Financial experts discuss emerging markets' role in global growth

Dubai: The inaugural Menasa Forum, a high-level finance and business conference focused on the Middle East, North Africa and South Asia (Menasa) region hosted by the Dubai International Financial Centre (DIFC) opened Sunday with the participation of global leaders in banking, finance and economic policy making from across the world.

Under the theme of ‘Finance for the Next Decade of Growth', the Forum looks at issues such as regional capital market development, infrastructure finance opportunities, Islamic finance challenges, regional energy needs and the changing role of oil in an increasingly diversified global energy mix — all from an emerging markets perspective.

"The world is seeing a fundamental restructuring of the global economic system, with emerging markets playing an increasingly significant role. This shift is affecting economies worldwide, but especially those in the Middle East, North Africa and South Asia — a region at the centre of this transformation and one that is well positioned to take advantage of these changes," said Ahmad Humaid Al Tayer, Governor of the Dubai International Financial Centre.

In the Menasa region, the enormous accumulation of sovereign and private wealth, a young and fast-growing population that makes up 25 per cent of the world's total, and market liberalisation and regulatory reforms of a region with some $4.1 trillion (Dh15 trillion) in combined GDP, are providing the foundation for prospects of sustained growth across this region for decades.

The economic integration between the region's countries is underscored by its growing share in global trade total external trade in the Menasa region amounted to about $2.1 trillion in 2009. As a result, Menasa economies are increasingly significant from a global perspective expanding their share of world GDP, financial liquidity, infrastructure spending and investment.

The line up of speakers at today's forum include senior international bankers and policy makers from the region and financial experts. Michael Dorrell, Senior Managing Director and Founding Partner of Blackstone Infrastructure Partners, widely regarded as leading authority on infrastructure investments, will share his views on direct investment opportunities in the Menasa region and address private equity and infrastructure opportunities in a post-crisis world.

Nader Sultan, Senior Advisor and former Chief Executive Officer of Kuwait Petroleum Company will address the challenges of Menasa's already substantial energy needs and how demand is going to grow markedly over the next 20-30 years, Michael Cardona, Deputy Secretary General of ACP (Prudential Supervisory Authority) and former financial sector expert with the World Bank in Washington will provide insight into the balance sheet on global financial re-regulation as the world's financial authorities hammer out a new global order for how banks and markets work.

Rushdi Siddiqui, Global Head Islamic Finance, Thomson Reuters will address the challenges of developing Islamic capital markets and the likely trajectory of the sector going mainstream. The Menasa Forum will host a discussion between Sultan Nasser Al Suwaidi, Governor UAE Central Bank, Masoud Ahmad, Director, Middle East and Central Asia Department, International Monetary Fund, and Kito de Boer, Director, Middle East, McKinsey on challenges of building and sustaining Menasa partnerships to ensure continued growth in the region.

The forum has the support of leading financial institutions. The event is being held in association with Abraaj Capital and Deutsche Bank, and supported by Barclays, Goldman Sachs and Shuaa Capital. "We have long adopted the Menasa region as our core investment geography. It is a geography with shared history, culture, and trade and investment flows. That cohesion is only growing stronger and combined with the growth profile the region is witnessing, this makes it a very exciting investment destination," said Mustafa Abdul Wadood, CEO of Abraaj Capital's private equity business.

"We see the Menasa Forum as the leading platform to provide thought leadership, identify real business opportunities and inward and outward investment in the region," said Dr Nasser Saidi, Chief Economist of the DIFC Authority.