His Excellency the Minister of Finance, Mr. Muhammad bin Abdullah AlJadaan, and His Excellency the Governor of the Saudi Central Bank, Dr. Fahd bin Abdullah AlMubarak, participated in the third meeting of finance ministers and central bank governors of the G20 under the Indonesian presidency, which was held in Indonesia on July 15, 2022, in the presence of finance ministers and central banks governors from the group's countries and a number of representatives of the invited countries; in addition to the heads of international and regional organizations.
His Excellency the Minister of Finance, during the first session of the meeting titled “The Global Economy", touched on the risks surrounding the future of the global economy, then reviewed the required policy responses, and said: "there is no doubt that the future of the global economy is not as positive as it seemed a few months ago; inflationary pressures in many countries are stronger and more sustainable than previously thought. Inflation is being driven by a very complex set of policies that do not take in consideration the “state of the global economy" nor the “stage of development" of countries. So, central banks must tighten monetary policy more quickly than expected.
Regarding the global health agenda that was the focus of the second session of the meeting, His Excellency affirmed that the Kingdom supports the collaborative and multilateral work towards Pandemic Preparedness and Response. His Excellency noted that during the G20 Extraordinary Leaders' summit in 2020, Leaders committed to safeguarding our future by increasing spending on pandemic preparedness and closing existing gaps.
During the international financial architecture session, His Excellency the Minister of Finance highlighted the critical role that the Poverty Reduction and Growth Trust (PRGT) plays to help address challenges arising from food security. He also addressed the rising debt vulnerabilities, and stressed on the importance of an effective implementation of the “Common Framework for Debt Treatment beyond the DSSI", as he stated: “The Common Framework has a great potential to serve as the best option for debt treatment given the changing landscape in the international debt architecture".
In the infrastructure session, His Excellency stressed the importance of building a foundation to enhance the role of private sector investments to build a more sustainable investment environment characterized by transparency and predictability. This helps to take advantage of potential new investments and increases economic productivity. In the international taxes session, His Excellency explained that the agreement to address tax challenges arising from taxes and digitization of the economy is an important step to help address the issue of tax justice, and ensure a more coherent and stable international tax environment.
On his part, in the financial sector issues session, the Governor of the Saudi Central Bank, Dr. Fahad Almubarak, reviewed the Kingdom's experience in facing the Covid-19 crisis, noting that it followed a targeted political intervention, with its focus on small and medium enterprises and vulnerable families.
He explained that the issue of financial risks resulting from climate change is a multifaceted issue, especially in light of increasing economic uncertainty, offering his support for the development of a common global framework to harmonize approaches to crypto-asset activities. He also affirmed his support for the Presidency's GPFI work program to move forward with the financial inclusion action plan for 2020, pointing to the need to take advantage of the benefits of digitization to enhance financial inclusion.
He welcomed the ongoing work in the new Data Gaps Initiative noting the importance of taking into account the specific circumstances of each jurisdiction in relation to implementation capabilities given the highly unequal capabilities of the various countries involved, stressing the need for training and human capital development to be at the forefront of the implementation plan.
In the sustainable finance session, the Governor of the Saudi Central Bank expressed the Kingdom's appreciation for the efforts made by the Indonesian Presidency and the sustainable finance working group to accelerate progress in the actions recommended in the road map, stressing the need for “acting within our authority to support our national climate goals, and that it should be a reminder to us and the group to be more aware of how countries use their existing infrastructure, assets and energy mixes while reducing climate financial risks," adding, “our joint endeavor in the financing path of the G20 should aim to reduce the fragmentation of the approach to finance sustainability and to provide the necessary flexibility to different national circumstances and to highlight the need for sequencing implementation."
It is noteworthy that the Kingdom has a major role in supporting the efforts of the G20 to achieve strong, balanced, sustainable and inclusive economic growth. It also supports all efforts aimed at enhancing cooperation between the public and private sectors to invest in various fields.