Sunday , October 24 2021

Launch of an Arab-Chinese investment bank with a capital of USD 500 million


Wissam Fattouh, Secretary General of the Association of Arab Banks, said that 2020 will witness the launch of an Arab-Chinese investment bank with a capital of USD 500 million.
Fattouh pointed out that the Arab Union has been contacting the Chinese side for more than two years to start the business and services of the Arab-China Investment Bank, especially since it is an important economic and commercial power in the world and is interested in investing in the Middle East.
He pointed out that the population of China and Arab countries is around 37 percent of the world's population because China has 1.4 billion people, while the Arab population has about 400 million people, which is 1.8 billion, which indicates that this huge number needs For strong banking services as part of a strong promotion of trade and investment between both parties.
He stressed that although the volume of trade between Arab countries and China from 2007 to 2014 is significant, but it is not necessary, and thus move the Union Banks towards China to plan the start-up of the Arab-China Bank.
Fattouh said the federation signed several memoranda of understanding, one of the China Council for the Promotion of Foreign Trade and the Silk Road Memorandum of Understanding from the International Silk Road Chamber last week to establish an Arab-Chinese platform.
Fattouh said that in October an important agreement was signed regarding the establishment of an Arab-Chinese investment bank in which it is expected that it will be an Arabic and Chinese contribution to the bank.
He added that the bank is interested in the Chinese bank, the European Investment Bank and the interest of many Arab banks in Lebanon, Jordan, Egypt and the Gulf countries to invest in the Arab bank of China. Where will it be located in one of the Arab countries.
He explained that the bank's goal is not only to finance infrastructure projects in Arab countries and launch investment projects, but also to finance the reconstruction of Arab countries that have suffered as a result of wars and security situations that have affected their infrastructure, such as Yemen, Iraq, Syria and Libya, thanks to cooperation with the governments of these countries.
Fattouh confirmed that there will be a detailed discussion on the project of the new bank with the Chinese side during the Arab financial and banking week, which will take place on 13-16 November in Beirut on the occasion of the 45th anniversary of the federation.
He said that the discussions will focus more on the proportion of shareholders in the new bank, the expected proportion of contributions from the Arab countries around 60 percent and 40 percent of China.
Fattouh said that the beginning of 2020 will start the bank's activity and its investment project will start, which indicated that next year will be a preparatory year for the establishment of the bank's statute and the adoption of capital, while also attracting shareholders wishing to enter the bank.

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