Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, led the UAE delegation to the Second Finance Ministers and Central Bank Governors (FMCBG) meeting of the Finance Track of the G20 for 2023, which was held on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC from 10th to 16th April.

The meeting was held to review the progress made by the Finance Track and discuss the views of the G20 members on the priorities and goals set by the Indian presidency for this year.

The UAE delegation included Ebrahim Al Zaabi, Assistant Governor for Monetary Policy and Financial Stability at the Central Bank of the UAE; Younis Haji Al Khoori, Under-Secretary of Ministry of Finance; Hamad Al Zaabi, Director of the Office of Minister of State for Financial Affairs; Thuraiya Hamed Al Hashmi, Director of International Tax Department at the Ministry of Finance; and Fares AlKaabi, Senior Analyst, Research and Statistics Department at the Central Bank of the UAE. The meeting was attended by Ministers of Finance and Central Bank Governors from G20 member countries, invited countries, and international organisations and institutions.

During the meeting, Al Hussaini reiterated the importance of considering the different circumstances of low- and middle-income country groups in order to address global debt vulnerabilities.

On climate change, Al Hussaini advocated for greater multilateral collaboration to facilitate coordinated responses to the macroeconomic implications of climate change and to facilitate exploration of opportunities to address climate risks. “The collaboration between the G20 and COP28, which will be hosted by the UAE at Expo City Dubai in November, will be key to establish a strong foundation for providing actionable insights to address the macroeconomic effects of climate change”, he said.

Al Hussaini stated, “As the upcoming COP28 host, the UAE will work to advance collective cooperation between all governments, companies, youth and the civil society to devise practical climate solutions, raise ambitions, and enhance sustainable economic growth. The goal is to make COP28 inclusive and effective, uniting all sectors in developed and developing countries to focus on realistic solutions.”

He also stressed that the UAE is working tirelessly to support the international community in pursuit of an ambitious agenda that focuses on implementation and highlights opportunities and motives.

On strengthening the role of Multilateral Development Banks (MDBs), Al Hussaini noted that the UAE welcomed the formation of the G20 expert group to provide advisory on enhancing the financing role of MDBs and the MDB ecosystem.

During the meeting, the members’ discussions focused on economic cooperation to address uncertainties in the global economic outlook, and ways to scale up sustainable finance and financing for SDGs. Members also exchanged views on progressing the implementation of Multilateral Convention to Implement Tax Treaty Related Measures to Prevent base erosion and profit shifting (BEPS) to advance the international taxation agenda.

On the sidelines of the Finance Ministers and Central Bank Governors meeting, Younis Haji Al Khoori participated in the G20 Finance Deputies meeting that was organised by the India presidency. The meeting sought to discuss the progress made by MDBs in the implementation of the Capital Adequacy Framework (CAF) and the required reforms to boost their investing capacity.

At the end of the FMCBG meeting, the Ministers reiterated their countries’ commitment to the G20 priorities and agreed to review the progress made during the next meeting, which will be held at a time to be set by the Indian presidency later this year.

Meanwhile,  China is going to contribute about one-third of global growth this year, which will provide more opportunities to other countries, said Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva on Thursday.

“We have been pleased to see this rebound of China not only for China but also because of China’s role in the world economy,” Georgieva told a press briefing on the IMF’s Global Policy Agenda.

“China this year is going to contribute about one-third of global growth. We calculated that 1 percent more growth in China translates into 0.3 percent more growth for the economies that are connected to China,” she said.

According to the Chinese news agency, Xinhua, the IMF projected the Chinese economy will grow “quite strongly” by 5.2 percent this year, which is higher than China’s domestic projection of 5 percent.

Debt-ridden developing countries face years of economic pain brought on by a global growth slowdown, high interest rates and reduced investment, the UN Conference on Trade and Development (UNCTAD) warned.

WAM

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