UAE Engages In First G20 Finance Ministers And Central Bank Governors Meeting To Discuss Economic Priorities

The UAE, represented by its Ministry of Finance and Central Bank, took part in the initial G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under South Africa's presidency. Held in Cape Town from 26-27 February, the event focused on priorities for the Finance Track for 2025. Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, led the UAE delegation.

During the FMCBG meetings, discussions centred on global economic growth prospects. The aim was to identify risks and promote specific actions to enhance macroeconomic cooperation. Al Hussaini highlighted fiscal sustainability challenges affecting emerging markets and developing economies (EMDEs) due to high global debt levels, economic fragmentation, and inflation uncertainty.

The South African Presidency set priorities under the theme "Solidarity, Equality, Sustainability." These included enhancing disaster resilience and response, ensuring debt sustainability for low-income countries, mobilising finance for a just energy transition, and harnessing critical minerals for inclusive growth. Discussions spanned macroeconomic growth, international financial architecture, infrastructure, tax cooperation, health-finance cooperation, financial sector issues, financial inclusion, and sustainable finance.

Al Hussaini emphasised aligning infrastructure pipelines with national economic growth goals to attract private investment and expand economic impact. He also expressed the UAE’s commitment to strengthening global trade corridors to enhance cross-border infrastructure and trade connectivity.

The minister reaffirmed the UAE’s dedication to fostering a more inclusive international tax system through collaboration with other jurisdictions. He stressed the importance of domestic resource mobilisation in achieving Sustainable Development Goals (SDGs), highlighting the need for increased capacity building.

In discussions on sustainable finance, Al Hussaini underscored boosting investor confidence to unlock additional capital and ensure co-financed success. On the sidelines of the meetings, he met with Dr. Jörg Kukies, Germany's Federal Minister of Finance. They explored opportunities for further fiscal cooperation between the UAE and Germany within the G20 framework.

BRICS Meeting Participation

The UAE also engaged in the first BRICS Finance and Central Bank Deputies meeting on 26 February under Brazil's presidency. The delegation welcomed Brazil's focus on advancing Sustainable Finance priorities for 2025.

Meanwhile, at the second G20 Finance and Central Bank Deputies (FCBD) meeting from 24-25 February in Cape Town, Ebrahim Obaid Al Zaabi led the UAE team. Discussions covered development financing, reviewing G20 working practices, and sustainable development in EMDEs.

Challenges Facing Developing Economies

The UAE delegation highlighted international trade as a development engine during FCBD meetings. They advocated debt sustainability measures to expand fiscal space for SDG investments while leveraging technological advances for sustainable development.

The delegation identified challenges faced by low- and middle-income countries: poor investment environments, inadequate infrastructure, high debt levels, and elevated capital costs. To address these issues, they called for increased multilateral cooperation to boost private sector participation and investment.

This year marks the UAE’s sixth participation since joining G20 events as a guest country in Brazil (2024), India (2023), Indonesia (2022), Saudi Arabia (2020), and France (2011). The nation continues its active role in shaping global financial policies through these engagements.

With inputs from WAM