MoF’s initiative to support Arab countries

Abu Dhabi / WAM

The UAE, represented by the Ministry of Finance (MoF), presented a new initiative for developing innovative programmes that support Arab countries with the current economic and financial challenges, and contribute to the overall economic development.
This initiative falls in line with the support provided by Arab financial institutions to Arab countries in transition, to help them in setting the necessary reforms.
The announcement was made during the seventh ordinary session of the Council of Arab Ministers of Finance, which was held alongside the joint annual meeting of Arab Financial Institutions in Bahrain.
The UAE has recommended to form a committee which will include presidents and general managers of the Arab financial institutions, to discuss innovative mechanisms and programmes that support Arab countries in respective fields. Each president and general manager will present these ideas to the board of governors for approval. The UAE will also raise these recommendations to the board of governors to issue a final decision.
The joint Arab Financial Institutions comprise five multilateral development organisations, including board of governors for each of the Arab Fund for Economic and Social Development, Arab Monetary Fund, Arab Bank for Economic Development in Africa, and shareholders council of the Arab Investment and Export Credit Guarantee Corporation and the Arab Authority for Agricultural Investment and Development in addition to the Council of Arab Minister of Finance.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs, stressed MoF’s commitment to address topics on joint Arab work, which is an essential way to overcome challenges facing Arab countries. Arab Financial Institutions are required to review Arab countries’ work and goals to develop new mechanisms and innovative programmes that will help in enhancing joint Arab work under the current economic circumstances.
He said: “The Arab financial institutions should put in place innovative programmes that support Arab countries in the next phase. These institutions should also combine efforts to raise economic growth by improving joint projects between the public and private sector, activating the private sector’s role with a focus on financial inclusion, developing corporate governance in Arab institutions and supporting infrastructure projects. The Arab Economic Summit’s decision with regards to increasing the Arab funds and institution’s capital by 50% requires Arab financial institutions to increase their efforts and develop their work to achieve desired economic development.”

He added: “UAE vision aims to achieve a number of goals to overcome economic challenges and meet the overall development requirements in Arab countries, through developing innovative programmes for joint Arab work, creating job opportunities particularly for women and youth, enhancing the work environment and motivating creativity and innovation in Arab countries. There is also a need to develop programmes for countries facing conflicts, provide reconstruction support, develop cooperative mechanisms between institutions and national multilateral funds, and coordinate between regional and other international development funds with regards to providing the necessary support and being involved in joint projects.”
Arab countries experience significant challenges with poverty, poor distribution of national income, and increased unemployment rate on top, as a result of slowdown of economic growth, weak development trends, and poor educational and training curriculums. Arab countries have demonstrated great efforts within the past two decades in increasing opportunities to reach sustainable development, by implementing several reforms which aim to improve efficient use of resources. This increased by 5% the average growth rates between 2000 and 2015.
MoF is committed to participate in the “Joint Annual Meeting of Arab Financial Institutions” due to their position as a specialised platform in the Arab region to discuss financial and economic plans, and create future strategies to support development in Arab countries. MoF is also keen to demonstrate the UAE’s economic and financial model in order to attract expertise and investments that support and enhance the country’s macroeconomic growth rates.