Governments need to be vigilant to achieve strong recovery in 2021

Business Bureau, Gulf Today

Heading the attending UAE delegation, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, participated in the fourth G20 Finance Ministers and Central Bank Governors’ meeting that took place virtually on Oct.14, 2020 (Wednesday).

The meeting discussed the latest global economic outlook in light of the latest developments and evolving situation with the COVID-19 pandemic.

The UAE delegation included Saif Hadef Al Shamsi, Deputy Governor of the Central Bank of the UAE.

During the meeting, Al Tayer stressed the importance of the calibration of policy responses as governments continue to pursue balanced and sustainable economic recovery. Al Tayer also noted that the economic growth prospects in the GCC region and around the world are intertwined with the path of COVID-19 outbreak. Thus, governments should remain vigilant and utilise all possible financial policy options to achieve a strong and sustainable economic recovery in 2021.

Al Tayer said: “I would like to thank the G20 members and participants for their collaboration on the development of the G20 COVID-19 Action Plan, and for showcasing the UAE’s contribution to the development of this flagship and unprecedented plan. The Action Plan is an exemplary model of the global collaboration that we needed to devise a coordinated and committed response to the pandemic. We are glad in the UAE to have been part of developing the plan, and we look forward to continuing our contribution to its development as the plan lives on to guide our response to this outbreak.”

The meeting discussed various topics including ways to enhance cross-border payments; developing rules for digital taxation among G20 countries; and the possibility of digital currency exchange. Member countries also reviewed the progress in the G20 Debt Service Suspension Initiative, which is subject to extension for another year. At the end of the meeting, the Finance Ministers and Central Bank Governors endorsed the deliverables of the Working Groups and signed off the Finance Track’s communique. A press conference - chaired by Saudi Arabia, under its G20 presidency - was held at the conclusion of the meeting

The Finance Ministers will reconvene for their final meeting of the year on November 20th, which will follow the joint Sherpas and Finance Deputies on Nov.19.

The G20 tourism ministers earlier reviewed efforts to rebuild and boost the tourism field, one of the hardest hit by the coronavirus pandemic.

According to the Saudi Press Agency, the meeting, chaired by Saudi Arabia, also discussed the contribution of the tourism field to sustainable development and to further support international economy, due to the number of job opportunities it provides.

The ministers hailed the progress made during Saudi Arabia’s presidency of the group, and the Kingdom’s efforts to create a safe travel experience, as well as its commitment to pledges made to tackle issues imposed by the COVID-19 pandemic.  Tourism is expected to drop by 60 to 80 per cent during 2020 due to the coronavirus, the ministers said, adding that they are working with authorities to ease travelling restrictions to promote tourism.

They highlighted the importance of developing digital abilities of very small, small and medium companies in the tourism industry, allowing them to contribute further to the field.

The Ministry of Finance (MoF) participated in the G20 Finance Track’s third and final Global Partnership for Financial Inclusion meeting, which took place virtually. The meeting focused on the assessment of this year’s achievements and set the stage for the GPFI 2021 priorities and work plan. Mariam AlHajri, Deputy Director of the General Department at MoF attended the meeting.

The ministry highlighted the need to address all barriers obstructing the advancement of a fair and equitable financial inclusion for all people in need. More specifically, it emphasised the importance of aligning with the UN Sustainable Development Goals recommendations about enhancing the representation of countries on the global stage through developing a partnership strategy while also enhancing the collaboration and learning with other G20 working groups.

As the UAE now prepares to participate in the GPFI meetings as a non-G20 member for the next three years, it has suggested three key priorities to be taken forward under the G20 Italian presidency in 2021. These include the development of digital platforms to intensify the knowledge transfer among GPFI members, the need to focus on women entrepreneurship and the provision of government support in SME financing.

The outcomes of this GPFI meeting will be discussed during the upcoming fourth ordinary Finance Ministers and Central Bank Governors meeting in October 2020 and to G20 leaders in November 2020.