Obaid Humaid Al Tayer, Minister of State for Financial Affairs, participated in the Fifth Annual Arab Fiscal Forum on Monday, organised by the Arab Monetary Fund (AMF) along with the International Monetary Fund (IMF). Forum was titled ‘Covid-19 Pandemic and Lifeline Support in Arab Countries’, and it included discussions of the challenges faced by economic policymakers in the Middle East during pandemic and come up ways to mitigate the pandemic’s impact.

Obaid Humaid Al Tayer; Dr. Abdulrahman bin Abdullah Al Hamidy, Director General and Chairman of the Board of Executive Directors of the AMF; and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) were present at the virtual forum. Arab finance ministers; central bank governors; Arab monetary institutions; as well as many senior officials and experts from regional and international financial institutions; Arab finance ministries and central banks also took part in the forum.

Al Tayer welcomed the participating delegations in his opening speech and called platform’s importance in providing opportunities to share experience and discuss public policy challenges related to current economic and financial developments. He called on opening channels for enabling constructive dialogue and create plans based on clear vision.

Al Tayer said, “We meet today in challenging times, as all countries face unprecedented global struggle with the Covid-19 pandemic, which have far-reaching consequences for the global economy. Measures to contain its spread have led to a sharp decline in economic activity worldwide. It has dramatically affected global public health. Covid-19 has resulted in the deepest global recession since the great depression, resulting in a profound global socio-economic repercussion.”

“The global economic outlook remains uncertain as a result of the second wave of the Covid-19 epidemic and its impact on many major economies, as the situation remains precarious in many countries. The Arab Monetary Fund estimates that Arab countries recorded a contraction of 4% in 2020, compared to a growth rate of 1.6% in 2019 - a reflection of the effects of the pandemic, which is expected to lead to a decrease in external demand, which contributes about 48% of total demand in Arab countries; a decline in remittances from overseas workers; as well as a decline in foreign direct investment volumes and capital flows,” he added.

He added, “The current circumstances revealed that success in containing the virus comes at the expense of economic activity, so it is necessary to reconsider the way services are provided and prepare for the next stage after the epidemic because the post-Corona world will differ entirely from its predecessor. The ability to cope with the consequences of the crisis and the mitigation of its economic repercussions require the development of an unconventional rescue programme that will be able to adapt and deal wisely and appropriately with all the pandemic impacts.”

Ending his speech, Al Tayer noted how UAE has implemented appropriate measures to minimize economic damage, including fiscal packages; relaxation of monetary and macro prudential rules; and injecting liquidity in the banking system that amounted to US$78 billion. The forum talked over various fiscal policy issues and viewpoints for economic and financial development, and requisites to enhance social protection and support low-income families, and economic growth to enhance financial stability.

 WAM