Lebanon Needs to Implement Reforms While Economy’s Strong, Siniora Says
31 May 2010
MAY 31 (Gulf Intelligence): Lebanon, which saw its economy
expand 9 percent last year, should make the structural reforms
necessary to tackle its massive debt during this period of economic
growth as it will be much harder to make the required changes in
less healthier times, the country's former prime minister said.
These subjects of reform and transparency will be among the
topics tackled in the Dubai Beirut Forum at the Dubai International
Financial Center on June 6 when Arqaam Capital, the only investment
bank to be headquartered in the DIFC, will host Lebanon's Fuad
Siniora and business leaders from across the region to explore what
it takes to claim the mantle as the Middle East's premier business
hub. ``Economic and financial reforms should be done in good times
because their cost will be higher and their efficiency lower in
hard times,'' said Siniora, who leads the majority party in the
Lebanese parliament after stepping down as prime minister in
November.
``The crisis in Europe should provide an opportunity for us in
the Arab world in general and in Europe in particular, to draw the
appropriate lessons -- we need to go back to economic fundamentals
because they do matter,'' he said. The Middle East is emerging from
a sovereign debt crisis in Dubai that roiled international markets
last year and threatened to topple the emirate as the region's
widely acknowledged commercial centre. Dubai World, the state-owned
holding company, said earlier this month that it reached an
agreement with its main creditor group to restructure $23.5 billion
of liabilities. Arqaam Capital, which began operating in the DIFC
in 2007, has recently turned its focus on growing its offering
across the region. The Company has announced that it will open its
planned equity research centre in Beirut. This new facility will in
time provide coverage of the more than 300 companies currently
traded on the Middle East North African and Turkish stock markets
with market capitalizations of $500 million or more.
``The Middle East has enormous potential, both in terms of the
latent talent within the region and its strategic geographic
position allowing international firms to gain a foothold in the
emerging markets,'' said Riad Meliti, chief executive officer of
Arqaam Capital. ``The Dubai Beirut Forum demonstrates the growing
importance being attributed to Beirut as a market by a number of
financial firms operating in Dubai and the other Gulf economies,''
he said.
Lebanon's public debt, accumulated over the last two decades as
the country rebuilt the state's infrastructure after a 15-year
civil war that ended in 1990 and a month long conflict with Israel
in 2006, reached $52 billion at the end of February.
BACKGROUND:
Riad Meliti CEO, Arqaam Capital
Riad Meliti is Chief Executive Officer of Arqaam Capital. He is an
investment banker with over 14 years of experience. He began his
career at Credit Suisse First Boston and then moved to UBS Warburg,
before finally joining Barclays Capital. He was a Director and Head
of the Middle East desk at Barclays Capital, with added
responsibility for Central Bank relationships. Under his
management, the Middle East business at Barclays Capital grew in
terms of revenue base by eight-fold; with the Central Bank business
showing an increase in revenue of 80% over the 18 months he was
responsible. In 2004, Mr. Meliti left Barclays Capital to found the
CiC Group, which subsequently re-branded to Arqaam Capital. Mr
Meliti has a Bachelor's in Economics from University College,
London.
Arqaam Capital
Arqaam Capital, a strong, fast-growing player in the investment
banking world, bringing regional and international product
offerings to the Middle East, has really begun to make an impact on
the region's investment banking industry in the three years since
its launch. Capitalized in 2007 with $140 million, Arqaam now has
65 staff and seven lines of business, covering asset management,
brokerage, corporate finance, credit, custody, equity derivatives
and treasury. The key for Arqaam is the ability to be flexible and
adaptable to the needs of it growing client base and the markets.
Arqaam Capital serves as a reliable conduit for institutional funds
flowing three different ways-for the money of high-net worth Middle
Eastern investors keen to invest in the region and internationally,
and for the cash of international investors seeking opportunities
in the Middle East.
Fuad Siniora Prime Minister of Lebanon 2005-2009 H.E Mr. Fuad
Siniora is currently the Head of the Future Bloc in the Lebanese
Parliament. He also served as the President of the Council of
Ministers in Lebanon from 2005 to 2009. Prior to his Premiership
Mr. Siniora served as the Minister of Finance between 2000 and
2004. Mr. Siniora was also the Chairman - Chief Executive Officer
of the Méditerranée Group from 2004 to 2005 and served on the Board
of Arab Bank. He was appointed as acting Minister of State for
Financial Affairs in successive cabinets during H.E Rafic Hariri's
tenure as Prime Minister between 1992 and 1998. Between 1982 and
1992 Mr. Siniora held several high level executive posts within the
Méditerranée Group. Notably, he was the Chairman-General Manager of
Saudi Lebanese Bank and Banque De La Méditerranée and served as
Vice Chairman of Banque De La Méditerranée Suisse as well as the
Méditerranée Investors Group. Mr. Siniora was also the Chairman-
Managing Director of the IRAD, sal and Mal, sal Holding Companies
and was a director at the Arab Universal Insurance &
Reinsurance Co.
Arqaam Capital Dubai Beirut Forum
Can The Middle East Have More Than One Hub?
A part of Thegulfintelligence.com Knowledge Series to be held at
the Dubai International Financial Center on June 6th with a
discussion topic looking at Middle East hubs, old and new, and
explore whether the Lebanese economic boom of the last 3 makes it a
contender again. A chance for the Gulf financial and business
industry to engage with Fuad Siniora, one of the region's top
financial thinkers and the main shepherd of the Lebanese economy
over the last 20 years.
CONTACT: For more information please contact Eleonora Ugge' - eleonora.ugge@arqaamcapital.com
For more information on the Dubai Beirut Forum, please visit www.thegulfintelligence.com
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