DEAD SEA, Jordan: Jordan’s King Abdullah opened a World Economic forum (WEF) conference yesterday by urging participants to help Arab countries formulate economic, political and education reform.
“Your action can have a huge impact,” King Abdullah told over 1,200 business, political and civil leaders attending the three-day conference. “In the region, you will help forge consensus on specific reforms. On the global scene, you will be encouraging support for the Arab World’s initiative,” he said.
In reference to the Arab-Israeli conflict, King Abdullah underlined the importance of “regional stability” in the Mideast. “This forum must also face the realities of peace and conflict,” he said. “Regional stability remains a major barrier to sustainable development and prosperity. Failing to solve this problem is simply not an option.”
The WEF conference which is convening at the Dead Sea for the third year in a row, is being held under the theme “Seizing the Moment”.
In addition to helping Arab countries work out specific reforms, conference participants will tackle other issues including challenges facing the new government in Iraq, the intrinsic links between global and Middle East security, Islam and terrorism and ways to spur growth in the Arab region.
n The politically influential son of Libyan leader Muammar Gaddafi said yesterday that Libya would partly privatise five banks over the next six months and let foreign banks hold up to 50 per cent.
The move is part of Libyan efforts to liberalise a socialist economy as it re-enters the global economic and political mainstream following years of sanctions.
Seif Al Islam Gaddafi also said that foreign banks would soon be allowed to set up retail operations in Libya.
“We will allow foreign banks to buy shares in the Libyan banks through the privatisation process,” Gaddafi said on the sidelines of a World Economic Forum regional meeting in Jordan.
“They can participate and be a minority shareholder, but they have a say on the management,” he added.
UN sanctions were lifted in 2003 after Libya took responsibility for the 1988 Lockerbie aircraft bombing and agreed to a compensation deal.
The United States revoked a broad trade embargo in 2004, but Tripoli remains on a US list accusing it of being a state sponsor of terrorism, which means some restrictions on dealings remain.
Seif Al Islam Gaddafi has played a behind-the-scenes role in Libya’s reconciliation with the United States, Britain, France and Germany, paying compensation for bomb attacks of the 1980s.
He said that Libya would allow the foreign banks to buy shares in two of its banks this month. It would allow them to buy shares in the remaining three banks in the next six months.
He did not name the banks involved.
Libyan officials said last year that two of the country’s big five state banks were being prepared for privatisation, and had said finding a foreign partner was a possibility.
Libya’s central bank governor has said that some European and Arab firms had shown an interest in the banks.
Separately, at least two US banks said last year that they were looking at resuming business with Libya but spoke about trade or correspondent banking deals, not opening offices.
Libya launched a privatisation programme in 2003, offering to sell roughly 360 companies as part of effort to restructure the socialist economy along market principles.
The move has attracted foreign interest, mostly in the oil-producing country’s energy industry. But officials have said foreigners have also been looking at banks and cement firms.
Some potential investors have voiced frustration at the slow pace of economic reform. They say Libya needs to address hurdles to business such as time-consuming bureaucracy and the lack of independent arbitration mechanisms to resolve contract disputes.                          – Agencies



photo : Klaus Schwab, founder and Executive Chairman of the World Economic Forum (right) talks to Robert Zoellik, US deputy Secretary of State (left) before the opening of the forum in Southern Shuneh, Jordan.           – AP

Last update on: 21-5-2005