Wissam Fattouh, general secretary of Union of Arab Banks, said the latest statistics of International Finance Corporation assured that the number of the SMEs officially registered in both of Middle East region and North Africa is between 1.9 and 2.3 million ones, representing 21% of granted loans. While the rate of bank accounts reach 74%. This means the banks administrate the funds of these projects but they don't finance them; referring to the funding gap is between $ 110 to 140 billion. He emphasized that the banks should commit to the principles of governance and transparency, moreover, bolstering the SMEs. Fattouh underscored that the Union of Arab Banks work during the current period on enhancing the banks' state in order to face the unrest in Arab spring countries. Number of memorandums of understanding will be signed between UAB and international organizations and American and European banks association. UAB works on enhancing the relations with Arab Monetary Fund (AMF) as well as IMF. The bank succeeded to communicate with the international regulatory agencies such like Basel and FATF organization. During his speech to the Arab forum entitled “SMEs: The Arab Strategic Economic Choice", he elaborated that Egypt during last year influenced by the revolution which led to increasing the inflation rates to reach 11.8% instead of 10.7% during 2010, and slashing the growth rates from 5.15% to reach 1.2% at the end of 2011. Fattouh added that the repercussions the country witnessed influenced on the rates of direct investment. The state's budget deficit also increased to reach 19.2% instead 2.2% during the last fiscal year. He said the negative influence included all the different economic sectors, while other sectors haven't influenced like the oil sector and Suez Canal incomes. International Monetary Fund expects the Egyptian market's growth rates to increase to 1.75%, up from 1.2% as registered at the end of 2011. Inflation rate is expected to decline to 11% and budget's deficit decreased to 9% in the estimated budget, Fattouh informed. Gulf banks' growth rates in 2011 exceeded that of 2010, except Bahrain's banks that posted a negative growth rate of more than 10%. Saudi banks posted a 9.1% growth in 2011, up from 6.2% in 2010. The unrest some Arab countries have witnessed affected negatively growth rates. Egypt posted a negative rate of 3.6%. However, Tunisia registered a growth increase of 6%, up from 4% in 2010. Arab bank's assets reached US$ 2.6 trillion, deposits registered US$ 1.5 trillion and loans stood at US$ 1.3 trillion at the end of 2011. In addition, the capital of banks working in Arab countries rose by 6%. The assets of banks working in Egypt registered EGP 1.31 trillion (=US$ 217 million) in 2011Deposits with Egyptian banks registered EGP 981 billion, loans rose to EGP 490 billion and capital grew by 17%. The volume of finances offered by Arab banks to SMEs is less than 8% of the total volume of loans that reached US$ 1.5 trillion, according to statistical study done by Union of Arab Banks in collaboration with World Bank about 139 banks in 16 Arab countries.
