Dubai’s Saidi Calls G-8 ‘Obsolete,’ Says Gulf Needs FSB Role

sorced: Bloomberg

Dubai International Financial Centre Chief Economist Nasser Saidi said the Group of Eight is an “obsolete” forum and called for a greater role for Gulf countries in global decision-making.
“The GCC should have strengthened representation on the Financial Stability Board,” Saidi said at a conference in London today. Gulf Cooperation Countries, which are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, should translate financial strength “into a more prominent role on the world stage,” he said.
The Group of 20 has overshadowed the G-8 in the revamp of global regulation following the worst financial crisis since the Great Depression. The FSB, comprised of central bankers, finance ministers and regulators from G-20 countries, has been elevated to a global supervisory role with more members from countries including China, India and Saudi Arabia.
At the London summit in April, the FSB gained new powers to outline global financial regulations and took on an oversight role, together with the International Monetary Fund, to look at market risks. G-8 leaders will meet in Italy in July.
Saidi today outlined a four-pronged plan to “redefine and redesign” the relationship between the GCC and London, including a louder voice in decision-making for Gulf countries.
He repeated calls for a development and restructuring bank for the Middle East, which he said would aid geo-political stability in the region.
Saidi also called for more sophisticated debt markets that can trade both conventional instruments and those that are compliant with Islamic law, which prohibits the use of interest payments. Sharia-compliant products should be integrated into the western financial system, he said.
To contact the reporters on this story: Caroline Binham in London at cbinham@bloomberg.net

Saudi launches sukuk, bond market on Saturday

Saudi Arabia said it would launch its new market for Islamic bonds, or sukuk, and bonds on Saturday, offering firms new sources of funding amid tight credit conditions.

Trading of bonds would run from in the mornings, the regulator said on the Gulf Arab state bourse's website.

"I believe this is a very important step forward since it will deepen the Saudi financial market," said Talaat Hafez, a member of the Saudi Economic Association.

Central bank governor Muhammad al-Jasser said in February commercial banks and firms seeking financing should tap more into the debt market with bond issues.

"The bonds and sukuk will create liquidity for financing needs, especially for what is known as the mega projects," said Hafez.

Saudi Arabia is currently undergoing huge development projects that will need $400 billion over the next five years but some foriegn companies have pulled out of projects struggling to secure funding.

source: Business

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