Arab states urged to defend their foreign assets

Gulf oil producers and other Arab countries should work for defending their investments abroad in any new post-crisis arrangements in the global financial system, according to a senior Arab League economist.

The crisis should also prompt regional nations to embark on reforms in their banking and financial sectors to ensure long-term stability in their markets, said Hazim Biblawi, an advisor to the Abu Dhabi-based Arab Monetary Fund (AMF), one of the main Arab League financial organisations.

In a 25-page study on the impact of the crisis on Arab economies, Biblawi urged regional governments to actively participate in any future global discussions on the new shape of the international financial order.