UAE to support global economic recovery from Covid repercussions

Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, represented the UAE in the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting for 2022.

The meeting, which was held under Indonesia’s G20 presidency, on July 15 and 16, 2022 in Bali, Indonesia, sought to discuss the latest global economic developments and the expected effects of geopolitical challenges.

The meeting also deliberated G20 work plan aimed at strengthening and financing the health sector’s readiness and the progress made by the working groups of the G20 finance track.

Saeed Rashid Al Yateem, Assistant Under Secretary of the Resource and Budget Sector at the Ministry of Finance (MoF), Ali Abdullah Sharafi, Assistant Undersecretary of the International Financial Relationship Sector at MoF, and Thuraiya Alhashmi, Projects Manager at Ministry of Finance (MoF), attended the meeting with Al Hussaini.

Finance Ministers and Central Bank Governors of the G20 member and invited countries, as well as officials from regional and international organisations also attended the meeting.

Participants in the third FMCBG meeting reviewed the latest global economic developments related to the geopolitical tensions, global economic growth prospects, inflation, food security, and the impact of supply chain disruptions on global trade.

They also discussed the latest health sector updates, as well as countries’ ability to support the global economy’s recovery from the repercussions of the COVID-19 pandemic. Additionally, the participants deliberated global financial stability, including financial and macroeconomic risks, global debt, and digital currencies.

Members also discussed climate-related financial and economic risks, and reviewed the progress of G20’s work plan aimed at scaling up sustainable finance, as well as promote infrastructure resilience and investments.

They also deliberated digital financial inclusion with a focus on underrepresented groups, as well as the progress made on International Taxation.

On the sidelines of the Finance Ministers and Central Bank Governors meeting, Mohamed Bin Hadi Al Hussaini met with Lawrence Wong, Singaporean Deputy Prime Minister and Finance Minister, and Dr Nureddin Nebati, Turkish Minister of Finance and Treasury, and their accompanying delegations. Both meetings focused on bolstering bilateral relations and collaboration within the G20 priorities.

Regarding the priorities of Indonesia’s G20 Presidency for the global health agenda, Mohamed Bin Hadi Al Hussaini mentioned that the UAE is committed to support the Financial Intermediary Fund (FIF) for Pandemic Prevention, Preparedness and Response (PPR).

The UAE has pledged and committed to giving $20 million in support of Financial Intermediary Fund.

The Fund is expected to bring additional, long-term, dedicated resources for PPR, and help developing countries become better prepared for future pandemics.

Mohamed Bin Hadi Al Hussaini stressed on the importance of the G20’s role in coordinating financial and monetary policies to sustain the global economy’s stability, especially in light of the continuing rise in prices and the impact of global supply chain disruptions.

Additionally, he underscored the significance of strengthening international cooperation when addressing climate-related issues. He also stated: “As the upcoming host of COP28, the UAE welcomes opportunities to continue to work with the G20 and take concrete actions to address climate change challenges.”

On sustainable finance, Mohamed Bin Hadi Al Hussaini said: “We emphasise the importance of the private sector’s participation in the G20 sustainable finance agenda. We also encourage the continued exploration of new ways to engage the private sector for the achievement of an orderly, just, and affordable sustainable finance framework.”

On International Taxation and Base Erosion and Profit Shifting (BEPS) initiative led by the Organisation for Economic Co-operation and Development (OECD) and the G20, Al Hussaini referenced the importance of ensuring that the rules and the timeline for implementation are appropriate for the tax systems in various countries.

Al Hussaini also stressed on the need for reaching a solution that underpins equitable allocation of taxing rights.

Besides, he highlighted the significance of greater international collaboration and engagement with the business community and tax policy makers as countries start to embark on the implementation journey.

The third G20 FMCBG meeting was held following the G20 Finance and Central Bank Deputies (FCBD) meeting for 2022, which took place on the July 13 and 14, 2022. The 4th and last G20 FMCBG meeting for 2022 will be held in Washington DC, United States, in October.