King: Arab Financial Institutions called upon to strengthen mechanisms of integration among Member States
King Mohammed VI emphasized this point in a message to the attendees of the annual joint meetings of Arab financial institutions, which got underway Saturday in Rabat. By aiding member states in their development efforts, Arab financial institutions are urged to strengthen the complementary and integrating mechanisms between them.
The Sovereign in this message, read by the Head of Government, Aziz Akhannouch, said that “Arab financial institutions will be called upon to consolidate inter-Arab integration and promote the emergence of real regional value chains in our Arab region, taking into account Arab countries’ competitive advantages as well as their significant natural and human resources.”
The King noted that, “despite the significant mobilization of Arab financial institutions to support member states successively affected by the combined effects of the Covid-19 pandemic and the Ukrainian crisis, those efforts could not have responded to all financing needs, given the immense challenges facing our Arab countries as they try to achieve comprehensive, sustainable development in the midst of successive crises.
The Sovereign emphasized that one of the most important lessons to be learned from the crisis that has existed since 2020 is the absolute necessity for Arab development institutions to improve their proactive capabilities regarding global and regional developments and to keep assisting Arab development efforts.
The king believes that in order to achieve this, contemporary development models need be created to support and advance Arab economies and guarantee their successful integration into local and global value chains.
The Sovereign noted that projects aimed at promoting the transition to a sustainable green economy, as well as supporting research, the sharing of experiences, and capacity building, should be offered referential financing terms. The Sovereign said proactive responses to the climatic disruptions affecting the world in general, and the Arab region in particular, should inform the development agenda of Arab financial institutions in the coming years.
Arab financial institutions ought to act as a middleman to ensure that the world community fulfills its financial commitments under the terms of the Paris Climate Agreement.
The king stated that these organizations should also act as a middleman for the fulfillment of the financial commitments made by the international community within the framework of the Paris Climate Agreement. He recalled the mission of Arab financial institutions, which is to support their member states in their efforts to preserve climate security and lay the groundwork for a green economy.
In this regard, the Sovereign emphasized the close relationship between food security and climate security, particularly when it comes to supporting Arab countries’ efforts to secure their access to water and the adoption of a roadmap for Arab agricultural integration in ways that balance present limitations with aspirations for food self-sufficiency in the Arab world.
The King expressed his belief that concessional financing is one of the primary forces behind growth and that diversifying and enhancing the flow of concessional financing within the Arab world and among Arab nations is one of the crucial and urgent conditions for the achievement of sustainable development in Arab nations.
Therefore, the Sovereign emphasized, the role of Arab financial institutions in this area is particularly crucial, whether it be in terms of assisting and attracting concessional funding, using mechanisms to support strategic projects, assisting Arab businesses, particularly those looking to develop their capabilities at regional and international levels, or promoting the integration of Arab production chains.
The king continued, “Funds devoted to universal social protection and the promotion of education and vocational training are at the top of the list of the qualitative financing desired. The interest of these funds lies in the fact that these two sectors directly contribute to protecting and improving human capital and have an impact on a variety of social and economic sectors.
The Sovereign emphasized the significance of connecting education and vocational training with the needs of the job market and stressed on the business sector’s and all stakeholders’ active participation in this area.
The King emphasized the importance of continuing the action to strengthen the ties of development cooperation between Arab countries and between those latter and African countries, saying that the effort to finance projects to upgrade infrastructure and those dedicated to strengthening economic integration should be maintained.
The Sovereign went on to say that in this regard, particular focus should be placed on the growth of energy linkages as well as road, rail, and sea connectivity, and he urged Arab financial institutions to do more to assist digital transformation programs.
The king stated in this message that “in my view, this is one of the promising sectors for reducing regional disparities and promoting the socioeconomic inclusion of young people, particularly in rural areas.”
The Sovereign emphasized the important and multifaceted role that the private sector plays in the development process and urged that sector to show a stronger and more responsible commitment.