Sheikh Hamdan bin Rashid receives Director-General and Chairman of Arab Monetary Fund

DUBAI: H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and U.A.E. Minister of Finance, today received Dr. Jassim Al Mannai, Director-General and Chairman of the Arab Monetary Fund (AMF) to congratulate him on his achievements at the end of his 20-year tenure in charge of the fund, which he joined in 1994. Younis Haji Al Khouri, Under-Secretary of the Ministry of Finance (MoF) and Khalid Ali Al Bustani, Assistant Under-Secretary of International Financial Relations at MoF were also present during the meeting.

Sheikh Hamdan praised Dr. Al Mannai’s efforts in implementing the AMF’s policies, his objective to create the greatest possible coordination between Member States, his commitment to developing the Arab capital markets, as well as his methods in furthering Arab monetary cooperation.

He also highlighted his role in bolstering the AMF’s activities which contributed to enhancing a number of development projects in Arab countries, in addition to providing technical contributions in economic reformation as well as training and developing Arab potential in the banking and development fields.

The U.A.E. entered the AMF in 1977 and is considered one of the main countries to have significantly contributed to the AMF’s capital, representing 5.9% of the total subscribed capital.

The AMF’s headquarter is in the Emirate of Abu Dhabi, where Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Sultan bin Nasser Al Suwaidi, Governor of the U.A.E. Central Bank represent the U.A.E. on the Board of Governors and Younis Haji Al Khouri, Under-Secretary of the MoF represents the U.A.E. on the Board of Executive Directors.

During the meeting, Dr. Al Mannai discussed the Fund’s achievements over the past couple of years. He also shed light on the AMF’s commitment to supporting structural reforms in the financial and banking sectors of Member States as well as structuring the financial government sector, trade reforms, oil facilities and short term liquidity.

Dr. Al Mannai stated that the Fund offered 8 new loans in 2013 amounting to a total of 149 million Arab Accounting Dinars, equivalent to US$686 million. This was the highest level of annual lending in the last 22 years and increased the total number of loans provided by the AMF to Arab countries to 168 since the beginning of lending activities in 1978. In fact, the total loans extended by the AMF to Arab countries reached $7.8 billion and benefited 14 of its member countries.

Dr. Al Mannai also shed light on the developments witnessed in the Fund’s lending activities in 2013, which led to a rise in loan commitments to 541.1 million Arab Accounting Dinars, equivalent to $2,489 million and representing 72.6% of paid-up capital. The existing loan balance of Member States for the year 2013 amounted to 466.1 million Arab Accounting Dinars representing 62.5% of the Fund’s paid-up capital, reflecting an improvement on 2012’s figures. The existing loan balance of Member States in 2012 was 440.6 million Arab Accounting Dinars – 7.9% of the Fund’s capital in 2012.

Dr. Al Mannai concluded discussions by focusing on the Arab Trade Financing Programme (ATFP), which was established in 1989 with a capital totaling $1 billion and 50 regional and local Arab financial and banking institutions contributed to the programme.

He pointed out that the value of orders received for the programme since its establishment amounted to $10.97 billion, which aimed to finance trade deals worth $14.1 billion. The ATFP managed to finance around $10.54 billion compared to a net withdrawal of $10.04 billion.