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International Monetary Fund: Arab countries can gain greater benefit from financial technology

Arab countries can gain greater benefit from financial technology

Arab countries can gain greater benefit from financial technology

Jihad Azour, director of the Middle East Division and Central Asia at the International Monetary Fund, said that Arab countries can benefit from more and more structural financial technology. The area is rich in young people and many migrants. In addition to the strong need for economic and financial diversity … but explained that SMEs in the Middle East were the largest gap in financial coverage around the world.

He said that the choice of Egypt was to be the platform for the financial inclusion report for small and medium-sized enterprises as one of the largest economies in the region and has strong opportunities and its important role in this area with thanks to the integrated banking and human capital department represented by the highest percentage of young people.

Azour said at a conference held on Tuesday at the Americas University in Cairo to publish a report entitled "Including Small and Medium Enterprise Initiative Financial Coverage in the Middle East, North Africa and Central Asia . " The report is & # 39; show that the financial service for SMEs and individuals unable to Access basic financial services is one solution to increase; financial technology.

He said that three-quarters of the companies that emerge in the region in Egypt, Lebanon, Jordan and the UAE. They also added a number of business acres in the field of financial technology, particularly in the areas of electronic payment responses,

Azour said that small and medium-sized enterprises include half of the Arab-based staff, but the funding opportunities available to them are the lowest in the world, Investigations on economic centers show that these projects are in Egypt, for example, to & # 39; including 75% of staff, 50 per cent of them deal with banks.

He said that loans made to small and medium-sized enterprises are not more than 7 per cent of the total bank loan in the department, saying that the support and power of these projects is a key element in the register, Anything to grow in the & # 39; moved, saying 96 per cent of small registered companies in the Arab region.

The publication of the report was published two days after Christine Lagarde, International Finance Fund Executive Director, stated in a World World Summit speech that Arab countries such as Egypt, Jordan and UAE have begun Comprehensive strategies to increase greater financial inclusion, Say that the property can help those countries to Achieving their goals by enhancing the activity of this department.

Lagarde said small and medium-sized enterprises accounted for 96% of registered companies. The financing gap available to holders of annual economic growth SMEs may up to 1 per cent and this may result in around 15 million jobs before 2025 in the Arabian region, she said.

On the other hand, Lagarde said that the Egyptian is making good efforts to go to # 39; strengthening its fiscal framework, and proposing the steps made by a number of Arab countries, especially Egypt, UAE and Saudi Arabia to strengthen their fiscal policies to avoid any future challenges.

Lagarde stressed the importance of fiscal and flexible frameworks in the Arab region to build strong foundations for such policies, including a number of basic steps to achieve fiscal policy objectives, and allow governments to plan their budgets through the medium.

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