The Australian Arab Business Council hosted an insightful event, The State of Play with Mohamed Hage OAM, on October 9 at La Castelle in Bankstown. The gathering opened with remarks by George Bousamra, Assistant Secretary of the Council, followed by a welcome address from Radwan Hamden, President of the Council. In his speech, Hamden highlighted the mission of the Australian Arab Business Council and expressed concern over the current turmoil in the Middle East.
The keynote address of the evening was delivered by Mohamed Hage OAM, National President of the Australia Arab Chamber of Commerce and Industry. Hage provided an in-depth analysis of the Australian business landscape, touching on critical topics such as the rising cost of doing business, key economic trends, and the impact of global market fluctuations. He also explored opportunities across the UAE and MENA regions, placing Australia’s economic standing in an international context.
Economic Growth and Challenges in Australia
Hage began his address by highlighting the challenging journey many businesses face, noting that excellence, loyalty, and entrepreneurship are key elements of success. He then shifted to a more analytical perspective on the Australian economy, revealing that it has grown by only 1%—its lowest rate since 1990-1991. “In the last quarter, which was the June quarter, we’ve only grown 0.2%,” Hage remarked, underscoring the sluggish economic performance.
He stressed that without the millions of migrants entering Australia, the country would likely have experienced a recession. “In the last 18 months, we’ve been in a technical recession,” he noted. Hage elaborated on how limited access to capital and high interest rates have exacerbated economic challenges, making it more difficult for businesses to thrive.
Inflation, Property Market, and Global Trade Insights
Hage provided a comprehensive view of the inflation situation, which has slightly decreased to 2.7% from a high of 3.6%. He explained that “sticky inflation,” driven by prolonged increases in costs such as healthcare and rent, continues to weigh heavily on the economy. The property and rental markets, Hage observed, have remained strong, with regional cities such as Perth, Adelaide, and Brisbane outperforming traditional economic centres like Sydney and Melbourne.
“The building approval process, access to capital, shortage of building materials, and labour shortages are all contributing to the crisis in the property market,” Hage explained. He called for a focus on addressing these systemic issues and for the government to prioritise social housing.
Discussing interest rates, Hage emphasised the importance of maintaining a delicate balance to prevent inflation from spiralling out of control. He warned of potential disruptions in global oil markets, particularly if geopolitical tensions escalate in the Middle East, which could lead to dramatic increases in oil prices.
Performance of Various Sectors and Future Economic Prospects
Hage highlighted the uneven performance of different sectors in the Australian economy. While the energy sector has seen growth, the retail sector is still struggling to recover. He also discussed the global trade landscape, noting that China remains a critical trading partner for many countries, including those in the GCC region. “China has the biggest middle class in the world,” he pointed out, adding that a thriving Chinese economy is crucial for global stability.
In contrast, Hage praised the Middle Eastern economies, particularly Saudi Arabia and the UAE, for their rapid growth. However, he expressed concerns about the potential negative impact of volatile oil prices on the region.
The Way Forward for Australian Business
Reflecting on Australia’s trade relationships in the Middle East, Hage noted an increase in two-way trade from $18 billion in 2019 to $26 billion in 2023. While this growth is promising, he pointed out that it still only accounts for a small percentage of Australia’s overall trade. He urged the need for more direct flights to the region to facilitate business and tourism.
Hage also called for greater innovation and entrepreneurship within Australia. “The entrepreneurship level has declined in Australia,” he said. “We are losing many industries, and our education system is no longer within the top 30 globally.” He stressed the need for vocational training for Australia’s youth and the importance of enhancing the Australian brand on the world stage.
Networking and Insights from Attendees
The event also provided an opportunity for attendees to share their perspectives and engage in meaningful discussions. Sam Darvish from Civic Lawyers expressed his interest in gaining a better understanding of the Australian economic outlook. John Maait, a lawyer and founding member of the Australian Arab Business Council (formerly known as the Australian Arab Business Network), highlighted his long-standing commitment to the Council.
Dr. Hala and Justin from Soul Aura Chiropractic attended with the goal of gaining insights into the current economic climate and its impact on healthcare services. “With today’s inflation and the economic climate, I’m noticing that people are cutting back on a lot of expenses, and health is one of them,” Dr. Hala commented.
Conclusion
Overall, the event was a valuable platform for attendees to gain insights from Mohamed Hage OAM on the challenges and opportunities in the Australian economy and beyond. It also provided a chance to network and connect with fellow Council members and business leaders. The Australian Arab Business Council continues to play a crucial role in fostering economic dialogue and promoting growth within the community.
