The UAE represented by the Ministry of Finance and the Central Bank of the UAE participated in the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under Brazil’s presidency in São Paulo.
Leading the UAE delegation was Mohamed Hadi Al Hussaini, minister of State for Financial Affairs. The delegation also included Ebrahim Al Zaabi, assistant governor for Monetary Policy and Financial Stability at the Central Bank of the UAE; Ali Abdullah Sharafi, assistant under-secretary of the International Financial Relationship Sector at the Ministry of Finance; and Thuraiya Hamid Alhashmi, director of International Financial Relations and Organisations Department at the Ministry of Finance.
Al Hussaini emphasized the importance of the UAE’s participation in the G20’s activities, which this year focuses on the themes of “Building a Just World and a Sustainable Planet.” The Brazilian Presidency has set priorities such as reducing hunger, poverty, and inequality worldwide, promoting equitable governance models, and fostering socio-environmental development with a fair and inclusive ecological transition.
Read more: UAE partakes in the 2nd Finance Ministers and CB Governors Meeting
Exploring areas of mutual cooperation
During the G20 FMCBG meeting that took place on February 28th and 29th, Al Hussaini held bilateral meetings with Enoch Godongwana, minister of Finance of the Republic of South Africa; Christian Lindner, minister of Finance of the Federal Republic of Germany; and Sergio Díaz-Granados, executive presidency of the Development Bank of Latin America and the Caribbean. The meetings aimed to explore areas of mutual cooperation, and Al Hussaini expressed the UAE Ministry of Finance’s willingness to share its experience in climate financing and sustainable development with Brazil, which will host the 2025 UN Climate Change Conference (COP30).
Strengthening international partnerships
Al Hussaini also highlighted the UAE’s interest in strengthening international partnerships and economic and financial cooperation, aligning with the objectives of the Ministry of Finance Strategic Plan 2023-2026 and the “We the UAE 2031” vision. The UAE is taking steps to address the economic impact of climate change, ensure the flexibility of global supply chains, improve international financial institutions, mitigate global debt vulnerabilities, and mobilize public and private resources for a global economy that supports digital infrastructure development and promotes financial inclusion.
In addition, Al Hussaini underscored the importance of investing in accelerated development and growth, as well as predicting trends in global trade and finding solutions to economic and development challenges such as tax transparency and Central Bank Digital Currencies (CBDCs).
Al Hussaini emphasized the UAE’s commitment to promoting financial inclusion and reducing inequalities through initiatives like the Financial Infrastructure Transformation Program launched in 2023. The UAE is an active member of the Global Partnership for Financial Inclusion (GPFI).
Medium-term growth prospects
Regarding medium-term growth prospects, Al Hussaini acknowledged challenges arising from slower global economic growth and reduced global trade, particularly affecting developing economies. This motivates the UAE to prioritize multilateral cooperation as it prepares to host the 13th WTO Ministerial Conference, aimed at reshaping the future of global trade.
Al Hussaini reaffirmed the UAE’s commitment to supporting the Organisation for Economic Co-operation and Development’s (OECD) work on taxation. The UAE plans to implement a corporate tax regime in 2023 and enact legislation supporting the domestic implementation of the global minimum tax through the OECD Pillar 2 solution.
Al Hussaini stressed the role of innovative instruments such as green bonds and sukuk in scaling up finance for development. The UAE has already demonstrated its commitment to climate resilience and sustainable finance by pledging $200 million to the Resilience Sustainability Trust in December 2023.
The G20 FMCBG meeting addressed the progress on the Brazilian Presidency’s priorities for 2024, including economic policies to address inequalities, global perspectives on growth, jobs, inflation, and financial stability, international taxation, global debt, and financing for sustainable development. The members also discussed global trends and risks impacting income equality, fiscal measures to reduce inequalities, and enhancing international cooperation to measure and mitigate inequality.
Global economic outlook
Furthermore, members exchanged views on the global economic outlook, the social impact of reduced growth prospects, and the opportunities and risks associated with the rapid adoption of artificial intelligence. They also discussed potential new initiatives for international tax cooperation and ongoing BEPS negotiations.
The members also discussed the future of the financial sector, digital innovation in finance, cross-border payments, development financing, public debt vulnerabilities, and ways to direct financing flows towards development goals.
This meeting marked the UAE’s fifth participation in the G20 since the establishment of the group. Previous participations include guest country status in India in 2023, Indonesia in 2022, Saudi Arabia in 2020, and France in 2011.
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