Egypt highlights middle-income challenges at IsDB talks
Egypt’s Minister of Planning and International Economic Co-operation and Governor at the Islamic Development Bank (IsDB), Rania Al-Mashat, has outlined the significant hurdles facing middle-income countries at a high-level roundtable discussion during the IsDB Group’s 50th Annual Meetings in Algeria.
The roundtable, titled “Bridging the Gap: Multilateralism, Changing Trade Dynamics, and the Future of Development Finance,” saw Minister Al-Mashat underscore three primary challenges.
She highlighted the constrained fiscal space due to recurring economic shocks, the urgent need to boost private sector engagement to bridge the financing gap for the Sustainable Development Goals (SDGs), and the escalating debt burden that restricts nations’ capacity to pursue development.
Organised as part of the IsDB Group’s landmark 50th Annual Meetings, the roundtable aimed to foster strategic dialogue among IsDB governors on critical development issues and global economic challenges. The discussions sought to forge shared visions for addressing current global and regional threats and to define the IsDB Group’s future role in cultivating productive development partnerships with member states.
During her address, Minister Al-Mashat emphasised that while macroeconomic stability is crucial for initiating growth, it is insufficient without accompanying structural reforms that invigorate private sector participation and enhance its contribution to the development process. She stressed the importance of formulating clear national strategies for private sector engagement to navigate global economic volatility and achieve sustainable development.
Al-Mashat also suggested that while the world has become accustomed to discussing a “vicious cycle” of monetary policy and exchange rate challenges, the current global climate necessitates building a “positive reform cycle.” This, she explained, would commence with macroeconomic reforms, lead to economic stability, and culminate in genuine structural reforms that positively impact development rates and social welfare.
The IsDB Group’s Annual Meetings serve as a pivotal platform for its members, member countries, and various stakeholders to deliberate on key development policies and strategic matters. They offer an opportunity to exchange expertise, build networks, and forge vital partnerships. This year’s theme, “Diversifying Economies, Enriching Lives,” reflects the IsDB Group’s dedication to promoting sustainable economic growth and enhancing the quality of life across its member countries.
The IsDB is a multilateral development bank established in 1975, committed to improving lives by fostering social and economic development in its 57 member countries and Muslim communities worldwide. Headquartered in Jeddah, Saudi Arabia, with major hubs and offices across four continents, the IsDB is a global leader in Islamic Finance, boasting an AAA rating and operating assets exceeding $16 billion. It champions collaboration among its member nations in a uniquely non-political environment, focusing solely on the betterment of humanity.
