Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, participated in the fourth G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, which was held on October 12-13 in Bali, Indonesia.
Held on the sidelines of the 2022 International Monetary Fund-World Bank Group Annual Meetings, the meeting sought to deliberate the latest global economic developments and updates on executing the priorities set forward by the Indonesian presidency.
Younis Haji Al Khoori, undersecretary of the Ministry of Finance; and Ali Abdullah Sharafi, assistant undersecretary of the International Financial Relationship Sector at the Ministry of Finance; attended the meeting alongside G20 members, invited countries, and international organisations.
The meeting aimed at previewing the latest economic developments, focusing on the compounded risks to financial stability, as well as potential actions that the G20 should pursue to lead international response to such challenges.
Al Hussaini thanked the Indonesian presidency for mobilising efforts to address the rising challenges in the food and agriculture markets.
“We must join our efforts to address elevated inflation pressures to support achieving financial stability, particularly for low-income countries. We must work closely to advance multilateral cooperation for climate action, energy security, and economic growth,” he said.
The members discussed developments in the financial legislations and policies. During his intervention, Al Hussaini stressed on the need to ensure that financial systems have adequate buffers to withstand capital flow volatility and emphasised the role of digital currencies in shaping the future of international financial systems in light of an integrated and cross-border legislative environment.
On infrastructure and how to best leverage private sector participation to scale up sustainable infrastructure, Al Hussaini highlighted the need to continue exchanging expertise and policies in scaling up sustainable infrastructure investments.
He also previewed the new Public Private Partnership (PPP) law rolled out by the UAE, which is designed to encourage the private sector to invest in comprehensive development projects.
On sustainable finance, and during his intervention, Al Hussaini said: “In realisation of our commitment to achieve net zero by 2050, the UAE is actively developing the sustainable finance landscape. Our journey in the UAE has been informed by the guidelines of the Sustainable Finance Roadmap, which we see as a major contributor in advancing the 2030 Agenda for Sustainable Development, in line with the United Nations Framework Convention on Climate Change and the Paris Agreement. As the upcoming host of COP28 next year, the UAE’s major focus will be on increasing international investment in vulnerable countries and supporting their access to sustainable finance, and we are looking forward to working with the G20 and our international partners to achieve these objectives.”
Finally, Ministers and Central Bank Governors discussed the developments in international taxation, and the base erosion and profit shifting (BEPS) project.
Al Hussaini emphasised that pillar one of the project should devise a solution that adequately addresses administrability and tax certainty concerns, emphasising the need to acknowledge the priorities of the various country profiles and achieve a balanced and satisfactory compromise.
On pillar two, he referenced the importance of ensuring simplicity in the tax procedures currently under discussion in the Organisation for Economic Co-operation and Development (OECD), and the need to consider the implications of different implementation timelines on countries’ competitiveness.
The UAE minister highlighted the importance of ensuring that the international tax package is sufficiently ready for effective and efficient implementation. —