The Arab banking industry faces unprecedented challenges that start with the direct losses suffered by some banks as a result of the international financial crisis as well as losses sustained by bank clients on domestic and international markets and grow to include the economic recession and its impact on project activity and profitability, and the expected major changes in the structure of the legal and regulatory environment governing banking and investment activities.

These and other pressing topics and issues of the hour were at the core of the Kuwait Financial Forum held under the patronage of the Prime Minister of the State of Kuwait H.H. Sheikh Nasser Al-Mohammad Al-Ahmad Al-Jaber Al-Sabah on November 1 and 2, 2009 at Kuwait Sheraton Hotel. The conference was organized by Al-Iktissad Wal-Aamal Group in cooperation with the Kuwait Central Bank and the Kuwait Bank Association.

Given its importance and timing, the forum attracted the participation of heads and executive managers of most banks and financial institutions in the Arab world, as well international banks active in the region, Islamic banks, central bank governors, economists and banking experts. A number of Arab ministers and top government officials are also expected to attend.

Main topics on the agenda of the forum included:

• Rebuilding for the future in light of the international financial crisis.
• The Arab economies in the post-crisis phase.
• The new regulatory paradigm and the role of central banks.
• Challenges facing Arab banks from the slowdown in economic growth, the liquidity shortage, and the decline in asset values.
• The financing gap and its expected impact on future project and business activity in the region.
• Global and regional investment trends, and lessons to be learned from the large losses sustained by sovereign funds.

The forum also featured workshops on the latest IT applications in banking services, payment systems and risk management.