ABU DHABI: Obaid Humaid Al Tayer, Minister of State for Financial Affairs, headed the Arab Group at the International Monetary and Financial Committee, MFC, meetings held from October 7 to 9, and at the Arab Group’s coordination meetings.
The meetings took place alongside the 34th annual meetings of the International Monetary Fund, IMF, and the World Bank Group, WBG, in Washington DC. Discussions were held about global economic development and prospects as well as challenges faced worldwide. The committee also discussed Al Tayer’s remarks on the Arab Group which covered elements of the global economic recovery, and highlighted the fund’s role in establishing stable assessments of global expectations, focusing on solutions to overcome global economic challenges. On the sidelines of the IMFC meetings, Al Tayer said, “Global growth remains subdued, particularly for large advanced economies who still face the risks of deflation, despite signs of recovery in some economies. Debt overhangs and uncertain prospects of future demand still hinder investment and slow growth has exposed underlying weaknesses in many countries, however, enhancing financial resources, high debt related to demand-supporting policies, and expanding the use of interest rates, contribute to developing the overall global economy.” Al Tayer pointed out the effects of the decline in oil prices and the economic issues facing Arab countries, which require oil exporting countries to introduce significant fiscal consolidation measures, has accelerated the already ongoing economic diversification away from the dependence on oil.
He said, “This has included consideration of labour market reforms to raise employment and productivity. The UAE and some other countries have introduced measures to improve the efficiency of public spending and monitor service delivery. Infrastructure programmes and prioritising are taking place as well as support for innovation and financing SMEs.” Al Tayer stressed the importance of the IMF and Arab countries’ cooperation, to promote policies that support economic diversification, develop sound fiscal policy that supports innovation and contributes to achieving sustainable economic growth.
