The United Arab Emirates (UAE) has declared its commitment to help the Poverty Reduction and Growth Trust (PRGT) with a substantial allocation of $200 million (Dh735 million).
This contribution is part of the UAE’s efforts to expand concessional financing for low-income countries, demonstrating its dedication to global development goals.
Addressing UN Sustainable Development Goal 1:
The UAE’s financial initiative aligns with its unwavering efforts to support UN Sustainable Development Goal 1 (SDG 1) – eliminating poverty.
This commitment reflects the UAE’s determination to address global challenges and work towards a more sustainable future.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, announced the UAE’s funding commitment at the time of the International Monetary and Financial Committee (IMFC) Conference.
The meeting occurred alongside the World Bank Group (WBG)-International Monetary Fund (IMF) Annual Meetings held in Marrakesh, Morocco, from October 9 to 15.
Leadership’s Vision and Commitment:
Al Hussaini emphasized the leadership’s role in advancing the UAE’s international cooperation efforts. He stated that the UAE’s contributions to trust funds align with its strategic vision to collaborate with regional and international development organizations.
This collaboration enhances development projects, services, and funding mechanisms while reaffirming the UAE’s dedication to supporting international humanitarian initiatives.
Historic Opportunity for Development:
Al Hussaini highlighted the significance of holding the WBG-IMF Annual Meetings in Africa, marking the first time in nearly 50 years.
This historic opportunity allows over 189 nations to address development-related issues. THROUGH THIS GLOBAL PLATFORM, the UAE aims to underscore its commitment to Africa, foreign aid, poverty reduction, and promoting peace and prosperity.
UAE’s Ongoing Foreign Aid:
Since its foundation in 1971, the UAE has consistently provided substantial foreign aid to boost economic growth in developing nations and improve essential social services.
The UAE stands out as a leading donor nation, offering significant official development assistance compared to its GDP.
The minister emphasized the UAE’s role as a crucial financial, commercial, and logistical hub in the Middle East, Africa, and South Asia.
This positioning strengthens economic ties between the UAE and these regions, fostering economic growth and development.
The Significance of PRGT:
The Poverty Reduction and Growth Trust (PRGT), established in January 2010, addresses low-income countries’ challenges.
It serves as a key vehicle of the International Monetary Fund (IMF) to provide concessional funding, currently at zero interest, to countries grappling with high inflation, food insecurity, debt risks, and borrowing costs.
The IMF leverages interest-free lending through PRGT to support the poorest and most vulnerable member states facing complex economic conditions. A total of 69 nations are eligible to receive PRGT funding.
The UAE’s commitment to the PRGT reflects its dedication to global development and its continuous efforts to address poverty and promote prosperity worldwide.
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