Al-Mashat applauds Arab Coordination Group’s initiative to address climate crises – Dailynewsegypt
Minister of International Cooperation, Rania Al-Mashat, highlighted the distinct identity and unique developmental nature of Arab financial institutions and organizations. These entities collaborate to support development efforts across our Arab nations.
During her opening speech at the annual meetings of Arab financial institutions and funds, held in the New Administrative Capital under the patronage of President Abdel Fattah Al-Sisi, Minister Al-Mashat emphasized the diversity of their work. These institutions address imbalances in Arab economies, provide support for the macroeconomy, and offer soft financing for development projects. Some specialize in investment guarantees, export credit, foreign direct investment promotion, and trade exchange. Their comprehensive approach contributes significantly to development across various economic sectors in our countries.
Acknowledging the current circumstances, Minister Al-Mashat highlighted the need to enhance economic and social returns while preserving the environmental dimension. Climate action has become a dominant agenda item for international financial institutions in recent years.
Arab institutions and funds have played a crucial role in financing Egypt’s national program for the development of the Sinai Peninsula. This precious Egyptian land has seen ambitious projects supported directly by political leadership and funding from Arab institutions.
Furthermore, Arab institutions actively contribute to Arab integration. The Egyptian-Saudi electricity interconnection project, linking the two largest systems in the Arab world, enhances energy sources and lays the foundation for comprehensive Arab interconnection.
Referring to the latest United Nations report on sustainable development financing, Minister Al-Mashat highlighted the enormous challenges faced by the international community. The development financing gap has doubled from $2.5trn before the COVID-19 pandemic to the current $4.2trn. Geopolitical tensions, climate disasters, and other challenges underscore the urgency of reforming the international financial system and significantly increasing available financing to achieve the 2030 Development Agenda.
Arab financial institutions, acting as an active bloc in international development financing, play a pivotal role. The Arab Coordination Group’s (ACG) initiative, launched at COP27, aims to provide joint financing of $24bn to member states by 2030 to address the global climate crisis. Amidst growing financing gaps, successive shocks, and financial constraints, these institutions are key players in addressing climate change.
In conclusion, these meetings will shape general frameworks, approve plans, and set policies for Arab financial institutions. Their resilience and ability to respond to successive crises will further support development efforts in our Arab countries.