Wissam Fattouh, secretary general of the Union of Arab Banks (UAB) and the World Union of Arab bankers, talks about the problems with which the Arab banking sector is confronted and the challenges of the reconstruction of the banking system of Syria.
Global finance: The UAB brings together the banking sector in the Arab world for over 50 years. What are the critical problems you are currently working on?
Wissam Fattouh: Today we have two key priorities. First, recognizing the essential role of the banking sector in the conduct of sustainable economic growth, we are actively working to align Arabic financial institutions on the UN sustainable development objectives. This includes the promotion of green finances, investments in climate resilience and financial inclusion to support companies, women and entrepreneurship for medium -sized young people.
Second, as several Arab countries – including Syria, Yemen, Lebanon, Sudan and Libya – economic crises and geopolitical instability that have had an impact on their banking systems, we are committed to supporting the restructuring and revitalization of these banking systems by providing technical assistance, political advice and capacity building programs.
GF: The region is very heterogeneous and shaken with uncertainties. How does your membership find common ground?
Fattouh: Despite this heterogeneity, I believe that there are fundamental common points that unite the Arab banking sector. On the one hand, all Arab countries recognize the essential role of the banking system in the conduct of economic development and stability. There is a common commitment to strengthen financial inclusion, improve regulatory executives and promote digital transformation. In this regard, the UAB acts as a platform for dialogue and cooperation.
On the other hand, many of the challenges faced by the Arab banking sector – such as disintegration, compliance with international regulations, development of development and climate change – transcend national borders. UAB plays a role in promoting regional collaboration to develop harmonized strategies that respond to these common concerns.
GF: What are the greatest forces of Arab banks in global finance today?
Fattouh: One of the greatest advantages of Arab banks is their strong capitalization. Over the years, they have maintained solid liquidity pads and respected prudent risk management strategies, which allows them to resist global economic shocks and geopolitical uncertainties. Regulatory reforms have further strengthened their capacity to navigate in complex financial landscapes.
Another determining force is their rapid adoption of digital transformation. The expansion of digital payment systems and open banking initiatives underlines the adaptability and competitiveness of the sector.
In addition, Arab banks play a strategic role in regional and international financial markets. Their commitment to trade financing, cross -border investments and fund flows has strengthened economic ties between the Arab world and the global markets.
GF: Looking at the coming year, what are the biggest concerns of your members?
Fattouh: Compliance with international banking regulations, in particular those linked to anti-suction; Fighting the financing of terrorism; And climate -related financial disclosure. It is essential to conclude a balance between regulatory compliance and business growth to maintain solid links with global financial markets.
Another major challenge is to manage geopolitical and economic uncertainties in the region. Consequently, the strengthening of risk management executives and strengthening the resilience of financial networks will be crucial to mitigate risks.
GF: With the recent UAB plan to reform the banking system of Syria, what main challenges are financial institutions confronted in the country’s reconstruction efforts?
Fattouh: Banks in the country have been largely isolated from the international financial system due to sanctions and disintegration measures imposed by global institutions. A key priority will now be to reintegrate Syrian banks into the global financial system, which will involve aligning regulatory executives with international standards, rebuilding corresponding banking relations and attacking compliance with anti-whiteness regulations and the fight against terrorism financing.
At the same time, efforts must be made to recapitalize banks, resolve non -efficient loans, modernize banking infrastructure and develop financial inclusion. UAB plays a proactive role in preparing the reconstruction of the Syrian banking sector once the political situation stabilizes. We are committed to working with regional and international stakeholders to provide technical assistance, capacity building programs and political advice to ensure a fluid and effective transition.