1. “Sustainable Capital Markets Development in the Gulf, Middle East and North Africa” Informal Roundtable London, July 24th Organised in cooperation with the Arab Financial Forum and Barclay’s Capital MENA-OECD Investment Programme

2. Background on the MENA-OECD Investment Programme The MENA-OECD Investment Programme was launched in 2004 as part of the Initiative on Governance and Investment for Development developed by the OECD upon request from states in the region The Progamme’s key objective is to mobilise private investment as a driving force for economic growth and employment in the MENA region The Investment Programme is composed of 5 working groups: 1. investment policies; 2. investment promotion agencies and business associations; 3. tax framework for investment; 4. policies for financial sector and enterprise development; 5. corporate governance The Programme works with 18 countries in the MENA region on both regional and national levels A Ministerial Meeting to mark the end of the first year of the Programme was held in February in Jordan - the declaration “Attracting Investment to MENA Countries – Common Principles and Good Practice” was adopted and Chairmanship passed to Egypt

3. MENA-OECD Investment Programme Financial Sector Work of the Programme The financial sector development work of the Programme, including issues such as capital markets development, bond markets development, banking sector development and privatisation, and SME financing is addressed as part of the Working Group 4 of the Programme The Working Group 4 is currently Chaired by the Kingdom of Saudi Arabia and the United Kingdom Work continues on a regional level on specific cross-cutting themes (i.e. Venture Capital Policy Brief, study on financing innovative SMEs) The Enterprise Financing network launched in May in Bahrain seeks to address the financing gaps in the MENA region and is initiating a research study on the topic Efforts are also underway to address the country-specific challenges as part of the National Investment Reform Workshops Private sector input supports activities of this working group

4. MENA-OECD Investment Programme Context and Content of the Roundtable Earlier meetings of Working Group 4 gave mandate to the Programme to conduct a set of workshops, including on structure and regulation of the securities market and on the integration of capital markets in MENA countries At the last meeting of the Working Group preceding the Ministerial, participants have asked that the Programme focus on capital market development and SME financing MENA capital markets were not growing strongly until the oil boom and repatriation of capital in the region – in 2005 some bourses have grown 100% Recent turmoil in MENA capital markets and political developments have significantly impacted on the stability and growth of MENA capital markets - differential impact, but repercussions felt throughout the region Initiatives introduced to ameliorate the impact of stock market corrections Purpose of the roundtable to identify key challenges that can be integrated into work of the Programme and present OECD competencies

5. MENA-OECD Investment Programme For more information about the MENA-OECD Investment Programme, please refer to www.oecd.org/mena/investmentwww.oecd.org/mena/investment