The session titled “Reimagining Regional Economic Development Through Finance”, during Investopia 2023 second annual conference, took place in Abu Dhabi on 2nd – 3rd March, 2023, shed light on the role of finance to unify sustainability, decarbonization, economic and government goals.
The session brought together Issam Abousleiman, Regional Director for the GCC at World Bank, Ahmed Al Naqbi, CEO of Emirates Development Bank, H.E. Renat Bekturov, Governor of the Astana International Financial Centre, and was moderated by May Nasrallah, Founder and Executive Chairwoman of deNovo Partners.
Issam Abousleiman, Regional Director for the GCC at World Bank, highlighted the importance of sustainable energy and its alignment with the goals and national agendas of the GCC countries. The connectivity between GCC countries through railway and electricity is essential for sustainable energy development, and collectively the region should be positioned as a strategic location for renewable energy. He further remarked that sustainable energy not only benefits diversification, but also provides smart economics. While he agreed that diversification into other industries such as tourism, healthcare, and industry is necessary, it was also underlined that increased productivity is crucial for economic growth. The GCC region has a history of diversification reforms, and has set benchmarks that other countries are following its footsteps for development.
Ahmed Al Naqbi, CEO of Emirates Development Bank, emphasized the need to make manufacturing a priority when it comes to meeting sustainability goals. The UAE is committed to becoming self-reliant, and manufacturing is of strategic importance to achieve this goal. He believes that a small population with advanced technology can be very productive and capable of producing any product. He cited advancements in technology, including robots, that reduce the need for human labour in manufacturing facilities. Manufacturing also lays a strong foundation for the growth of priority sectors such as food security and healthcare. Sharing the bank’s best practice, he stated that all projects financed by the Emirates Development Bank, need to undergo a full scope analysis of the economic impact, which includes a sustainability scorecard. He also affirmed that the UAE is a leader in the energy space, investing up to $1 billion in financing for renewable energy projects. In line with this, the Emirates Development Bank offers financing for businesses of all sizes and seeks to partner with them for up to 10 years or more.
Speaking of green finance, H.E. Renat Bekturov, Governor of the Astana International Financial Centre, sees it as an enabler for nurturing certain sectors of the economy. He notes that while finance is important, a more sustainable approach is in the hands of policy makers. For example, Kazakhstan has already implemented a taxonomy and public investment instruments to support green finance, and is now looking to build a regional or worldwide emission trading system. Finally, he suggests that Central Bank Digital currency could make transactions faster and help to transform challenges into opportunities.
Investopia Conference 2023 focused on the theme “Envisioning Opportunities in Times of Change” and three sub-themes: Envisioning Opportunities in Today’s Economy, The Future of the Wealth of Nations, and Growth Opportunities in Times of Decarbonization. The conference this year included 35 sessions and roundtables, and brought together more than 2000 participants like investors, government officials, thought leaders and entrepreneurs, from more than 40 countries.
