximity, the region's countries do not comprise a unified area of economic exchange, thus presenting an obstacle, according to conference attendees. Only 10% of trade in Arab countries is conducted with other Arab countries, while 90% of trade is conducted outside the Middle East and North Africa.
An expert at the conference compared the region to a country like Belgium, which conducts 74% of its trade with neighboring countries. What, exactly, is hindering intra-Middle Eastern trade?
Many reasons are behind the lack of regional trade in the Middle East: the limited nature of domestic exports, an overwhelming focus on oil (hence the lack of economic diversity) and tense political relations between many of these countries. The same trade ratios apply to the Middle East and Turkey, with 11% of the Middle East and North Africa's trade being conducted with Turkey. Moreover, Arab countries account for only 12% of Turkey's tourist industry revenues, and Arab Bank assets in Turkey do not account for more than 7% of Turkey’s bank assets in general.
