Economies across the Middle East North Africa (MENA) region entered the COVID-19 crisis in widely varying states of economic health. Despite the different starting points, the immediate economic impacts were similar as lockdowns to prevent the spread of the virus impacted the travel and tourism sectors and subsequently, the rest of the non-oil economy.  A recent Pricewaterhouse Coopers (PwC) report illustrates (through the purchasing managers index (PMI) series which is known to correlate with non-oil GDP trends) that economic decline in the region has reached record lows. As the international response continues to develop, organizations across the region need to rapidly respond to several significant challenges. Professional Accountancy Organizations (PAOs) in the MENA region have been demonstrating resiliency, innovation, and regional commitment.

Resiliency

In Yemen, accounting and auditing professionals of the Yemen Association for Certified Public Accountants (YACPA) have persevered and recently attained alignment with International Financial Reporting Standards (IFRS), International Standards on Auditing (ISA), and other international standards for their country. The road has been difficult, but YACPA professionals have attended every key event, shared their stories to inspire others, and have worked tirelessly to stand as a symbol of professionalism and commitment for the region.

Another example is the Lebanese Association of CPAs (LACPA) which has contributed advice, guidance, and support to their country as it navigates the currency crisis, national emergency, and unrest by acting as a center of excellence for their citizenry and country.

Innovation

While Lebanon was already amid its most severe economic crisis, the United Arab Emirates (U.A.E.) was facing headwinds from oversupply in its real estate sector, and Yemen’s economic troubles worsened as COVID-19 continued to spread. Nevertheless, the PAOs in these two countries remained open, demonstrated flexibility, and recognized the power of change.

Yemen is experiencing a triple emergency due to a reduction in humanitarian funding, increasing fighting and airstrikes, and a pandemic. Nevertheless, YACPA responded quickly to increase revenue and continue its operations. The association is currently benefiting from virtual training offerings whereby participation in training events has increased from roughly 100 participants to 300 participants per training during 2020. This exemplary association is leveraging digital technologies, reaching universities all over Yemen and working with external PAOs to ensure that all students have access to high quality education and training during this time.

The UAE Accountants & Auditors Association (AAA) holds a future-oriented vision for strengthening the accountancy profession across the country. Their conception of what constitutes an accountant, how to best improve the quality of financial reporting, and the role and impact an association can have on government and economy is uniquely theirs. AAA is presently working to restructure its membership and align with emerging global trends and best practices to embrace a more holistic definition of a ‘professional accountant’ so as to best position their country’s economy for success.

Both YACPA and the AAA have had to think well ‘outside of the box’ — brainstorming and designing practical work and solutions that meet the changing times. They stand out as examples of how the MENA region profession is not looking to the past, but rather embracing and preparing for the future to ensure sustainable economic growth and financial stability for their economies.

Regional Commitment

PAOs in the region, with support from the Arab Federation of Accountants and Auditors (AFAA), continue to strengthen their commitment to each other. Three associations which have stepped up repeatedly—the Saudi Organization for Certified Public Accountants (SOCPA), the Palestinian Association of Certified Public Accountants (PACPA) and the Jordan Certified Public Accountants (JACPA)— demonstrate the spirit of Arab unity and support. These organizations have selflessly given themselves to the development of accountancy institutions and professionals. JACPA and PACPA, for example, worked with LACPA, the American Institute of Certified Public Accountants (AICPA) and AFAA to enhance audit quality assurance review skills in the region. In 2020 and 2021, JACPA plans to build upon its 10 sub-committees to continue to expand the scope of its program and provide voluntary additional QA services to members, as well as members of other PAOs in the region who request this service. They have shared lessons learned, their time, skills, and abilities to support the sisterhood and brotherhood of the Arab profession and to promote pan-Arabism.

The Future.

The challenges facing PAOs in the MENA region, even on a normal day, are many and COVID-19 places one more burden on these entities. These PAOs have a track record of showing resilience, adapting evidence-based practices for their unique contexts, and innovating to overcome challenges that impact the services offered to members. The COVID-19 crisis might be a tipping point if we look across time horizons for the future of the accountancy profession, for how we live and work, and even the future of the planet. We have a great deal to learn from PAOs in emerging economies that are demonstrating resiliency, innovation, and regional commitment.

For additional resources, guidance, and advice from the IFAC community on adjusting and managing during this rapidly evolving situation, visit the IFAC, IAASB, IESBA, and IPSASB COVID-19 web pages, which are continually updated. For PAOs that may need support in offering Continuing Professional Development (CPD) online, please see IFAC’s Online CPD Services for Professional Accountancy Organizations webpage, which lists several IFAC member organizations that are ready to assist PAOs with online CPD for members.

Gabriella Kusz MBA, MPP, CPA, CGMA

Gabriella Kusz was a principal, Strategic Initiatives, at IFAC where she supported accountancy’s leadership and innovation in the digital era.

Gabriella also serves as board director at the Global Digital Asset and Cryptocurrency Association, a global voluntary self-regulatory association for the industry where she supports awareness building and education. She also serves as a Distinguished Global Expert for the Global Small and Medium Enterprise Policy Network at Prince Sultan University (Riyadh, Saudi Arabia), as an advisor to the Banque Saudi Fransi / PSU Global Islamic Finance, Tax and Zakat Centre, and as deputy chair of the Government Blockchain Association Regulator Working Group.

Prior to joining IFAC, Gabriella worked with the World Bank Group Governance Global Practice where she was responsible for leading the Corporate Governance and Financial Reporting workstream for the Middle East and North Africa region.

Gabriella is a licensed US CPA (Virginia) and CGMA and holds AICPA Certificates in IFRS as well as the Global Reporting Initiative Certificate in Sustainability Reporting Standards. She holds a Master’s in Public Policy (International Policy and Development) from Georgetown University and a Master’s in Business Administration and Bachelor of Accounting from the University of Dayton.

 

 

 

Dana Jensen
Dana Jensen

Senior Manager, IFAC

Dana Jensen is a trilingual Senior Manager with more than 10 years of experience working at IFAC to support the development, adoption, and implementation of high-quality international standards. She is primarily responsible for managing engagement with the Middle East North Africa (MENA) and Caribbean regions at IFAC. She is also the lead staff responsible for managing the IFAC Professional Accountancy Organization (PAO) Development & Advisory Group, which actively contributes to IFACs strategic objectives by raising awareness on PAO development, facilitating adoption and implementation of international standards and best practices, and empowering PAOs with guidance, leadership, and technical assistance. Since 2021, Dana has led IFAC’s Islamic Finance thought leadership program to support the United Nations Sustainable Development Goals (SDGs) as it promotes socially responsible development and links to economic growth and social welfare.

Prior to her time at IFAC, Dana was a Policy Coordinator at the United Nations (UN) in the Department for Peacekeeping Operations. She holds an MSc from Columbia University (2011); Prince Sultan University-Banque Saudi Fransi Graduate Fellow in Islamic Finance (2021-2023); and holds a Diploma in Islamic Finance from the Chartered Institute of Management Accountants (CIMA) (2023).

Dana was born in New York to parents that worked at the UN as diplomats. She identifies as a Third Culture Kid with family in Lebanon, Saudi Arabia, Singapore, Turkey, United Arab Emirates, and Yemen. She lived in several countries in the Middle East including Iraq, Jordan, and Lebanon before settling back in New York for University and Graduate level studies in 2004. While currently residing in New York with her husband and kids, Dana continues to travel to the Middle East regularly.