Small businesses looking to lift 40 million poor Arabic

Small businesses looking to lift 40 million poor Arabic

9/7/2014 0:00

Arab Forum presents the results of the Iraqi experience in its field

BAGHDAD - Hussein al-Tamimi Tgb

Eating Arab Forum, which was held in Beirut recently the role of banks in supporting and developing the role of small and medium enterprises in the promotion of economies of Arab and achieve social justice and an Arab vision of comprehensive economic and social development and create jobs by supporting the development and assigning of small and medium enterprises as contribute to the GDP of the countries in the region by 80 percent, especially after taking these projects are expanding regionally in most countries in the region and there became a prominent role for Islamic banks in support of these projects on a large scale.

A member of the International Union of Arab Bankers D.sadeg Shammari pointed out that the Arab community has become aware of the role of small and medium enterprises in economic development, pointing out that they represent more than 90 percent of the projects in most of the world's economies and provide job opportunities for 40-80 percent of the workforce, as well as its contribution by 90 percent of GDP, noting that these projects have achieved economic feasibility great for many of the countries of the region in which they live among them the nearly 40 million people below the poverty line, pointing out that the Forum addressed the desire of a lot of people interested in the region in the establishment of such projects especially after it embarked on banks to provide soft loans on a large scale, especially it has become integral to many strategic industries and the resulting treatments for many economic problems.

Attend a regional

He added in an interview (morning) that the forum, which carry the slogan road to economic development and social justice is the first of its kind to address the small and medium enterprises and the role of Islamic banks in the support and the presence of a regional and international scale in order to create the appropriate environment for the expansion of this experiment regionally by discussing the mechanics of providing the requirements success providing financial and moral support to them.

Providing loans

He pointed out that the forum, which was held in Beirut eat the Iraqi experience and what was achieved on the ground of the results and the mechanism of spread gradually to cover all the provinces, as well as flexibility in the provision of loans to the owners of small and medium enterprises, which exceeded the number 350 000 project, productive and a service in the various disciplines.

Support the banking

He pointed out that Islamic banks all over the world supported these projects aggressively in most countries, especially as the number of banks boat the (600) Bank scattered in 57 countries around the world were able to enter investment channels and many products in their work meaningful and vital enabled it to install Staff Islamic banking industry, and then go to support these projects through financing plans through regular channels showing tracks of the loan in the right direction.

Al-Shammari said that the forum stressed examine the economic problems of structural experienced by most economies of the world that we find limited to high inflation and high unemployment rates and poor distribution of wealth and income (the lack of social justice, distribution) as well as the high ratio of public debt to GDP and the ineffectiveness of market mechanisms and the mechanics of training and education.

Angels eligible

He said the solution lies in the availability of the Angels qualified and capable and locked out of Islamic finance with the efficiency and the ability of high-through controls doctrine and law and values ​​and ethical behavior, and the acceptance of the absolute rule of the sheep Balgram- (profit and loss) within the principle of the abscess security and acceptance of higher principle of succession, considering that money is the king of God Almighty and that man is not the owner, but Mstkhalaf to manage the money honestly, credibility and high transparency.

Product Development

Al-Shammari said: must be equal to all parties (the ground - head Almal- work and organization benefit and harm any profit and loss and show the need for strong and urgent to innovate and develop advanced products in accordance with the provisions of the law for the purpose of building a sustainable competitive advantage to serve large segments of the community and reduce the gap between rich and poor and thus lead to the cohesion of communities.

Banking culture

He said despite the successes of Islamic banks in the financing of small and medium enterprises, but we have not gotten to the level of ambition sought by those interested who have realized a number of conclusions during the forum, mainly the lack of a culture of banking for most small and medium enterprises, and institutions financing small specialized her personal physical and moral Independent.

He pointed to the negligence of categories of graduates of institutes and universities, and the inability of projects to get the raw materials are imported, as well as lack of coordination and integration between small, medium and large.

With the need for a banking institutions to inquire and update the investment map.

Interest support

He pointed out that the forum recommended the importance of dissemination of banking culture and social development of small and medium enterprises as these projects are the seed core of large projects, stressing the establishment of specialized institutions and independent oversees the sector, small and medium enterprises and micro enterprises whose mission would be interest in supporting the project and the coordination of efforts by the government agencies concerned with directed policy development within an integrated development and the development sector small and medium enterprises.

Experiences of successful countries

It also recommended the attention of Islamic banks to social responsibility, considering that social responsibility is the bridge that leads from which these banks and duties towards the society in the fight against poverty, unemployment and the distribution of wealth and contribute to the dissemination of justice and balance, as well as attention to trends strategy and benefit from the experiences of successful countries in the field of small and medium enterprises . And work to improve the standard of living for all members of the communities and the integration of poor Alaguetsaddah session and make them productive members as well as the integration of women's life.

Business Incubators

He focused on the importance of renovation investment map in coordination with the Ministry of Planning and the Central Bank of drawing a clear strategy, as it is necessary to expand the establishment of business incubators and support entrepreneurs to contribute to job creation and the reduction of unemployment and education professions and characters to lift the fortunes of professional and creative, and strengthening the role of the central bank through provide a package of stimulus policies including credit ceilings to encourage access to the necessary funds for these projects, obliging banks determine credit ceilings to finance these projects by at least 25 percent of the lending portfolio.

Supporting legislation

The Shammari in the Forum urged banks to support the development of small and medium enterprises through the ceilings of credit of not less than a certain percentage of the investment portfolio with the introduction of products and formulas for financing modern fit and characteristics of the various economic activities, as well as the development of legislation and the necessary laws and support for these projects, so as to facilitate the operations of its founding and access to government support Kalaafaouat customs and tax with a uniform definition for these projects. Deim as well as the role of non-financial services including learning and training activities to create technical skills as well as an international conference on financial inclusion.

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