Upon an invitation by the National Center for Middle East Studies Abu-Ghazaleh Speaks about the Global Economic Crisis

CAIRO - January 6, 2009 , Talal Abu-Ghazaleh, chairman and CEO of the Talal Abu-Ghazaleh Organization (TAG-Org) was the main speaker at the ?Global Economic Crisis between the Present and the Future? seminar organized by the Cairo-based National Center for Middle East Studies on January 4, 2009.

In the seminar moderated by Mustafa El-Fiki, chairman of the foreign affairs committee at the Peoples Assembly, Abu-Ghazaleh commenced his presentation by stating that this crisis, regardless of the names it is given, is a historic and strategic transformation of all the global systems and policies, saying that it will last for at least ten years.

?The world is moving towards the establishment of ?reality? markets, where it will expand from the Arab region to China, India, Iran and Turkey,? he stated, adding that ?new economic lobbies and partnerships will emerge in addition to many other changing powers in the global economic system, where the United States will witness a change from liberal capitalism to state capitalism.?

Moreover, Abu-Ghazaleh clarified that this change will lead to the plurality of the global currencies, and the US dollar will no longer be the only currency.

?Various other global financial centers will emerge, along with political centers, and the US will be just one of the countries to lead one of these centers,? he explained.

In respect of the effect of this crisis on the economy and productivity in the coming stage, Abu-Ghazaleh stressed that the United States will encounter a dramatic transformation in financial institutions and the global and regional sovereign funds.

?Global institutions will witness major reforms; however, the World Trade Organization will no longer be active, especially now that it is going through the clinical death phase,? he added.

While concerning the effect of the global economic crisis on the Arab countries, Abu-Ghazaleh stated, ?It will vary according to each country?s involvement with and its connection to the international markets.?

He also warned that the world will be moving from a recession phase to a depression due to the continuous low demand of goods and services.

According to Abu-Ghazaleh, the most harm will be inflicted on Israel, which will witness a major economic crisis due to the war Israel is launching against Gaza, which costs the Israelis US$1 million on daily basis, in addition to the losses that their economy will face.

However, Abu-Ghazaleh remained optimistic, saying that the Arab nations have a unique historical opportunity to flourish in the face of adversity.