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Mr. R.Seetharaman, Doha Bank Group CEO narrated in detail the current global crisis and its impact on the global economy. He recalled the revised IMF projections on the global growth to about 4 per cent through 2012 from over 5 per cent in 2010 and the real GDP in the advanced economies is projected to expand at an anemic pace of about 1.6 percent in 2011 and 2 percent in 2012. This assumes that the European policymakers contain the crisis in the euro area periphery, that U.S. policymakers strike a judicious balance between support for the economy and medium-term fiscal consolidation and that the volatility in global financial markets does not escalate.
Mr. R.Seetharaman further said “The developed world will come out of recession only when the mighty engine of finance turns to the task of developing a sustainable future. And that faces political, not economic obstacles. The fundamental problem is that the US and Europe have failed to develop vision, strategy or practice that can drive economic growth in the face of the vitality and growing competitive advantages of emerging nations. We witnessed US losing its AAA rating this year and we also saw divergence in monetary and fiscal policy contributing to the current European crisis. US is witnessing deficit problems and the EURO zone has its own problems arising out of Greece, Italy and Spain, the global economic growth depends on Asia and Middle East, the key drivers. These and the ongoing social change in some of the countries in the region make the markets in complete volatility. The countries in the GCC benefited from the high oil prices diversifying their economies and this pave the way for these economies to look beyond the hydro carbon exports and its dependency. Qatar amongst all the GCC countries does well in this front and the Qatar Exchange, the market barometer of the economy is the only stock exchange in the region which is in the positive territory while others are faring negatively. “
Mr. Seetharaman also touched upon the Currency Market scenario and how the ongoing changes in the currency market. He informed the policy makers especially the G-20 are converging with their ideas and ways to bring back the global financial market's stability. He highlighted that with this highly changing markets whether it is Stock / Forex / Commodities markets, the challenge before the institutions be it a bank or company, is to create value and income distribution to all its stake holders. He pointed out that the changes will create new values and the financial markets will be redefined as also the financial services. The institutions have to be customer centric now and not product centric as in the past with focus on cost reduction.
Mr. Seetharaman highlighted that the Financial market reform understood in today’s conventional terms is focused on how best to ensure the ‘resilience’ of financial markets, to prevent them imploding once more and causing economic havoc and social misery. Whilst clearly important, this lens ignores the underlying imperative to secure the resilience of the global economy in the light of natural resource and climate challenges and the destabilizing effects of endemic inequality and poverty. Overcoming short-termism is a pre-condition for progress as the ingredients of a sustainable economy will count for more when investors consider the long-term performance of prospective investments. Due to the recent financial crunch on the global platform, a majority of the investors from all over the world have realized the need for sustainable finance. Green investments are what the investors are looking to buy. This demand has prompted several companies to start up new green projects to keep at par with this growing demand. ‘Green Revolution is solution for global financial stability’ he said.
Mr. Seetharaman show cased that the changes create opportunities and the people invent strong economies. He pointed out that whether a bank is local or private it is global under the current circumstances and the quality of it product and services matter as the changes are real and imminent. Institutions have to devise its own model to contain cost and to have complete risk integration in a world which is dynamic with connectivity in real order.
Mr. Seetharaman said that the Qatar Credit default Swap rate had gone up due to global tensions. The changes happening in the global arena will create a new world order and Qatar has kept its ground well with its Qatar National Vision 2030 and Qatar National Development Strategy for its continued growth and expansion in the non-hydrocarbon sector in order to have economic prosperity for its subjects.
Eminent speaker Mr. Amit Juneja, Head of Commodities Business Middle East, J P Morgan Chase gave an in sight into the Commodities Markets especially the Black Gold and Yellow Gold and the risks associated in dealing with the commodities and the mitigants which the corporates who deal with such commodities have to be taken care in restraining the cost in the use of these commodities in their business.
Mr. Dag Reichel, Head of Wholesale Banking, Doha Bank addressed the audience about managing complexity and how to create value for global enterprises in a dynamic environment.
Mr. Chris Fellner, Head – International Banking welcomed the gathering and the speakers panel and also proposed the vote of thanks
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