Multilateral development banks are key for fostering cooperation

The UAE, represented by the Ministry of Finance (MoF) and the Central Bank of the UAE, participated in the fourth G20 Finance Ministers and Central Bank Governors Meeting, on the sidelines of the Annual Meetings of the World Bank Group and the International Monetary Fund, taking place in Washington, DC, USA, and concluded on Saturday.

The UAE delegation was led by Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, and included Ebrahim Al Zaabi, Assistant Governor for Monetary Policy and Financial Stability, Ali Abdullah Sharafi, Acting Assistant Undersecretary for International Financial Relations at the MoF, Hamad Eisa Al Zaabi, Director of the Office of the Minister of State for Financial Affairs, Thuraiya Hamed Alhashmi, Director of International Financial Relations and Organisations at the MoF, along with a number of experts from the Ministry of Finance and the Central Bank.

Mohamed Bin Hadi Al Hussaini stressed the critical role multilateral development banks play in fostering cooperation with local partners. He noted that establishing regional centres for these banks would strengthen their presence in beneficiary countries and help facilitate joint investment opportunities. He stated: “This collaboration will help overcome challenges hindering the financing of development projects and expand co-financing models to cover more projects that support sustainable development goals.” He highlighted the advancements made by the UAE in digital infrastructure and financial innovation, emphasising the country’s efforts to promote financial inclusion through the use of advanced financial technologies.

He also referred to the initiatives supporting micro, small, and medium enterprises (MSMEs) in the UAE, as well as the efforts to leverage digital tools to facilitate access to necessary financing for these enterprises.

In the context of climate challenges, he reaffirmed the UAE’s commitment to the Paris Agreement’s objectives, pointing out the national contributions the UAE has made to achieve these goals.

He also highlighted the semi-annual transparency report the UAE is publishing this year as part of its efforts to uphold global environmental standards.

He concluded by underscoring the need to align the policies of multilateral financial institutions with the current global economic changes.

During the Finance Ministers and Central Bank Governors Meeting, the members discussed ways to enhance the efficiency of multilateral development banks and their responsiveness to global needs by building capacities and supporting sustainable development goals through improved governance within these banks and increasing geographic representation.

Additionally, the members emphasised the importance of boosting cooperation between governments and the private sector to address development priorities. The members underscored the need to ensure the implementation of the multilateral development banks’ roadmap, approved by the G20, through precise and effective monitoring and reporting mechanisms.

The members also discussed global financial stability prospects, highlighting current vulnerabilities in the global economy. The session further explored strategies for improving countries’ operational readiness in managing large financial inflows and promoting financial inclusion through digital tools to support micro, small, and medium enterprises.

In light of the 25th anniversary of the G20 financial track, the members reflected on the evolution of the global economy and the key achievements of the track over this period. The discussions also covered future economic projections, with a focus on the challenges facing the global economy in the pursuit of sustainable development goals and the Paris Climate Agreement.

A day earlier, Dr Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, reasserted the UAE’s commitment to open, rules-based trade during the G20 Trade and Investment Ministerial Meeting (TIMM) in Brazil, and again made the case that WTO reform can advance the cause of multilateralism and ensure equitable access for all nations to global supply chains. The UAE was participating as an invited guest of Brazil during its G20 Presidency, reflecting the UAE’s growing influence on the global economy, particularly on trade issues.

During the meeting, which will shape the outcomes of the G20 Leaders’ Summit in November 2024, Al Zeyoudi addressed two key sessions regarding the global trading system: the first on WTO reform and the need to strengthen the multilateral trading system; the second on trade’s role in sustainable development and investment. The UAE delegation included Juma Al Kait, Assistant Undersecretary for International Trade Affairs at the Ministry of Economy, who led the UAE’s participation in the fourth and final G20 Trade and Investment Working Group meeting, and Saleh Ahmad AlSuwaidi, Ambassador of the United Arab Emirates to Brazil.

WAM