Maktoum bin Mohammed: Rapid global changes require designing financial policies that meet the needs of national economies

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, stressed that “accelerating global changes require designing financial policies that meet the needs of national economies, which is something that lies at the core of our concerns and intersects with the financial issues that the forum discusses.” “The future, developing and implementing sustainable financial policies that focus on financial empowerment, trust, transparency, anticipating the future, sustainable development, innovation, and working to enhance economic growth and a competitive business environment, all of which are at the heart of our strategic goals.”

Yesterday, the Ministry of Finance in the UAE concluded the work of the “Eighth Public Finance Forum in the Arab Countries”, which it organizes in cooperation with the Arab Monetary Fund and the International Monetary Fund, as part of the World Government Summit 2024, which is being held in Dubai, today, and continues until February 14. Under the slogan “Foreseeing the Governments of the Future,” with the participation of heads of state, government leaders, ministers, senior officials, decision makers, and specialists in financial, economic, and social affairs from various countries of the world, and an elite group of global thought leaders and experts.

Qualitative recommendations

The forum participants adopted a set of specific recommendations on the necessity of continuing efforts to increase fiscal space, achieving a balance between enhancing public revenues and sustaining public debt, and the necessity of doubling and continuing efforts to combat climate change, to preserve resources, while strengthening international cooperation efforts to mobilize more financial resources directed to Arab countries. To reduce the climate financing gap, support climate adaptation initiatives in the region, strengthen social safety networks, and raise the most expensive and least effective direct support mechanisms, and the importance of having a medium-term framework for public finances and controlling their risks, in a way that enhances the confidence of investors and markets, and taking advantage of artificial intelligence opportunities to support activities. The digital economy, enhancing digital financial services, and raising the efficiency of both the digital infrastructure and the governance system in public institutions.

100 participants from senior officials

The Minister of State for Financial Affairs, Mohammed bin Hadi Al Husseini, opened the eighth session of the forum, which was held in the presence of the Director General of the International Monetary Fund, Kristalina Georgieva, the Director General and Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Fahd bin Mohammed Al Turki, and the Director General of the OPEC Fund for Development. , Dr. Abdul Hamid Al-Khalifa, along with ministers of finance, governors of banks and central banks in Arab countries, presidents and directors of regional and international financial institutions, and 100 participants of senior officials and specialists in regional and international institutions.

During his speech, Mohammed bin Hadi Al Husseini conveyed the greetings of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, to the participants, stressing His Highness’s keenness and generous patronage of the forum in its eighth edition. He also conveyed the greetings of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, and his appreciation for the recommendations that enhance ways of joint Arab action and contribute to addressing the financial and economic challenges facing the Arab region, ensuring the achievement of sustainable growth and social well-being in our Arab countries.

Sustaining growth and well-being

Al-Husseini said: “It is a matter of pride for the UAE to host this distinguished forum, which includes an elite of decision-makers and experts, and which has become a platform for constructive dialogue on financial and economic issues, and it comes at a time when countries in the region are facing a number of challenges, which must be addressed.” them, and address them in a way that ensures sustainable growth and social well-being. When looking deeply into the macroeconomic conditions in the Arab region, we realize the complex interplay of factors shaping the current economic landscape, as the region faces major challenges, especially debt-related vulnerabilities and tight financing conditions. These issues are not just numbers and economic data, but rather they reflect the tireless striving of the peoples of the region and their aspiration towards prosperity.”

He added: “Challenges generate opportunities, at a time when the Arab region stands at a crossroads and is preparing for a new phase of growth, which requires a set of structural reforms designed to stimulate development in an era characterized by tightening financial and monetary policies. Therefore, our mission is to formulate policies that not only stabilize economies, but also lay the foundation for sustainable and inclusive growth.”

He continued: “A distinguished example of proactive economic management is the successful reform of energy subsidies. By reallocating resources more efficiently, we not only promote a more sustainable energy sector, but also free up fiscal space for vital investments in infrastructure and human capital. However, these steps must be taken with a high awareness of the social dimensions of these reforms, as directing our economies towards efficiency and sustainability requires finding a careful balance between economic wisdom and social responsibility in the Arab region.

He said: “Several promising methodologies stand out, the most important of which is the approach of using the balance sheet to generate value from public assets, as this strategy takes advantage of state-owned assets to maximize their economic return, and transform them from inactive entities into active contributions to national wealth.”

He added: “While the future is fraught with challenges, it is full of opportunities. I am confident that the discussions and strategies that will be formulated in this forum will constitute a beacon of hope and a road map for a prosperous future. We hope that the results herald a new era of economic flexibility and growth in the Arab region.”

Support financial stability

Dr. Fahd bin Mohammed Al Turki thanked the UAE, the country where the Arab Monetary Fund is based, and praised the coordination and cooperation with the Ministry of Finance in the UAE for organizing the forum, and the support provided by the competent authorities in the country to the Arab Monetary Fund, noting the efforts of the concerned authorities in the Arab countries to enhance stability. Economic and financial opportunities for comprehensive and sustainable growth.

He stressed the importance of the forum as a forum to enhance opportunities to exchange experiences and expertise between Arab countries to discuss financial policy challenges, within the framework of economic and financial developments, and the related financial policies and procedures to address challenges related to debt and future financial issues in a world suffering from more stringent financing restrictions, indicating the Fund’s aspiration. – As it approaches celebrating the 50th anniversary of its establishment – it seeks to increase the volume of its resources available for lending, in light of the increasing financing needs of its member states, considering that the tightening of monetary policy during the last period has exacerbated the debt challenge and its effects on growth and the sustainability of public debt, and sometimes on Investors' confidence in economic stability, and he noted the strategic shift in managing government resources, through the balance sheet-based approach to maximize the return on public assets.

4 dialogue sessions

The “Eighth Public Finance Forum in the Arab Countries” included four dialogue sessions: the first, entitled “Macroeconomic Developments and Prospects,” included an overview of the macroeconomics of the Arab region, and looked into debt-related weaknesses and difficult financing conditions, in addition to discussing a set of necessary structural reforms. To stimulate growth in the region in an era of tight fiscal and monetary policies. Under the title “Successful energy subsidy reforms and targeted social safety nets,” participants in the second session discussed the advantages of energy subsidy reforms, as fuel subsidy levels in the Arab region are still relatively large compared to their counterparts.

Participants in the third session, entitled “The Balance Sheet Approach to Generating Value from Public Assets,” discussed how to enable governments to improve the return on public sector assets, with a particular focus on the return on assets among non-financial public companies, based on the public sector balance sheet approach. Which was presented in the 2018 Financial Monitor Report. The session also highlighted the extent of the poor performance of state-owned companies, which constitutes a major obstacle to public finances, and thus the increase in contingent liabilities.

Under the title “Generating Revenues through Tax Administration Reforms,” participants in the fourth session presented an assessment of tax administration reforms in the Arab region, and discussed the region’s challenges for developing effective tax administration.

round table

At the conclusion of the activities of the “Eighth Public Finance Forum in the Arab Countries”, a round table was organized in which the Arab Ministers of Finance, the Director of the Public Finance Department at the International Monetary Fund, Vitor Gaspar, and the Director General and Chairman of the Board of Directors of the Arab Monetary Fund, Dr. Fahd bin Muhammad Al-Turki, participated. .

• 4 sessions discussed ways to empower governments and stimulate growth in the region.

Maktoum bin Mohammed:

• Our interests intersect with the future financial issues that the Forum discusses.

• Our strategic goals include promoting economic growth, a competitive business environment, and financial empowerment.

Muhammad Al-Husseini:

• Our mission is to formulate flexible financial policies to stabilize our economies.