GCC ‘single currency to further strengthen economic stability’

A senior foreign exchange analyst attending the 4th Saudi Money Expo and Conference 2013 has predicted a rise in global gold prices in 2014. Peter Rosenstreich, chief FX Analyst and associate director of Swissquote Bank SA, speaking to Arab News on the sidelines of the conference yesterday, said: “Currently the relationship between inflation and gold prices is no longer there. Therefore, without that connection people really don’t have a reason to trade gold. If we start seeing global inflation rising at the end of 2013, we will tell investors to start buying gold again to offset inflation, which would make gold prices to rise.” Saudi businessmen should take extra precautions while investing funds to avoid financial losses, Prince Saif Al-Islam bin Saud bin Abdulaziz, said while inaugurating the 4th Saudi Money Expo and Conference 2013 at the Faisaliah Hotel in Riyadh yesterday. The expo is organized by Stayconnected in collaboration with Alawsat for Economic Consultancy for Prince Dr. Saif Al-Islam bin Saud bin Abdulaziz in partnership with Alpari UK. “The main objective of the two-day expo is to strengthen the country’s market analysis and trading (national and international) policies as Saudi Arabia has already been ranked as a top player in the investment sector, with almost 28 percent investment in currency markets, oil and gold,” the prince said. He pointed out that the event is in line with the new industry report released by Fitch Rating Agency, one of the largest international rating agencies, which claimed that the foolproof fiscal and economic policies followed by the Kingdom, under Custodian of the Two Holy Mosques King Abdullah’s directions, have led to an elevation of Kingdom’s rating to AA. The prince pointed out that the program of the forum is designed to inform the participants about the risks involved in investments. He stressed that inaccurate information provided by some organizations could mislead the investors to incur heavy financial losses in their ventures. Referring to the economic crisis in Cyprus, he said that although some banks suffered severely, Arab banks stood the test of time due to proper planning. He added that the proposed GCC single currency will further strengthen the economic stability of the region since such a uniform currency will ensure stability of prices in all commodities within the region. With the strong backing of consistent success of the last three editions of the expo, the event began with the participation of a number of major Gulf companies, financial and economic institutions from 10 European countries, including the United States, and almost 3,000 investors from the Kingdom, who also attended the free training courses offered by the field experts. The exhibition brought together some of the leading minds in banking and FX trading, shedding light on the present state of FX trading in the world and some of the most widely used trading strategies by experts. Additionally, it featured the most recent technologies, products, security and safety services that are becoming available in the online trading industry. Walid Ead, director of Stayconnected, said the expo rendered a great platform and opportunity to the participants to meet the top officials of leading foreign companies and get an enriching experience through discussions about the latest trading technologies. “The expo brings to light crucial and sensitive issues such as latest trends in the global market, especially in the Kingdom, which promises a bright future of investment and trading sector. Consequently, the expo has bestowed a golden chance to the participants to interact directly with the world’s leading analysts and experts,” Ead added. Alpari UK, a leading British company, gave an insight into the techniques used to interpret financial market indicators. The event also featured a panel discussion wherein top officials discussed the future of Online Currency Trade business. It also provided free educational sessions designed specifically to educate the young investors about day-to-day market fluctuations. The Kingdom with a population as of July 2010 estimated to be 25,731,776 is the richest country in the Middle East. According to Bloomberg Business Week, it has around 170,000 millionaires and is ranked 19 among countries with the most millionaires in 2010. Over 35 percent of Middle East FX retail traders are living in the Kingdom and invest an average of $ 35,000 in FX trading over the course of their trading experience. The expo is co-sponsored by Amana Capital (strategic sponsor), FX Solutions (official sponsor), FXDD (main sponsor), Swissquote Bank (banking partner), Arab Financial Brokers (diamond sponsor) and ADSS (platinum sponsor).