THE ROLE OF ARAB FINANCIAL MARKETS IN FINANCING FOREIGN TRADE - A CASE STUDY OF SOME ARAB COUNTRIES -

Abstract

ABSTRACT : This study aims to enlighten the degree of contribution of Arab financial markets in financing foreign trade. A case study of some Arab countries. Financial markets are considered as a financing system that mobilizes savings and directs them towards investment opportunities and an important factor in attracting foreign and local capitals through the use of different values and financial tools, and from here emerged the importance of Arab financial markets as one of the most important mechanisms by which is provided funding sources for all economic sectors, and of course, for the foreign trade sector. As the foreign trade financing is considered as one of the most important requirement of the Arab foreign trade development, for its role in enhancing productive capacities and competitiveness of Arab producers and exporters, which contribute to providing new opportunities to enter international markets and to support the investment environment and development objectives of the Arab economy. In this study, we dealt with the theoretical aspects of financial markets, in addition to monitoring the developments and the performance of Arab financial markets in order to conclude to the most important obstacles that stand in front of these markets and to provide some solutions to develop and activate the Arab financial markets. We exposed as well the reality of Arab foreign trade, and in the last, we focused on the role of Arab financial markets in financing financial institutions specialized in the development of Arab trade exchanges. These institutions allocated a large part of their concerns to support and to develop trade exchanges of Arab countries and to link them to the Arab financial markets, taking, for that purpose, a number of means and many programs dealing with financing foreign trade and encouraging the movement of capitals between the Arab countries. The results showed that financial investments in Arab financial markets contribute to a large part in the incomes of the foreign trade financing program. The investment of national agencies for the program in the Arab countries in the Arab financial markets provides the funding sources for this foreign trade sector. The study also showed that the Arab Monetary Fund and the Arab Trade Financing Program, the Saudi Programmed of Exports Finance as well as the Dubai Foundation for the development of export development, are development financial institutions with non-profit, and that turned their annual benefits to reserves and reinvest their returns in financial markets in order to finance the applying of the foreign trade activities.