INTERNATIONAL. Dubai International Financial Centre Chief Economist Nasser Saidi said the Group of Eight (G-8) is an “obsolete” forum and called for a greater role for Gulf countries in global decision-making.
“The GCC should have strengthened representation on the Financial Stability Board (FSB),” Saidi said at a conference in London today. Gulf Cooperation Countries should translate financial strength “into a more prominent role on the world stage,” he said.
The Group of 20 has overshadowed the G-8 in the revamp of global regulation following the worst financial crisis since the Great Depression. The FSB, comprised of central bankers, finance ministers and regulators from G-20 countries, has been elevated to a global supervisory role with more members from countries including China, India and Saudi Arabia.
At the London summit in April, the FSB gained new powers to outline global financial regulations and took on an oversight role, together with the International Monetary Fund, to look at market risks. G-8 leaders will meet in Italy in July.
Saidi today outlined a four-pronged plan to “redefine and redesign” the relationship between the GCC and London, including a louder voice in decision-making for Gulf countries.
He repeated calls for a development and restructuring bank for the Middle East, which he said would aid geo-political stability in the region.
Saidi also called for more sophisticated debt markets that can trade both conventional instruments and those that are compliant with Islamic law, which prohibits the use of interest payments. Sharia-compliant products should be integrated into the western financial system, he said.