Addressing participants at the opening of the summit, Babacan said Turkey and the Arab world have enough potential to further improve economic ties, as he recalled that Turkey’s trade volume with Arab countries had climbed to $37 billion in 2008 from $7 billion in 2002. Babacan said 1.5 million Arab tourists visit Turkey annually while over 2,000 Arab companies have investments in the country. He said the fact that the Union of Arab Banks, which has 400 members with total assets over $2 trillion, organized the event in İstanbul illustrates Arab investors’ interest in the Turkish market.
Noting that the Turkish government has recently started to implement an action plan to eventually turn İstanbul into a global financial hub, Babacan said the country boasts of a crisis-proof banking sector. “Turkey was the only Organization for Economic Cooperation and Development [OECD] member that did not have to intervene in its banking industry during the 2009 global credit crunch,” he said. He stated that Turkish financial markets have a lower risk of failure when compared to some EU countries and that Turkey owed such a position to sound economic policies.
Also addressing the audience, Union of Arab Banks Chairman Adnan Ahmad Youssef said several Saudi banks as well as banks from Qatar and the United Arab Emirates were interested in investing in the Turkish market. Youssef told the Anatolia news agency that relations between Turkish and Arab banks were “very good,” adding that they envision that relations will develop further.
He said they were expecting a partnership to be set up between Turkey’s Ziraat Bankası and the Commercial Bank of Syria, adding that the two banks would cooperate to improve commerce between Turkey and Syria.
Banking Regulation and Supervision Agency (BDDK) President Tevfik Bilgin called on Arab bankers to increase their shares in the Turkish financial market during his speech. “There are six Arab banks currently operating in Turkey, and their share of the market stands at only around 5 to 6 percent. This is far below the desired level; we are expecting Arab banks to expand with new investments in the Turkish market,” he explained. Underlining that the Turkish financial market has relatively higher profits and sustainable growth when compared to many EU markets, Bilgin asserted that Turkey, with its developed IT infrastructure, qualified personnel potential and diversified products, will welcome new Arab banks with open arms.
The Union of Arab Banks is organizing the International Arab Banking Summit in İstanbul in cooperation with the Central Bank of Turkey, the Turkish Banks Association (TBB), the BDDK and the World Union of Arab Bankers. The summit is titled “From Crisis to Financial Stability,” and participants will be able to enjoy debates on current developments in the global markets along with the role of banks in exiting crises.
