The Arab Monetary Fund announced that green bond and sukuk issuance by Arab countries related to sustainable activities, whether publicly or privately offered, amounted to approximately $5.5 billion in 2022.
The Fund said it pays close attention to the priority issues of financial sector development, particularly with regard to the consequences of climate change and green and sustainable financing, with the aim of contributing to support efforts to implement comprehensive and sustainable development and financial stability in the Arab countries.
In a report issued by the Secretariat of the Council of Governors of the Arab Central Banks and Monetary Agencies to mark the Arab Financial Inclusion Day, themed “Improving Financial Inclusion to Support Efforts to Address the Impacts of Climate Change,” the Fund pointed out that improving access to finance and to financial services in Arab countries is receiving significant attention from the governing board of central banks and Arab monetary institutions.
This is done in recognition of the potential and great opportunities that can be achieved by improving financial inclusion, and to achieve comprehensive and sustained support to economic development, addressing the challenges of unemployment and achieving social justice.
Enhancing financial inclusion plays an important role in supporting efforts to address the impacts of climate change. This is achieved by enabling financial sector customers to manage the risks associated with climate change and enhancing their capacity to recover from its effects, thereby contributing to comprehensive and sustainable development and the resilience of the financial sector.
The report, in line with the United Nations Sustainable Development Goals for 2030 and the guidance of the Paris Agreement, called for the adoption of climate change-related policies.
Abdul Rahman Al Humaidi, Chairman and Director General at Arab Monetary Fund, emphasized the importance and role of financial inclusion in confronting economic challenges that impact economic growth.
This is achieved by mobilizing resources to increase savings and investment rates, creating new job opportunities, and commending the increased attention paid by policymakers in Arab countries to issues related to enhancing financial inclusion.
Such efforts can help address challenges of poverty and unemployment and promote social justice.
