CPC backs moves to boost Arab investments

Updated 16 January 2013

CPC backs moves to boost Arab investments

An Arab Private Sector Forum was held recently in preparation for the upcoming third Arab Summit for Economic and Social Development.
It was tilted “Active Participation of the Private Sector in Economic Development and Arab Economy Integration Initiatives.”
The forum discussed, among others, various projects and investment initiatives in the Arab countries.
It was held in Riyadh under the auspices of Foreign Minister Prince Saud Al-Faisal.
Faysal Al-Aquil, director of business development and corporate social responsibility of construction products Holding Company (CPC) — platinum sponsor of the forum – underscored the company’s sponsorship, saying that its great importance is reflected on the caliber of participants as well as officials who took part in the forum.
“The Construction Products Company is very keen to support initiatives that support the joint Arab work for the development of leading businesses, as well as offering more investment opportunities that lead to the advancement of Arab communities and reduce unemployment,” Alaquil added.
The forum also explored the initiatives which will be launched by a group of Arab investment companies and economic organizations in various banking and financial markets, and small and mid-sized projects, job creation, development of business entrepreneurship, information technology and communication, industrial and agricultural development, trade and social housing.
The forum was organized by Arab League, the General Union of Chambers of Commerce, Industry and Agriculture for Arab Countries and the Council for Saudi Chambers of Commerce and Industry.

Financial crime leads to billions of lost business in Middle East, survey finds

Updated 52 min 10 sec ago

Financial crime leads to billions of lost business in Middle East, survey finds

  • Some 45 percent of MENA respondents in Thomson Reuters victims of fraud, corruption and bribery
  • 77 percent of MENA respondents deliberately avoided customers, suppliers, countries or industries viewed as most exposed to financial crime.

LONDON: Middle Eastern companies are losing billions of dollars in business opportunities because of fears about financial crime, according to a Thomson Reuters survey published on Thursday.

Concern about the possibility of severe financial and reputational damage due to regulatory breaches leads foreign investors and firms to shun companies and entire regions where they see “heightened risk.”

In the Middle East and North Africa (MENA), 77 percent of survey respondents said that they deliberately avoided customers, suppliers, countries or industries which they viewed as most exposed to financial crime.

“The impact in terms of lost opportunities at both organizational and national level is difficult to quantify, but likely to impact productivity and economic development,” Thomson Reuters said.

The report was conducted online by an independent third party in March 2018. More than 2,000 senior managers at large global organizations completed the survey, from 19 countries.

In a hard-hitting conclusion, the report said: “For the first time our research has put a price on financial crime: three and a half percent of corporate turnover for the 2,373 large companies in our survey alone. That adds up to a staggering $1.45 trillion.”

Financial crime was said to blight individual lives and undermine the ability of governments to provide key services such as education and health. The IMF has shown that it reduces economic growth and social cohesion.

Che Sidanius, global head of financial crime regulation at Thomson Reuters, said that financial crime caused “incalculable” harm around the world. The proceeds of activities spanning bribery, corruption, fraud, and narcotics trafficking have been implicated in the financing of terrorism, human rights abuses such as slavery and child labor, and environmental crime.

“This has serious economic and social costs in terms of the lost revenues to national exchequers that could be invested in social development, and in terms of the impact on individual lives,” Sidanius said.

Other key findings were that 45 percent of MENA respondents had been a victim of financial crime as opposed to 47 percent globally; 96 percent believed that bribery and corruption was an important issue to tackle; 57 percent indicated that the consequences of bribery and corruption meant less government revenue; only 59 percent said that they fully conducted due diligence; and only 60 percent fully conducted due diligence, the report said.