Afghanistan needs more business

Dubai: The UAE has urged Muslim countries to engage in Afghanistan to boost its economy as part of international efforts to secure long-term peace and stability.

"Without economic transition and growth, it will be impossible to create the prosperous and secure future for Afghanistan that its people deserve," said Dr Anwar Mohammad Gargash, UAE Minister of State for Foreign Affairs.

He was speaking at the inaugural session of the Afghan International Investment Conference (AIIC) held in Dubai yesterday.

The conference, which was co-hosted by the UAE, was attended by ministers, diplomatic delegates, prominent businessmen from around the world and heads of some international organisations.

Priority

Improving the economic climate and attracting foreign investment in the private and public sectors were the primary objectives of the AIIC.

Gargash said the conference sought to attract public and private investment which will promote growth and employment and generate revenues for the Afghan government. He hoped the event would be the first of many, and would encourage economic exchange between Afghanistan and the international community.

"Let us be mindful that encouraging investment in Afghanistan is of long term benefit to not only Afghanistan's economy, but to the economic prosperity and security of all the countries of its wider neighbourhood and the world," he said.

The UAE, he added, was among the first Muslim countries to provide financial, technical and military support to Afghanistan and it would continue to work towards its economic prosperity.

Since 2002 the UAE has contributed Dh259 million in different development projects including irrigation, health, education, housing and infrastructure development projects providing the capital base for the economy to develop and prosper.

"While security dominates the agenda of the international community in its support for Afghanistan, economic stability and growth must also play a crucial part in enhancing Afghanistan's security," Gargash noted.

He added that countries can channel their international assistance to Afghanistan in ways that contribute towards economic prosperity.

He said the purpose of the AIIC is to help close the gap between investors and the Afghan government in understanding and bring businesses closer to the opportunities available in Afghanistan.

Partnership

"In the UAE, we feel that we are uniquely able to facilitate this partnership between Afghanistan and investor countries because it is something with which we are deeply familiar ourselves," he said.

He asserted that the economic progress can be combined with safeguarding traditional values.

"We believe that Afghanistan should not be denied a similar opportunity and the UAE will continue to work to enhance the constructive engagement for the global community in Afghanistan to ensure that it is not," he added.

Earlier, in his keynote speech at the Conference, Zalmai Rassoul, Afghanistan's Minister of Foreign Affairs, talked about challenges facing Afghanistan, steps it has taken to attract investments and how the economic growth is linked to the improving security in the country.

So far, he said, Afghanistan has received foreign investments exceeding $7 billion in different business sectors which are growing.

However, he acknowledged that security has been the major concern for investors.

Security

"Despite the high levels of return on investment and our efforts and measure to create enabling environment for investment, one of the major factors which has a significant impact on the level of investor interest in Afghanistan is concern over security," he said.

Though, he added, the security situation is not ideal, one should remember that these areas represent a small part of the country.

"Now, more than 200,000 Afghan National Army and National Police forces are fully capable of providing security across Afghanistan for private and public investments, projects and establishments," he said.

Growing confidence

Also, he said the gradual transfer of security responsibilities from international forces to the Afghan national security forces by 2014 is solid proof of growing confidence in Afghanistan's capability to guarantee the security of the population, work force, investments, investors and the safety and security of their assets and personnel.

He believes that economic growth and security are linked.

"We have noticed that greater wealth creation and prosperity has a direct impact on improving security in a country and within its region," he said.

"Investors who chose to invest in Afghanistan will not only be rewarded with significant returns on their investments, but hey will also play a vital role in the restoration of peace and security within the region."