Union of Chambers and Commodity Exchanges of Turkey

The 30^th Board Meeting of the Islamic Chamber of Commerce, Industry and Agriculture took place in Tunisia. Attending the meeting along with the representatives of the 57 member states of the Islamic Chamber, TOBB President M. Rifat Hisarcıklıoğlu was joined by TOBB board Members Necdet Özer and Selçuk Öztürk and Turkey’s Ambassador to Tunisia Ömer Gücük.

Speaking at the opening of the meeting, Hisarcıklıoğlu relayed his views on the relation between the Islamic countries and the world economy in regards to the development of financial and trade affairs. Stating that the role of Islamic countries in the global economy cannot be ignored, Hisarcıklıoğlu said, “We stand at the center of the region which shapes global trade routes and where global policy is generated. We hold the sustenance of the world economy, energy. As Islamic countries, tourism is a very significant power for us. This power increases with each year.

We have a great stake in construction. We are also making very important investments in the industrialization field. Many Islamic countries have prioritized industrialization. Almost every sector is integrated into the global system. We are an important part of the global economic balance. That is why we must grasp the developments in the global economy well and prepare ourselves well for these developments.”

- World economy leaning towards revitalization

Stating that the coming term will be more difficult that the one we’ve left behind, Hisarcıklıoğlu said, “Because we are entering a brand new term. Of course there is a lean towards revitalization in the global economy.

The effects of the global financial crisis which began in 2008 have lessened. After the USA, European economy is showing signs of recovery. This development will effect all of us positively.”

- “The changes which await us”

Stating that the first of the changes which await us in this process is in the field of finances, Hisarcıklıoğlu said, “Along with the austerity measures enacted following the global financial crisis, the liquidity of capital has slowed down in the world. As developed countries strengthen their macroeconomic balances, flow of currency to developing countries will decrease. In the coming term, financial resources will no longer be in abundance.”

- The route of global trade

Stating that the second fundamental change will be seen in the route of the global trade, Hisarcıklıoğlu said that the world would be experiencing a first. “For the first time in history, the total production of developing countries will surpass that of developed countries. Both consumption and production potential will pass to developing countries. The economic center of the world is sliding from the west towards the east and will continue to do so. The USA, seeing this, is attempting to restructure the world economy into two blocks with the Transpacific Trade Partnership (TTP) and the Transatlantic Trade and Investment Partnership (TTIP).”

Stating that the preferential trade system has not been able to be implemented among the Islamic countries, the TOBB President said, “We keep obstructing ourselves.

There is no compatibility between our customs procedures. The infrastructures of our customs gates are not compatible. And the worst part is that we require visas to travel among each other.”

- Changes in the energy sector

Stating that the third major change in the global economy will take place in the energy sector, Hisarcıklıoğlu said, “The USA is blazing a new trail in the energy sector with shale gas.” Pointing out the changes the use of cheap shale gas will bring to the energy sector, Hisarcıklıoğlu stated that this will lower production costs in the west, giving the west the ability to compete in the energy sector again.