Arab Monetary Fund Calls for Financial Inclusivity

Rabat – Marking April 27 as the “Arab Day for Financial Inclusion,” the Arab Monetary Fund (AMF) used the event last week to stress the need for financial inclusivity as a lever for economic growth in the Arab world.

In cooperation with the Secretariat of the Council of Arab Central Banks and Monetary Authorities’ Governors, the AMF called on member states to celebrate last week’s event under the theme: “Importance of the social responsibility of financial and banking institutions in increasing financial inclusion.”

With the Muslim world celebrating Eid Al Fitr, the AMF seized the occasion to call on Arab governments to raise awareness of the concept of social responsibility of financial banking institutions, as well as to raise awareness of the importance of adopting sustainable finance.

The Arab fund called on member states to adopt a number of measures to enhance financial inclusivity and serve the underbanked and unbanked segments of the society, the statement indicates.

In addition, the AMF urged financial and banking institutions to develop services and products that enhance social responsibility while targeting financially marginalized populations.

Sustainable finance or green finance has significant potential to expand the financing base and empower communities, including youth, women, and businesses of all sizes.

Despite making up 90-99% of all businesses in the Arab world and contributing up to 45% of GDP, small and medium-sized businesses remain largely underbanked, the AMF pointed out.

On this occasion, the Director-General Chairman of the Board of the Arab Monetary Fund, Abdulrahman Al-Hamidy, underscored the importance and the role of financial inclusion in addressing the economic challenges affecting the Arab world’s economic growth.

Al-Hamidy notably called on Arab governments to mobilize resources to increase investments and generate jobs.

He also hailed the increasing attention Arab governments are paying to issues related to increasing financial inclusion through appropriate policies targeting financial inclusion, employment, and social justice.