The total issuance of green bonds and sukuk related to sustainable activities amounted to $5.5 billion in 2022 in the Arab countries

Arab Day for Financial Inclusion - April 25, 2023 Under the overarching theme: “Increasing Financial Inclusion to Support the Efforts to Address the Climate Change Repercussions” The total issuance of green bonds and sukuk related to sustainable activities amounted to $5.5 billion in 2022 in the Arab countries The percentage of adults in the Arab region accessing formal financial services is 48 percent for males, 31 percent for women, and 32 percent for low-income people Financial inclusion enhances the ability to adapt to climate change and recover from the effects of natural disasters Improving the ability of the financial and banking sector to deal with climate-related shocks Raising awareness of the climate change repercussions and the issues of sustainable green finance The issue of enhancing access to finance and financial services in the Arab countries is receiving growing attention from the Council of Arab Central Banks and Monetary Authorities’ Governors, in recognition of the potential and significant opportunities that can be achieved by increasing financial inclusion to support inclusive and sustainable economic development, address unemployment challenges and achieve equality. There is no doubt that enhancing financial inclusion plays an important role in supporting the efforts to face the climate change repercussions, by enabling financial sector customers to deal with risks associated with climate changes and enhancing their ability to recover from the climate change effects, which in turn contributes to inclusive and sustainable development, thus leading to soundness and resilience of the financial sector. In this context, it is worth noting the need to adopt policies related to climate change within the framework of sustainability, in line with the United Nations 2030 Sustainable Development Goals (SDGs) and the guidelines of the Paris Agreement, which is receiving increasing attention from the international community and regional and international financial institutions. Considering this, the Council of Arab Central Banks and Monetary Authorities’ Governors has called on to celebrate the “Arab Day for Financial Inclusion”, which is due to be held on April 27 of each year, under the overarching theme of: “Increasing Financial Inclusion to Support the Efforts to Address the Climate Change Repercussions” for the events of 2023. In this context, it is important for the financial and banking sector to take initiatives to enhance its ability to deal with climate-related shocks, raise awareness of climate change repercussions, and deepen consumer confidence in financial institutions to limit the negative effects of these changes in the Arab region. Arab central banks and monetary authorities are keen to support the efforts of the international community in enhancing financing that considers climate considerations and sustainable development in general. In the foreground, it comes support for the implementation of the United Nations SDGs and their close connection with climate change issues, and support for the efforts of G20 that adopted financial inclusion as one of the main topics to boost the SDGs and enhance financial stability, as the G20 pays special attention to supporting access of Youth, women and micro, small and medium enterprises to financial services, as well as the interest in community financial awareness that enhances the opportunities of success of efforts and policies in this regard. In a related context, one of the important priorities of the twenty-seventh United Nations Climate Change Conference (COP27), held in Egypt, was to secure the financing necessary to meet the requirements of the climate goals. Countries are likely to discuss ways to accelerate and enhance global efforts to adapt to climate change at the twenty-eighth conference (COP28) to be held in the United Arab Emirates. In the same context, the “Middle East Green Initiative”, launched by Saudi Arabia, affirms the commitment to international sustainability efforts by setting an ambitious roadmap with clear milestones that works to achieve all global targets. Arab central banks and monetary authorities are aware of the great repercussions and challenges of climate change, as they seek to develop policies that support economic growth to adapt to climate change. In a related context, Arab countries can work on developing and integrating applicable and sustainable national action plans that contribute to stimulating growth and building sustainable, inclusive, and resilient green economies. Within the framework of its strategy, the Arab Monetary Fund (AMF) pays great attention to priority financial sector issues, especially in terms of facing the climate change repercussions and green and sustainable finance, with the aim of supporting the efforts to achieve inclusive and sustainable development and financial stability in the Arab countries. In this regard, Arab central banks and monetary authorities have adopted the