The Arab Federation for Digital Economy and the Union of Arab Banks, operating under the umbrella of the Arab League, signed a Memorandum of Understanding (MoU) with the Global Coalition for Effective Logistics.
The MoU is concluded to launch the 'Huma Wealth' programme with the aim of boosting free trade across the Arab region and connecting with a large number of international economic partners. The move is expected to enhance the flexibility of supply chains, boost the growth of small and mid-size enterprises (SMEs) and provide digital frameworks for B2B in line with the requirements of the green economy.
Based on the MoU, the programme will be put in place through a digital platform that will provide new tools and enablers for the B2B market, which will improve efficiency and transparency levels and help companies cut down the risks of doing business and reduce commercial costs. At the same time, the platform will provide businesses financing services and broader perspectives to reach out to markets in the Arab region and the world at large.
Through this platform, the programme aims to increase the gross domestic product (GDP) of Arab economies, optimize trading rates in Arab goods and services, and create new job opportunities.
Dr. Ali Muhammad Al-Khoury, Chairman of the Board of Directors of the Arab Federation for Digital Economy, said that the programme can contribute to providing many services that will be free or for a nominal fee, and enable the linking of small and medium-sized Arab companies to new markets.
This will enhance their opportunities for growth and prosperity, and that the platform will provide accurate and high-quality data and information and will make digital commerce chains more resilient, he added, noting, the programme team will work with business sectors and in coordination with governments in Arab countries to take advantage of the available opportunities.
For his part, Wissam Fattouh, Secretary-General of the Union of Arab Banks, stated, "The (Huma Wealth) programme comes in an ambitious context to achieve the goals of digital economic transformation in the Arab region in diversifying its economies and achieving sustainable economic growth.
He also indicated that the digital platform of the programme "will accelerate Steps towards the digitization of Arab banks by integrating them directly with businesses, where it will be possible to launch a new wave of financing for small and medium companies, which are the cornerstone of our economies. This initiative is expected to provide a global market opportunity worth more than $7.5 trillion for the global banking industry by 2031." Captain Samuel Salloum, CEO of the Global Logistics Alliance (GCEL), said it is important to realize that despite the strength of the finance, insurance and e-commerce industries, only 5% of the B2B market is served digitally. Given the globalization of the commerce sector, digital solutions cannot be successful if they are used in local scales given the potential opportunities if linked to global networks.
Salloum added, "In order to achieve a real transformation in the market for trade between companies, and based on more than 15 years of research and development in the field of the digital economy, we have succeeded in designing an integrated system." He noted that strategic agreements have been implemented with more than 150 countries around the world.
© Copyright Emirates News Agency (WAM) 2021.