Arab Asian World Looks At Renewable Future

At the 3rd Annual Summit of the Arab Asian Financial Forum, 500 participants listened to government bodies and the private sector under the theme ‘From Energy to Knowledge’

A change of mentality is gripping oil producing countries. With the price of oil trading at around USD 140 a barrel and dwindling demand nowhere in sight, economists attending the 3rd Annual Summit of the Arab Asian Financial Forum (AAFF) are predicting that renewable energy is more likely to complement rather than compete with oil. This is good news for countries such as Indonesia, where the AAFF summit was held, that have become net importers of oil. It is also good news for countries such as Saudi Arabia that are inclined to burn large amounts of the precious fossil fuels in order to run water desalinating plants and can benefit from renewable energy.
This year’s summit of the Arab Asian Financial Forum, which was attended by 500 participants, saw a welcome address by H.E. Sofyan Djalil, Minister of Indonesian State Enterprises and an opening address by H.E. Dr. Alwi Abdurrahman Shihab, Indonesian President’s Envoy to the Middle East. “Over the past few years, several Saudi, Kuwaiti and UAE companies have made sound investments in Indonesia with special emphasis on tourism. 3 billion US dollars worth of investments are coming in from the Middle East,” explained Dr. Shihab.
Keynote Speeches were delivered by Riawan Amin, President Director, Bank Moamalat, Director IIFM, Director CIBAFI, Adnan Ahmed Yousif, President & Chief Executive of Albaraka Banking Group B.S.C (ABG), and Ahmed Al Suwaidi on behalf of Hussein Mohammed Almeeza, Vice Chairman of Al Salam Bank Bahrain and CEO and Managing Director of Dubai’s Islamic Insurance and Re-Insurance Company.
Luring investors into alternative energy, Dr. Sugiharto Harsoprayitno, Director - Geothermal Enterprises Supervision and Groundwater Management, talked about geothermal investment opportunities in Indonesia. On the other hand, Dr.-Ing. Evita H. Legowo, Assistant to Minister of Energy and Mineral Resources for HR and Technology, discussed energy policy and investment, and had to answer questions by the AAFF host about Indonesia’s withdrawal from OPEC.
Other notable speakers included Ahmed Mohammed Al-ghannam, Director General Saudi Export Program -Saudi Fund For Development, Dr. Ghanim Al Hammadi, CEO of National Leasing Holding Co., representatives from Bank Indonesia, Abdul Azeez Hassoun Ali, Chairman- Iraqi Private Banks League, among others.
The event was sponsored by Al Baraka Banking Group (Platinum Sponsor), International Investors Group (Gold Sponsor), Trust International Insurance Company, (Silver Sponsor), Intaj (Silver Sponsor), Al Salam Bank (Bronze Sponsor), AMAN Islamic Insurance and Reinsurance Company (Bronze Sponsor), Al Tadhamon International Islamic Bank (Bronze Sponsor), Arbah Capital (Exhibit Booth), Qatar General Insurance and Reinsurance Co. (Lanyard Sponsor) and Credit Libanais Bank (Delegate Bag Sponsor).
“We believe that an entry into the Indonesian market at this juncture would be a right fit for ABG as it offers a chance to leverage the strong brand name of Al Baraka in a booming economy with the largest Muslim population in the world and is well supported by a reformist government that has indicated its willingness to encourage and support Islamic Banking,” explained Adnan Yousif in his speech.

On the economic front, President Yudhoyono moved quickly to implement a "pro-growth, pro-poor, pro-employment" economic program. He appointed a respected group of economic ministers who announced a "100-Day Agenda" of short-term policy actions designed to energize the bureaucracy. President Yudhoyono also announced an ambitious anti-corruption plan in December 2004.
The Indonesian government adopts a series of laws to cut the red tape and make the life of investors easier. Arab investors desperately want to diversify their investments. “Arab investors want to know all about the investment laws and tax incentives in Indonesia. But the Indonesian embassies need to be more active in this regard,” a senior Arab official said.
The subprime credit crunches in the US have affected many Gulf firms that have presence in the States. For further details, please visit www.cedarhills.com
“For this reason, Gulf investors feel that Indonesia is the right place to put the money,” another company executive said.
“Tourist operators expect more than 300,000 Arab tourists to visit the islands of Indonesia in 2008 thanks to the extensive promotion TV campaigns. They added that investors are planning to spend $3 billion in the construction of hotels and beach resorts in at least 12 islands in Indonesia,” says an AAFF representative.
The 3rd Annual Summit of the Arab Asian Financial Forum has been covered by the most prestigious members of the regional and international press, including the likes of CNBC Arabia, Al-Jazeera, Jeevan/Khaleej TV and many others.