Intl banking summit in Istanbul stresses growing ties between Turkey, Arab World

This week's two-day International Arab Banking Summit in Istanbul will help strengthen financial relations between Turkey and the Arab world, said Deputy Prime Minister Ali Babacan yesterday. Addressing the opening of the summit, Babacan said Turkey and the Arab world have a great potential to boost economic ties, citing as evidence how Turkey's trade with Arab countries climbed from $7 billion in 2002 to $37 billion in 2008. Babacan said 1.5 million Arab tourists visit Turkey annually, while over 2,000 Arab companies have investments in the country. He said the fact that the Union of Arab Banks, which has 400 members with total assets over $2 trillion, organized the event in Istanbul illustrates Arab investors' interest in the Turkish market. Pointing to Ankara's action plan to turn Istanbul into a global financial hub, Babacan said the country boasts a crisis-proof banking sector. "Turkey was the only Organization for Economic Cooperation and Development (OECD) member that didn't have to intervene in its banking industry during the 2009 global credit crunch," he said. He stated that thanks to Ankara's sound economic policies, Turkish financial markets have a lower risk of failure compared to a number of EU countries. Also addressing the audience, Union of Arab Banks Chairman Adnan Ahmad Youssef said several Saudi banks as well as banks from Qatar and the United Arab Emirates are interested in investing in the Turkish market. Youssef called relations between Turkish and Arab banks "very good," adding that they expect these ties to get better still.