Back Matter

Back Matter

Author(s):
Saíd El-Naggar
Published Date:
September 1994
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    Arab Capital Markets Development: General Scope of the AMF Work Program

    United Nations University, Wider Study Group Series No. 5, Foreign Portfolio Investment in Emerging Equity Markets, March, 1990

    Objective of Program

    The objective of the AMF capital market development program is to assist its Arab member countries in upgrading their domestic corporate securities markets with a view toward increasing the contribution of these markets to the achievement of the economic and social policy goals of the respective countries. A second aim is to achieve harmonization and coordination among the various national domestic markets that would facilitate their eventual integration into regional or subregional markets.

    In its early stages, the AMF program aims to develop a centralized data system covering the domestic securities markets of member countries as well as intraregional markets. The program will identify which domestic markets may be strengthened and upgraded. Through the appropriate channels, the AMF consults with member countries and proposes strategies.

    Scope of the Work Program

    The work program is designed to address three areas of concern, namely

    • Survey and evaluate how to modify legal and regulatory frameworks so as to upgrade their development and ultimately integrate them with, or give them access to, a regional market;

    • Create and operate an Arab Markets Data Base (AMDB) System to support AMF technical assistance project activity, provide member countries and their markets with a comprehensive information system, and enhance awareness of and confidence in securities markets on the part of the public; and

    • Provide appropriate technical assistance for the development of capital markets, the enhancement of domestic savings mobilization and the promotion of inter-Arab financial flows.

    Under the Survey and Evaluation program, the AMF undertakes the following activities:

    • To carry out or sponsor field surveys of existing markets of AMF member countries;

    • To create and maintain an information system on legal and regulatory frameworks at AMF;

    • To provide or sponsor advisory services and technical assistance to member countries for establishing or upgrading those frameworks;

    • To elaborate proposals for regulations or guidelines governing the creation and operation of regional or subregional markets; and

    • To carry out or sponsor research projects for development of securities markets and to publish or coordinate publication of papers on the subject.

    The AMDB would provide information and data on the following subjects:

    • • Macroeconomic and social data on member countries, including GNP and GDP, gross fixed capital formation and other investment data, savings ratios, and financial instruments;

    • Enterprise structure;

    • Corporate entities available for a public offering of securities, including number, size, sectors, ownership distribution, and business performance record;

    • Primary or issues market, including procedures, size, and cost;

    • Both formal and informal secondary markets;

    • Intermediation structure such as type, number, resources, level of activity, and financial data;

    • Other professionals intervening in markets such as accountants, auditors, and investment advisors, including their professional associations; and

    • Training facilities.

    The AMDB work program comprises the following activities:

    • To develop the AMDB elements and programs;

    • To carry out or sponsor AMDB surveys in those member countries with existing securities markets or identified market potential;

    • To establish and follow up on procedures for continuous flow to, and exchange with, AMF of country-specific AMDB information;

    • To provide or sponsor advisory services in the area of technical assistance and training for the establishment and operation of continuously updated AMDB in qualifying member countries; and

    • To disseminate or coordinate the dissemination of securities market data to the public at large.

    The capital market technical assistance activities to be carried out under the work program would comprise those mentioned under the survey and evaluation and AMDB programs as well as assistance to member countries for the establishment or upgrading of domestic corporate securities markets in the areas of savings mobilization techniques, primary issue or secondary offering mechanisms and procedures, trading mechanisms and procedures, settlement transfer and custody mechanisms and procedures, institutional and operating aspects of securities intermediation, corporate issuer and trading market information and its disclosure or dissemination, and accounting and auditing standards development and enforcement.

    Current Activity

    The AMF has so far completed field surveys of all major Arab capital markets, including Algeria, Bahrain, Egypt, Jordan, Kuwait, Morocco, Oman, Qatar, Tunisia, and the United Arab Emirates. Moreover, Saudi Arabia was consulted within the framework of GCC regional studies on the securities markets undertaken by AMF. The purpose has been

    • To review the recent developments and current status of, as well as likely trends for, future development of domestic capital markets in AMF member countries;

    • To identify issues affecting and problems impairing domestic capital market development in those countries;

    • To recommend strategies that would foster their development; enhance harmonization of their respective legal and regulatory frameworks and operating aspects with those of other member countries; and expand coordination among member countries;

    • To identify correspondents for the regular and timely supply of information to the in-house AMDB; and

    • To identify elements for a medium-term work program for AMF research and technical assistance activities.

    The AMF has also recently completed a training course for its AMDB correspondents. Information on the activity of domestic securities markets is expected to flow to AMF headquarters soon and the initiation of the data base system is expected to start by 1994.

    LIST OF PARTICIPANTS
    • Moderator

      • Said El-Naggar

      • University of Cairo

      • Cairo, Egypt

    • Authors

      • Ahmed Abisourour

      • Arab Monetary Fund

      • Abu Dhabi

      • Manuel Guitián

      • International Monetary Fund

      • Washington, D.C.

      • André Hovaguimian

      • International Finance Corporation

      • Washington, D.C.

    • Participants

      • Ghazi Abdul-Jawad

      • Gulf International Bank

      • Manama, Bahrain

      • Ahmed Abdullatif

      • Riyadh Bank

      • Riyadh, Saudi Arabia

      • Abdullah Al-Gifri

      • Ministry of Finance

      • Sanaa, Yemen

      • Mahmoud Bin Mohamad Al-Jarwani

      • Muscat Securities Market

      • Ruwi, Oman

      • Jassim Al-Mannai

      • Gulf Investment Corporation

      • Safat, Kuwait

      • Abdallah Y. Al-Mouallimi

      • Olayan Financing Company

      • Riyadh, Saudi Arabia

      • Mohammed Hassan Faj Al-Noor

      • Capital Market Authority

      • Cairo, Egypt

      • Hisham Al-Otabi

      • Kuwait Stock Exchange Market

      • Safat, Kuwait

      • Mujib Turki Al-Turki

      • Qatar Central Bank

      • Doha, Qatar

      • Fawzi Behzad

      • Bahrain Stock Exchange

      • Manama, Bahrain

      • Mohammed Benissad

      • University of Algiers

      • Algiers, Algeria

      • Mohammad Bin Hamam

      • Central Bank of Yemen

      • Sanaa, Yemen

      • Louay Boustanji

      • Emirates Banks Association

      • Abu Dhabi

      • Ibrahim El-Gaali

      • Abu Dhabi Chamber of Commerce and Industries

      • Abu Dhabi

      • Ahmed El-Hedwaj

      • Tunis Stock Exchange

      • Tunis, Tunisia

      • Ibrahim El-Ibrahimi

      • Kuwait Stock Exchange Market

      • Safat, Kuwait

      • Mostafa El-Said

      • University of Cairo

      • Cairo, Egypt

      • Rihan Mubarak Fayez

      • Ministry of Planning

      • Abu Dhabi

      • Abdesatar Grissa

      • University of Tunis

      • Tunis, Tunisia

      • Aqil M. Hadi

      • United Arab Emirates University

      • Al Ain, United Arab Emirates

      • Mohammad Medhat Hassanen

      • American University in Cairo

      • Cairo, Egypt

      • Mostafa Hodeib

      • The Arab Institute for Banking Studies

      • Amman, Jordan

      • Samir Makdisi

      • American University of Beirut

      • Beirut, Lebanon

      • Hikmat S. Nashashibi

      • ABC International plc

      • London, United Kingdom

      • Abdelmalek Ouenniche

      • Bank Al-Maghrib

      • Rabat, Morocco

      • Hashem Sabbagh

      • Al-Buraimi Group

      • Al-Buraimi, Oman

      • Abdullah Mohammad Shamieh

      • Kuranios University

      • Benghazi, Libya

      • Robert Sursock

      • Arab and International Investment Bank

      • Paris, France

      • Ali Salman Thamer

      • Bahrain Stock Exchange

      • Manama, Bahrain

      • Umayya Toukan

      • Amman Financial Market

      • Amman, Jordan

    • International Monetary Fund

      • Ahmed M. Abushadi

      • Mohamed El-Erian

      • Manuel Guitián

    • International Finance Corporation

      • Andre Houvaguimian

      • Director

      • Central Asia, Middle East and North Africa

    • Arab Fund for Economic and Social Development

      • Abdullatil Al-Hamad

      • Director General and Chairman of the Board

      • Fuad Abbas

      • Hussein M. Amach

    • Arab Monetary Fund

      • Osama J. Faquih

      • Director General and Chairman of the Board

      • Samir R. Abiad

      • Ahmed Abisourour

      • Faris Bingaradi

    See Ahmed Abisourour, “The Emerging Arab Capital Markets: Status, Role, and Development Prospects.”

    See Manuel Guitián, “The Role of Financial Sector Reform in Macroeconomic and Structural Adjustment.”

    See Andre Hovaguimian, “The Role of Financial Institutions in Facilitating Investment and Capital Flows.”

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