The Arab Monetary Fund estimated the growth of Arab economies during the year 2022 at a rate of 5.4%, compared to a growth rate of 3.5% during 2021, and it is expected that the growth rate of Arab economies during the current year will reach 4%, according to what was stated by Dr. Abdul Rahman bin Abdullah Al Hamidi, Director General and Chairman of the Board of Directors. The Arab Monetary Fund, during the eighth meeting of the Undersecretaries of the Arab Ministries of Finance, which concludes its work, Thursday, in Abu Dhabi, with the participation of experts from the International Monetary Fund, the World Bank and the Organization for Economic Cooperation and Development, in addition to the Arab Monetary Fund, which assumes the technical secretariat of the Council of Arab Finance Ministers.
Al-Hamidi said: “The relative improvement in global demand levels, the high growth rates of the oil and gas sectors, and the continuation of Arab governments to adopt stimulus packages to support economic recovery, which amounted to about $400 billion during the period (2020-2022), in addition to the positive impact of implementing many Among the economic reform programs, visions and future strategies aimed at enhancing levels of economic diversification, reforming the business environment, encouraging the role of the private sector, supporting human capital, and increasing the level of economic resilience in the face of shocks, enabled the enhancement of recovery opportunities during 2022 ».
- Economic growth
He pointed out that the Arab Monetary Fund estimated the economic growth rate in the Arab region in 2022 at about 5.4%, compared to 3.5% in 2021, while the economic growth rate for Arab countries is expected to reach about 4% in 2023. He pointed out that the bond and sustainable sukuk market witnessed Growth in response to increasing interest in environmental and social policy considerations, and sustainable development goals, and as a result, sustainable debt volumes more than doubled between 2020 and 2021, to exceed US $ 2.9 trillion, and this expansion is expected to continue with the entry of new issuers into the market in order to meet the requirements social and environmental goals.
- consecutive shocks
Dr. Al-Hamidi stressed that the successive shocks that the global economy was exposed to over the past 15 years, led to the accumulation of debts in most countries of the world, specifically, with the “Corona” pandemic that began in 2020 and the subsequent economic downturn due to the current global developments that pushed Most of the Arab countries restricted their monetary policy by raising interest rates due to inflationary pressures, or the currency’s peg to the US dollar, as the Arab countries were subjected to pressures in terms of public finances, and they had to face the challenges of stabilizing the economy and working to enhance debt sustainability. He referred to the results of a working paper prepared by the Arab Monetary Fund on “Assessing Debt Sustainability to Face Exposure to Shocks,” which showed that the ratio of public debt to GDP in borrowing Arab countries increased from about 47.1% in 2010 to about 108.8% in 2021. According to the estimates of the Arab Monetary Fund, it also indicated the need to improve the ability to bear the burdens of public debt and to allocate more fiscal space for social development expenditures. The President of Arab Monetary touched on the importance of global corporate tax reforms, looking forward to cooperation with the Organization for Economic Cooperation and Development on this subject, based on the implementation map and the implications for the Arab countries, and the G20 orientations in this regard.
- Exchange of experiences and expertise
He also referred to the importance of enhancing the exchange of experiences and expertise between Arab countries regarding the two topics “The Role of Fiscal Policies in Promoting Food Security” and “Supporting the Transition to a Circular Carbon Economy”, stressing the importance of identifying the challenges facing Arab countries in this regard and strategies to overcome them, and also touched on The open discussion on “Assessing the impact of tax policy on economic growth in the Arab countries.”
Al-Hamidi concluded his speech, praising the efforts of the UAE in providing the great care and support it provides as the headquarters country of the Arab Monetary Fund, which undoubtedly contributes to the fund’s carrying out the tasks entrusted to it.
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