IMF Delegates – Middle East

Oman

HE Ahmed Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resource Council

H.E. Ahmed Macki was born in Muscat in 1939. He is married and has one daughter and one son. H.E. is fluent in Arabic, English and French and has a Bachelors degree in Commerce & Economics. He has been conferred with various degrees, decorations and medals from Oman, Egypt, Portugal and France.

After graduating from University, H.E. was appointed as director of the Prime Ministers office and then he joined the diplomatic service in various positions including the first permanent Representative of Oman to the United Nations and ambassador of Oman to the USA and France. He was also non-resident ambassador to Canada, Argentina, Belgium, Spain and Portugal. He has also served as under secretary of the Ministry of Commerce and Industry. In 1988, he was appointed as Minister of Civil Services. From 1995 until the present he has held the position of Minister of National Economy, and Deputy Chairman of the Financial Affairs and Energy Resources Council.

Tel: +968 738270

Fax: +968 736324

P.O. Box: 506 Muscat, Postal Code: 113

Country profile

The main avenues for economic growth in Oman include a diversified, dynamic, open and globalized economy; privatization and free market policies will contribute to the creation of a strong, efficient and competitive private sector; and human resource development policies and job creation. Accordingly, our economic policies are geared towards giving a more pronounced role to the private sector. Other areas of focus include diversifying the productive base; promotion of exports – especially non-oil exports; and encouraging foreign direct investment and domestic investment in order to enhance capital formation.

Oman occupies a strategic geographical location on the Arabian Peninsula at the entrance of the Arabian Gulf (the source of two-thirds of the world’s oil exports) and the junction of the three large continents of Asia, Europe and Africa. This unique position provides easy access to markets in the Middle East, India, South-East Asia, and Europe.

Oman is a land of stunning and varied unspoiled landscapes with extensive clean and safe beaches, a rich cultural heritage, dramatic terrain, fascinating marine life, and abundant scenic beauty. Oman has a glorious 12,000 year history of civilization, which is evident in UNISCO-listed forts, castles and towers. It is devoted to preserving its natural wealth with conservation projects such as turtle breeding beaches, bird sanctuaries and the Arabian Oryx reserve.

Economic profile

Oman’s natural resources include petroleum, natural gas, chromium, copper, asbestos, marble, limestone, and gypsum. Oman’s economy is stable and one of the strongest growing economies in the Middle East with a very attractive investment climate. The strong performance of the economy over the last few years has substantiated by the IMF, which attributed this performance not only to increases in oil prices, but to the prudent and stable macroeconomic, financial and structural policies that lead to price stability and a stable exchange rate in a liberal economic environment.

The oil sector accounted for about 43% of GDP by the end of 2001. According to the target of the current Sixth Five Year Plan (2001-2005), the relative share of oil sector is expected to decrease to 35% in 2005. The Sixth Five Year Plan aims at achieving diversification and a growth rate in the non-oil sector of 5.2%.

Major economic policies are directed towards diversification, and these are mainly geared towards promoting tourism and export-oriented industries within the framework of a more dominant role for the private sector and the development of infrastructure. The key sectors where privatization is currently pursued include electricity, water, telecommunications, aviation, and wastewater.

The government is actively engaged in adopting liberal investor-friendly economic policies and measures to encourage local and foreign entrepreneurs. The investment climate has been improved through the introduction of appropriate investor-friendly laws and regulations. In addition, Oman offers political stability, natural resources, modern infrastructure and scenic beauty. By offering multiple first class incentives, the government is looking to local and foreign investment especially in natural gas related projects, industry and tourism.

Saudi Arabia

Dr Ibrahim Al-Assaf

Minister of Finance, IMF/World Bank Governor for Saudi Arabia

This first Annual Meetings to be held in the Arab world will be an excellent opportunity to exchange knowledge and experience and learn of the many positive actions currently being taken to make Arab economies fully competitive in the emerging, global economy of the 21st century.

The Kingdom of Saudi Arabia, as the largest of the Arab economies, recognizes its responsibilities in the international financial community. Its longstanding strategic policy is to acknowledge the importance of, and to support financial cooperation worldwide. In this regard, it has consistently supported efforts to promote international financial cooperation, exchange rate stability, and measures to preserve balance-of-payments stability. Another key part of this responsibility is assistance in global endeavours to reduce poverty and to support economic and social development. Saudi Arabia, itself a developing country, has provided in recent decades, and continues to provide, a full range of assistance and support to developing countries. Such aid has been channelled both bilaterally (including through the Saudi Fund for Development) and multilaterally.

In this context, since the early 1970s and up to 2002, Saudi Arabia has extended $78.6 billion to over seventy countries around the world, representing on average 4% of the Kingdom’s GDP. This assistance, which has a high grant element, far exceeds the United Nations target for Official Development Assistance (ODA) of 0.7%. It has supported a wide spectrum of development activities in physical and social infrastructure.

Saudi Arabia has extended support as a major shareholder through Arab, Islamic, and other regional and multilateral institutions, ranging from the Islamic Development Bank, the Arab Bank for Economic

Development in Africa, African Development Bank through the Arab Fund for Social and Economic development to the OPEC Fund and the African Development Fund. Saudi Arabia has long recognized the important roles of the International Monetary Fund and the World Bank in the international community, in light of their key roles in helping to stabilize the international monetary system and sustaining economic processes in member countries. Since joining the Bretton Woods institution in 1957 Saudi Arabia has offered them strong support and substantial resources. In addition, it has been a longstanding and active participant in the International Monetary and Financial Committee and its predecessor, the G-20, the BIS and the Development Committee.

Additionally, the Kingdom, having its own chair at both the IMF and the World Bank Group Boards of Executive Directors, has been an active participant in their work and in that of the associated Board Committees. Particular attention has been paid to enhancing international monetary and related coordination to maintain financial stability and the prevention of crises through enhanced monitoring and regulation. Another key focus has been on programs and projects designed to assist the poorer developing countries in improving their economic and social standards. This includes efforts to increase the export access of developing countries to markets in industrial countries, and exposing the harmful results of protectionism. Importantly, Saudi Arabia has also provided assistance to countries emerging from conflict; has supported the World Bank’s efforts to assist the Palestinians; and has made efforts in combating international money laundering and the financing of illegal drugs and terrorism. In this regard, Saudi Arabia was among the first nations to adopt the 40 recommendations of the Financial Action Task Force in 1999

Saudi Arabia has to date extended over $2 billion in assistance to the International Development Association (IDA). It virtually financed the IMF program to help counties successfully overcome the debt crises of the early 1980s with SDR 11 billion (the enlarged access), in addition to contributing to other Fund facilities. Saudi Arabia has supported the Highly Indebted Poor Countries (HIPC) initiative, and has contributed its full share to HIPC Fund established by the IMF. It is also worth mentioning that, long before the HIPC initiative, Saudi Arabia contributed to debt alleviation, writing off debts totalling over $6 billion due to the Kingdom from eleven developing countries.

The Kingdom of Saudi Arabia remains committed to the international community’s efforts through the Bretton Woods institution to maintain international financial stability and cooperation, reduce poverty, increase growth rates, improve trade access, and achieve sustainable development. We look forward to productive and successful Annual Meetings in Dubai.

United Arab Emirates

HE Dr Mohammed Khalfan Bin Kharbash Minister of State for Finance and Industry

Dr Mohammed Khalfan Bin Kharbash was born in October 1956 in Dubai, the United Arab Emirates (UAE). He graduated from Boston University, USA with a B.A. in Economics in 1979 and proceeded to postgraduate studies. He was awarded an MA in Economics in Public Finance in 1982. Dr. Kharbash received his PhD in Economics from Exeter University in the United Kingdom in 1991. He was also a visiting researcher at Harvard University in 1994.

During his career, Dr Kharbash has held several government posts in the Ministry of Finance and Industry. He was initially appointed as the Director of the Investment Department in 1980. He then rose to become the Assistant Under Secretary for Revenue and Budget in 1992 and subsequently to the position of Minister of State for Finance and Industry from 1997 to the present.

Dr. Kharbash is known for his forward-looking leadership style and his belief that government sectors need to continuously innovate to meet ever-changing external demands. Under his leadership, the Ministry has undergone tremendous improvements in its operations. He is also a firm believer that change can only happen if the right competencies and tools are given to the people. In recognition of his foresight and commitment to good governance, Dr. Kharbash was appointed as a member of the Advisory Board of the Institute for Government Innovation at Harvard University.

Apart from leading the UAE Ministry of Finance and Industry, Dr. Kharbash is also a board member of several financial and economic institutions. He is currently the Chairman of Dubai Islamic Bank and Emirates Industrial Bank, Vice Chairman of the General Pension and Social Security Authority, Emirates General Petroleum Corporation, EMAAR Properties Company (PJSC), Tabreed (PJSC) and the Real Estate Bank. He is also a member of the Board of Directors of the Gulf Investment Corporation (Kuwait) and the Emirates Stocks and Commodities Authority.

In 1997, His Excellency held the post of the Chairman for the International Monetary Fund (IMF) and World Bank Annual Meetings, which were held in Hong Kong. He was also the chairman of the G11 Financial Committee of the IMF. Dr. Kharbash is currently the Alternative Governor of the UAE at the IMF, the World Bank, the Arab Fund for Economics and Social Development (Kuwait), the Islamic Development Bank (Saudi Arabia) and the OPEC Fund (Austria).