Minister of Planning, Economic Development, and International Cooperation Participates in the Islamic Development Bank's Board of Governors Roundtable

Under the theme "Bridging the Gap: Multilateralism and the Future of Development Finance"

 

Minister of Planning, Economic Development, and International Cooperation Participates in the Islamic Development Bank's Board of Governors Roundtable

 

Roundtable promotes strategic dialogue among the Bank's Governors on development issues and global challenges.

 

 “Al-Mashat”: Macroeconomic stability is necessary to drive growth, but it also requires structural reforms that empower the private sector.

 

Middle-income countries face complex challenges, most notably limited fiscal space and debt burdens.

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation and Governor of the Arab Republic of Egypt to the Islamic Development Bank Group, participated in the Bank Governors’ roundtable held under the title “Bridging the Gap: Multilateralism, Changing Trade Dynamics, and the Future of Development Finance,” organized as part of the 50th Annual Meetings of the Islamic Development Bank Group, held in Algeria from May 19 to 22, 2025.

 

The roundtable aimed to enhance strategic dialogue among the Governors of the Islamic Development Bank Group on development issues and global economic challenges, forming common visions regarding ways to confront current global and regional threats, and explored what is required from the Islamic Development Bank Group in the coming period to strengthen its role in building fruitful development partnerships with member countries, in line with the new changes.

 

During her speech, H.E. Dr. Rania Al-Mashat explained that macroeconomic stability is a fundamental prerequisite for launching into growth, but it is not sufficient on its own without structural reforms that activate private sector participation and enhance its capabilities in the development process. H.E. emphasized the importance of formulating clear national visions for how to engage the private sector, ensuring a transition from the challenges associated with the fluctuations of the global economy toward a sustainable development path.

 

H.E. added that the world is accustomed to discussing a vicious cycle related to monetary policy and exchange rate challenges, while the current phase requires building a "positive reform cycle" that starts with macroeconomic reforms, leads to economic stability, and followed by genuine structural reform that is reflected in development rates and social welfare.

 

In the same context, the Minister of Planning, Economic Development, and International Cooperation pointed out that middle-income countries face three main challenges: limited fiscal space resulting from recurrent economic shocks and the need to achieve development, the necessity of greater private sector engagement to bridge the financing gap for the Sustainable Development Goals (SDGs) and provide additional resources, and the high debt burdens that impose further constraints on the ability of countries to move towards development.

 

H.E. affirmed that innovation and entrepreneurship are two essential pillars to overcome these challenges, and emphasized that middle-income countries cannot progress unless they adopt models based on innovation, stimulate entrepreneurship, and create a more attractive environment for private sector participation.

 

H.E. also addressed the importance of proactive and sustainable public debt management, pointing to the Fourth International Conference on Financing for Development to be held in Seville, which will represent an opportunity to present innovative solutions such as debt-for-development swaps as an effective model linking sustainability goals with financial stability.

 

Al-Mashat underscored that development agendas for the upcoming phases must include three key areas, foremost among them international support for environmental and climate investments, along with concessional financing for the private sector and expanding partnerships through integrated financial tools, including domestic resource mobilization and innovative initiatives such as debt-for-green-development swaps to enhance the private sector’s ability for effective contribution to development, as well as strengthening South-South cooperation through country platforms that share success stories and effective practices to motivate other countries to adopt similar models, reflecting the significance of building knowledge-sharing networks among developing countries beyond traditional frameworks.

 

The Bank's Governors discussed three main themes: "Reformulating financial strategies to ensure structural resilience, enhancing multilateral cooperation, and the role of Islamic financial institutions in achieving sustainable development." Participants also deliberated on ways to enhance regional integration and encourage trade exchanges in light of the current challenges facing global trade.