THE ARAB MONETARY FUND PUBLISHES A STUDY ON "THE ECONOMIC GROWTH RESPONSE TO THE DEVELOPMENT OF THE FINANCIAL SECTOR IN THE ARAB COUNTRIES"

by **claud39** Fri Jun 26, 2020 10:56 am

THE ARAB MONETARY FUND PUBLISHES A STUDY ON "THE ECONOMIC GROWTH RESPONSE TO THE DEVELOPMENT OF THE FINANCIAL SECTOR IN THE ARAB COUNTRIES"
2020-06-25

In the context of the efforts made by the Arab Monetary Fund in the field of studies and research activity in order to support the financial authorities in the Arab countries in priority financial sector development issues, the Fund prepared in the framework of the "Financial Sector Development Studies Series" a study on " the economic growth response to the development of the financial sector in the countries Arabia , "the study aims to enhance understanding of the relationship between the development of the financial sector and economic growth in the Arab region using indicators of financial development. Specifically, the study focused on the nature and extent of the relationship between the financial sector and economic growth in Arab countries in the short and long term.

In view of the important role that the financial sector plays in promoting economic growth, most Arab countries have paid special attention to its development through the issuance of many regulatory and supervisory legislations to further activate its role in the economy. The literature lists the relationship between the development of the financial sector and economic growth in some Arab countries, with no clear consensus on how economic growth responds to changes in the financial sector because of the heterogeneity in economies and the degree of development of the financial sector and how to measure it.

The results indicated that the economic growth responds positively to the changes in the financial sector in some Arab economies, with varying the size of the response between countries and according to the indicator used to measure the development of the financial sector. Accordingly, the study presented a set of important recommendations that can assist policymakers in developing the financial sector, thus activating its role in promoting investment to stimulate economic growth in Arab countries in light of the current conditions characterized by many economic and financial fluctuations.

In this context, policymakers can develop the financial sector by easing restrictions on credit provided, and promoting effective oversight of the financial sector by issuing appropriate legislation and adopting financial liberalization policies. Resources must also be managed effectively to address the financial sector imbalance in order to activate its role in the national economy. Moreover, the financial authorities can develop strategies and plans to strengthen the financial sector in order to overcome the challenges preventing economic growth in the Arab region.

The full version of the study is available at this link

https://www.amf.org.ae/en/study/responses-economic-growth-financial-development-changes-evidence-arab-countries

Under the title:

" Responses of Economic Growth to Financial Development Changes: Evidence from Arab Countries "

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%8F%D8%B5%D8%AF%D8%B1-%D8%AF%D8%B1%D8%A7%D8%B3%D8%A9-%D8%AD%D9%88%D9%84-%D8%A7%D8%B3%D8%AA%D8%AC%D8%A7%D8%A8%D8%A9-%D8%A7%D9%84%D9%86%D9%85%D9%88-%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A-%D9%84%D8%AA%D8%B7%D9%88%D8%B1-%D8%A7%D9%84%D9%82%D8%B7%D8%A7%D8%B9-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%81%D9%8A-%D8%A7%D9%84%D8%AF%D9%88%D9%84

by **claud39** Fri Jun 26, 2020 10:59 am

THE ARAB MONETARY FUND ISSUES A STUDY ON "THE IMPACT OF MUTUAL ECONOMIC RELATIONS ON FINANCIAL INTEGRATION IN THE ARAB GULF REGION"
2020-06-25

In the context of the efforts made by the Arab Monetary Fund in the field of studies and research activity in order to support the financial authorities in the Arab countries in priority financial sector development issues, the Fund prepared, within the framework of the "Financial Sector Development Studies Series" a study on "The Impact of Economic Relationships on Financial Integration in The Arabian Gulf Region . " The study touched on the development of financial ties within the Gulf Arab region and the effect of volatile periods on the integration between the Gulf financial markets.

The Gulf Cooperation Council states share economic interests and priorities, which motivated them to establish the Gulf Cooperation Council in 1981 in order to achieve cooperation and integration in the economic and financial fields. Since then, the six member states have negotiated multiple agreements within the region to enhance economic integration between them, in addition to adopting joint regulations and legislation in the economic fields.

The results of the study indicated that the path of financial integration needs to be further accelerated, especially in the links between financial markets, and the authorities are making significant efforts in the field of economic cooperation. The results also revealed a change in financial ties between the economies of the Gulf Cooperation Council states during different periods, which indicates that the path of diversification of equity portfolios is changing over time.

Based on the results, the study presented a set of important recommendations that can help in the continued enhancement of financial integration between the economies of the Gulf Cooperation Council countries. In this context, the authorities can enhance work to ensure greater harmonization and cooperation among market participants across all stock sectors in the region through digitization that may support mediation in this context.

It is also possible to build a unified financial force in the GCC region, by creating a common financial market whose policies are in line with countries ’goals to enhance financial integration.

The full version of the study is available at this link

https://www.amf.org.ae/en/study/does-economic-cooperation-lead-great-stock-market-integration-gcc-region

Under the title:

" Does Economic Cooperation Lead to Great Stock Market Integration in the GCC Region? "

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%8F%D8%B5%D8%AF%D8%B1-%D8%AF%D8%B1%D8%A7%D8%B3%D8%A9-%D8%AD%D9%88%D9%84-%D8%A3%D8%AB%D8%B1-%D8%A7%D9%84%D8%B9%D9%84%D8%A7%D9%82%D8%A7%D8%AA-%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D8%AA%D8%A8%D8%A7%D8%AF%D9%84%D8%A9-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%D8%AA%D9%83%D8%A7%D9%85%D9%84-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A-%D9%81%D9%8A