Doha, October 13 (QNA) - Secretary-General of the Union of Arab Banks Dr. Wissam Fattouh stressed the importance of Arab financial institutions drawing on the experience of Qatari banks, whose expanding regional and international presence highlights opportunities to diversify investments, strengthen cross-border cooperation and enhance competitiveness in a rapidly changing global economy.

Speaking to Qatar News Agency (QNA), Fattouh highlighted the extensive international reach of Qatari banks and their investments beyond the domestic market, saying their experience could help other Arab institutions strengthen investment management, develop their banking operations and navigate diverse markets.

He stressed that Arab banks could draw broader lessons from Qatar's approach to expanding internationally, diversifying investments and capitalizing on opportunities across regional and global markets.

Fattouh said Qatari banks' extensive presence across regional and international markets offers valuable lessons for Arab institutions seeking to expand beyond their traditional markets. Exposure to diverse markets can also help banks better assess local conditions and risks, refine their business strategies and adapt to changing economic environments.

Fattouh cautioned, however, that successful banking models cannot be replicated wholesale across the region. Banks must assess each market's economic and regulatory environment and adapt proven practices to local conditions.

Fattouh said learning from Qatar's experience and other successful Gulf and Arab banking models could deepen financial cooperation, unlock investment opportunities and strengthen Arab banks’ ability to adapt to global economic and technological shifts.

Turning to the Gulf banking sector, Fattouh said Qatar's experience should be viewed alongside those of other Gulf countries, whose financial institutions bring diverse expertise and maintain investments across regional and international markets.

He described Gulf banks as a key pillar of the Arab banking sector, noting that several have established a strong presence in international markets and pursued diversified investment strategies. Their cross-border operations provide a platform for deeper partnerships and knowledge-sharing in areas ranging from business management and financing to international expansion and financial services development.

Fattouh said stronger cooperation among Gulf banks could expand investment opportunities across the Arab world and deepen financial integration, enabling institutions to combine their expertise in support of regional economic growth.

He stressed that Arab banking development should draw on a range of successful experiences, citing the progress made by the banking sectors of Jordan and Morocco, as well as Egypt's substantial banking base and significant investments.

The diversity of these banking models creates opportunities to exchange proven practices, improve financial services, expand investment activities and strengthen institutional efficiency. Fattouh said closer Arab banking cooperation could help bring this expertise together, enhancing the sector's competitiveness and its ability to respond to rapid changes in global markets.

He added that differences in national markets should be seen as an opportunity for mutual learning, allowing banks to adapt successful practices to local economic and regulatory conditions. Stronger links among financial institutions could also foster new investment partnerships and advance financial integration across the Arab world.

Beyond regional cooperation, Fattouh highlighted the role of technology in shaping the future of banking, saying artificial intelligence offers significant opportunities to improve efficiency, analyze data and strengthen fraud detection and the monitoring of suspicious transactions.

He cautioned against relying solely on AI-generated results, stressing that their reliability depends on accurate, complete data. Human oversight remains essential to verify results and ensure AI supports, rather than replaces, professional judgment. He also called on banks to adopt solutions tailored to their needs and carefully assess the risks of new technologies.

Turning to regulatory compliance, Fattouh stressed that even unintentional violations can expose banks to fines and reputational damage. He highlighted the importance of complying with domestic and international regulations, strengthening internal controls and regularly reviewing procedures.

He added that expanding cross-border operations and advances in financial technology make robust risk management and compliance systems increasingly important to help banks adapt to change while avoiding regulatory breaches and penalties.

Fattouh also highlighted opportunities for Arab banks to support Syria's economic recovery and reconstruction, identifying potential investment and financing opportunities in tourism, agriculture, industry, technology, financial services and payment systems.

He said Arab banks could help finance projects and deepen cooperation with Syrian financial institutions, contributing to reconstruction and broader economic recovery.

Realizing these opportunities, Fattouh said, would require comprehensive economic reforms, a more favorable investment climate, and greater confidence in the financial sector, noting that successful banking cooperation hinges on a clear commitment to economic openness and stronger ties with the Arab world.

Fattouh concluded that differences in economic development across Arab countries should not be a barrier to cooperation. Rather, he said, Arab banks could leverage their collective expertise and available investment resources to support economies requiring financing and reconstruction, while advancing financial integration across the region. (QNA)