H.E. Dr. Rania A. Al-Mashat, Minister of International Cooperation, delivered the opening speech at the annual meetings of Arab financial institutions and funds.
The event, which kicked off this morning in the New Administrative Capital, is held under the patronage of H.E. President Abdel Fattah El-Sisi.
It was attended by Dr. Mostafa Madbouly, Prime Minister, and heads of Arab financial institutions and entities, as well as governors and deputy governors of Arab countries at those institutions from various Arab countries, and representatives of international financial institutions.
The Minister of International Cooperation welcomed the Arab delegations, heads and representatives of financial institutions, to the 2024 joint annual meetings of Arab financial institutions, stressing that the patronage of H.E. President Abdel Fattah El-Sisi for the event confirms his support for development efforts in our Arab nation and his continuous support for Arab issues.
Al-Mashat also thanked H.E. Dr. Mostafa Madbouly, Prime Minister, for his direct support for Egypt's work with Arab financing institutions, and his directives to provide all support and assistance to the current edition of the meetings.
The Minister of International Cooperation emphasized that Arab financial institutions and organizations have developed a distinct identity and unique developmental nature, integrating to support development efforts in our Arab nations.
Dr. Al-Mashat added that this is confirmed by the great diversity in the fields of work, including those that address imbalances in Arab economies and provide support for the macro economy, and those that provide soft financing for development projects. Some institutions specialize in providing investment guarantees and export credit, in addition to encouraging foreign direct investment and trade exchange, which enhances their comprehensive approach to supporting development in various economic sectors in our countries.
New Variables:
H.E. emphasized that this version of the meetings will take into account the new variables imposed by the current circumstances at all levels, through sharing ideas to enhance economic and social returns, and support sustainable development goals while preserving the environmental dimension, especially after climate action itself has dominated the agenda of international financial institutions over the past years.
Partnership between Egypt and Arab Financing Institutions
In this context, the Minister of International Cooperation explained that Egypt has presented a model for cooperation with Arab financial institutions and organizations that have supported the Egyptian state's orientations to achieve development in various fields, and increase openness to involve the private sector in development efforts.
Dr. Al-Mashat highlighted the significant cooperation from Arab institutions and funds in financing the national program for the development of the Sinai Peninsula, that precious spot of Egyptian land, where Egypt has implemented an ambitious program with direct support from the political leadership and financing from Arab institutions, which contributed to the implementation of constructive projects, including, but not limited to, the development clusters project, and the agricultural and Bahr El-Baqar Wastewater Treatment Plant- the largest of its kind in the world - which provides clean water for irrigating 400,000 acres, and the Mahsamah wastewater treatment plant.
H.E. also pointed out that one of the most prominent projects financed by Arab institutions is the South Helwan Power Plant project, which won the first edition of the Sheikh Abdul Latif Al-Hamad Development Award, presented by the Arab Fund for Economic and Social Development, and is awarded to the best economic and social development project in the Arab world.
Furthermore, the contribution of Arab institutions is a key and active factor in achieving Arab integration, through financing the Egyptian-Saudi electricity interconnection project, which links the largest two systems in the Arab world, which enhances energy sources and lays the foundation for comprehensive Arab interconnection.
Global Development Financing Gap
The Minister of International Cooperation referred to the latest United Nations report on the sustainable development financing prospect which revealed enormous challenges hindering the efforts of the international community in this regard. This is due to the doubling of the development financing gap from $2.5 trillion before the "Covid 19" pandemic to $4.2 trillion currently, as a result of geopolitical tensions, climate disasters, and other challenges. This confirms that there is no way to achieve the 2030 Development Agenda without reforming the international financial system, accompanied by a massive increase in the amount of financing available.
Dr. Al-Mashat continued, saying that while the integration between multilateral development banks has become an indispensable international requirement, and a key focus of global financial structure reform, Arab financial institutions undoubtedly hold great importance in the international system, given the significant financial and technical advancements they have made over the past periods. This makes them a strong supporter of calls for reforming the global financial system to bridge the financing gap and provide more innovative tools.
H.E. emphasized that the direct financial support from the governments of Arab member states, and the efforts made by the boards of directors of these institutions to strengthen their financial base and support their diverse activities, will enable them to fulfill their mission at both the Arab and international levels.
Arab Initiatives in the International Development Financing prospect
The Minister of International Cooperation noted that Arab financial institutions have become an active bloc in international development financing and an influential element in the global initiatives map, aimed at addressing major imbalances through effective initiatives, such as the Arab Coordination Group’s (ACG) initiative, launched at COP27 to provide joint financing of $24 billion to member states by 2030 to address the global climate crisis. This highlights the role of Arab financial institutions as a key player in addressing climate change, amidst the increasing financing gaps, successive shocks and crises, and financial constraints.
Dr. Al-Mashat pointed out that the great challenges facing our Arab nation at the present time require the continuation of developing work and providing all means of support to strengthen the message of our Arab institutions in empowering the private sector to lead development efforts and enhance the sustainability of our path towards achieving the sustainable development goals and our national strategies.
H.E. concluded her speech by emphasizing that these meetings will contribute to setting general frameworks and approving plans and policies for Arab financial institutions, enabling them to support development efforts in our Arab countries and enhancing their ability to be resilient and respond to successive crises.
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