Addressing the inaugural ceremony, Arab League Secretary-General Amr Moussa called here Friday for electing a new Lebanese president as early as possible.

Moussa said all Arabs were longing to visit Lebanon and to invest there, but what should be done for the time being was to put the Arab initiative in place.

He considered that a recent invitation by Lebanese parliament speaker Nabih Berri for dialogue among all Lebanese rivals as a very significant opportunity that can not be rejected.

"I have done all what I could to trigger a move and to achieve progress. But, I do not view the Lebanese crisis as insoluble," he said.

But, he sounded the alarm that if the current presidential vacuum in Lebanon remained unfilled, there could be serious consequences in Lebanon and the region at large.

"In spite of everything, I see that all Arabs are yarning for visiting Lebanon, investing there and even enjoying its climate, convenience and entertainment. What is required now is to go ahead with the implementation of the Arab initiative," he said.

Pointing to full confidence in the future of Lebanon, Moussa called on the Arab world to swiftly cope with globalization, but to be cautious about relevant risks. He also urged firm and unwavering steps towards democracy.

He voiced hope that the planned economic and social development summit due to be held in Kuwait in January 2009 would contribute to drawing a favorable roadmap aiming to achieve all-out development in Arab societies.

For his part, Lebanese Finance Minister Jihad Azour, representing Prime Minister Fouad Seniora, said the Lebanese government was not given appropriate circumstances and potential to go ahead with its economic drive.

"Rather, it had to lead the reform train on a railway lettered with political and security bumps and bends," he said.

However, the government has improved 2007 economic indexes, chiefly a seven-percent drop in indebtedness and a 15-percent dip in budget deficit, the minister said.

Addressing the gathering, Qatari Deputy Prime Minister and Minister of Energy and Industry Abdullah bin Hamad al-Aittiya stressed that a state should turn from the concept of all-out control over national economy into the position of a supportive partner who can help establish an economy driven by the private sector with a view to contributing to economic development and prosperity.

He also called for giving a top priority to educational revamp and vocational training in the Arab world, which is now in dire need to boost the level of its production.

Al-Attiya added that it was also very important for Arab countries to seek hard to attract foreign investments.

Following the inaugural ceremony, a session was held under the chairmanship of former Kuwaiti finance minister Bader al-Humaidhi under the rubric: "Look at Post-Oil Boom Stage: What Are Economic Priorities for Coming Stage in Arab Countries".

Al-Humaidhi said annual oil revenues in Gulf countries are estimated at USD 700 million, and average pay rises hit 50 percent.

He also estimated foreign investments in Saudi Arabia last year at USD 22 billion, USD 18 billion in the United Arab Emirates (UAE), USD 4 billion in Qatar, USD 2 billion in Oman, USD 2 billion Bahrain and only USD 100 million Kuwait.

Inflation rates in Saudi Arabia and Kuwait hit 9.50 percent, but 13 and 14 percent in other Gulf nations, he said.

The 2008 forum comes at a time of an unprecedented change in the Arab world where a combination of rapidly growing oil surpluses, economic reform and liberalization, and massive expenditures on new development projects have boosted economic growth and the process of structural change in economies across the region, while establishing Arab companies and investments as major players on the international market.

But, many challenges lie ahead including the growing inflationary pressures, the dollar crisis and its impact on the purchasing power of Arab oil revenues and currencies, and present political and security threats in the region.

In light of all that, the 2008 Arab Economic Forum will discuss continuing oil boom and its implications for the future Arab economy, changing investment environment in the Arab world and its competitiveness in attracting foreign investments, the weak dollar, the ideal peg for Arab currencies, the threat of inflation and policy options to control it, mega real estate projects and their impact on the real estate market in the region, and others.

The two-day Arab Economic Forum 2008 is organized by Al Iktissad Wal Aamal Group in cooperation with the Central Bank of Lebanon, the Association of Banks in Lebanon, and the Institute of International Finance (IFC). -Kuna