Obaid Al Tayer heads Arab Group at IMFC meet

Abu Dhabi / Emirates Business

HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, headed the Arab Group at the International Monetary and Financial Committee (IMFC) meetings and the Arab Group’s coordination meetings. The meetings took place alongside the 34th annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington DC.
HE Al Tayer headed the Arab Group at the IMFC meeting where discussions were held about global economic developments and prospects as well as challenges faced across the world. The Committee also discussed HE Al Tayer’s speech on the Arab Group which covered elements on the global economic recovery, and highlighted the Fund’s role in establishing stable assessments of global expectations and focusing on solutions to overcome global economic challenges.
HE Obaid Humaid Al Tayer said: “Global growth remains subdued, particularly for large advanced economies who still face the risks of deflation, despite signs of recovery in some economies. Debt overhangs and uncertain prospects of future demand still hinder investment and slow growth has exposed underlying weaknesses in many countries, however, enhancing financial resources, high debt related to demand-supporting policies and expanding the use of interest rates contribute to developing the overall global economy.”

HE Al Tayer pointed out the effects of oil prices decline and the economic issues facing Arab countries, which require oil exporting countries to introduce significant fiscal consolidation measures, and accelerate the already ongoing economic diversification away from the dependence on oil. HE said: “This has included consideration of labor market reforms to raise employment and productivity. The UAE, including some other countries, introduced measures to improve the efficiency of public spending and monitor service delivery, infrastructure programmes and prioritizing is taking place as well as support innovation and finance SMEs.”

HE Al Tayer stressed the importance of the IMF and Arab countries cooperation, to promote policies that support economic diversification, develop sound fiscal policy that support innovation and contribute in achieving sustainable economic growth.

HE highlighted that conflict in this region has resulted in intense human and economic losses, and financial costs by countries hosting refugees. HE praised the IMF’s efforts and the WBG’s funding to support conflict affected countries, and stressed the need to continue providing financial assistance to host countries. HE added: “This current stage requires the development of tailor made solutions to manage issues around the region and countries facing economic challenges due to political reasons.”

HE the Minister of State for Financial Affairs headed the Arab Group’s coordination meeting, during which he discussed the topics that will be proposed by the International Monetary Fund, which affect economic growth in the Arab countries. In addition, the meeting also reviewed the topics proposed to the Fund, by the governors of the Arab States.

Commenting on the sidelines of the meeting, the Minister said: “The Arab Group seeks to coordinate its positions regarding the issues being discussed by the IMF. Through these meetings, we aim to make the most out of the Fund’s experience in the promotion of public finances, review of spending and increase in efficiency, with the purpose of maintaining fiscal sustainability and achieving greater progress in the area of economic diversification.”

HE Al Tayer also thanked the IMF for their support and productive participation in important local forums such as the Arab Fiscal Forum, the meeting of the Council of Arab Finance Ministers, the Council of Arab Central Bank Governors, and conferences organised by the GCC and the Arab Monetary Fund on a range of time-relevant topics.

IMF’s participation has contributed tremendously to profiling the Arab region’s initiatives, particularly in the areas relating to Arab Statistics, ArabStat, and VAT in the Gulf region. Furthermore, the Fund continues to work with countries in the region in order to identify priorities for the promotion of local economies and achievement of sustainable economic and social development.