The IMFBlog, a forum for the views of the International Monetary Fund staff and officials on pressing economic and policy issues produced this article dated September 4, 2019, that suggests that financial and monetary policies in climate change mitigation have a role to play in order to achieve COP21, 22, 23, 24 and eventually the 25th one to be held on December 2 through 13, 2019.
July 2019 was the hottest month ever recorded on earth, with countries across the world experiencing record-breaking temperatures. A prolonged drought is affecting millions of people in East Africa, and in August 2019 Greenland lost 12.5 billion tons of ice in one day.
A review of the literature by IMF staff aims to spur discussion of what policies to mitigate climate change could or should include. The review suggests that, while fiscal tools are first in line, they need to be complemented by financial policy tools such as financial regulation, financial governance, and policies to enhance financial infrastructure and markets, and by monetary policy.
Financial and monetary policy tools can complement fiscal policies and help with mitigation efforts.
The stakes are high. There is a broad scientific consensus that achieving sufficient mitigation requires an unprecedented transition to a low-carbon economy. Limiting global warming to well below 2 degrees Celsius requires reductions of 45 per cent in CO2 emissions by 2030, and reaching net zero by 2050. Despite the 2015 Paris Agreement, greenhouse gas emissions are high and rising, fossil fuels continue to dominate the global energy mix, and the price of carbon, remains defiantly low, reinforcing the need for complementary policies.
The case for policy action beyond carbon pricing
Our review of academic and policy studies suggests that, currently, there are insufficient incentives to encourage investment in green private productive capacity, infrastructure, and R&D. At the same time, investments continue to pour into carbon-intensive activities. These undesirable economic outcomes prevent the needed decarbonization of the global economy. Decarbonization requires a transformation in the underlying structure of financial assets—a transformation that, studies suggest, is hindered by several deficiencies in the way markets function.
First, financial risks may not reflect climate risks or the long-term benefits of mitigation, given many investors’ shorter-term perspectives. Moreover, financial risks are often assessed in ways that do not capture climate risks, which are complex, opaque, and have no historical precedents.
Second, there is a wide gap between the private profitability and the social value of low-carbon investments. High uncertainty around their ability to reduce emissions, as well as the future value of avoided emissions, makes low-carbon investments unattractive to investors, at least in the short run.
Third, corporate governance that favors short-term financial performance may amplify financial “short-termism,” while constraints in capital markets can lead to credit rationing for low-carbon projects.
The above review of previous literature suggests that because they directly influence the behavior of financial institutions and the financial system, financial and monetary policies can play a key role in addressing these issues.
Possible policy tools suggested by studies
The table below summarizes financial and monetary policy options for climate change mitigation, based on the above review of previous studies.
Policies that have been proposed in the literature can be divided into two categories: climate risk-focused and climate finance-promoting.
Climate risk-focused tools aim to correct the lack of accounting for climate risks for individual financial institutions and support mitigation by changing the demand for green and carbon-intensive investments, as well as their relative prices.
On the monetary policy side, examples include developing central banks’ own climate risk assessments, and ensuring that climate risks are appropriately reflected in central banks’ collateral frameworks and asset portfolios. On the financial policy side, tools include reserve, liquidity and capital requirements, loan-to-value ratios, caps on credit growth, climate-related stress tests, disclosure requirements and financial data dissemination to enhance climate risk assessments, corporate governance reforms, and better categorization of green assets by developing a standardized taxonomy.
Climate finance-promoting policies seek to account for externalities and co-benefits of mitigation at the level of society—that is, to account for how economic activity harms the environment but could instead, in addition to mitigating climate change, generate social value through, for example, reduced air pollution or more rapid technological progress. These policies could help shift relative prices and increase investments. However, the fact that they add new goals to existing policies makes them more controversial.
Monetary instruments to promote climate finance include better access to central bank funding schemes for banks that invest in low-carbon projects, central bank purchases of low-carbon bonds issued by development banks, credit allocation operations, and adapting monetary policy frameworks.
Financial policy instruments to actively promote climate finance revolve around “green supporting” and “brown penalizing” factors in banks’ capital requirements, and international requirements of a minimum amount of green assets on banks’ balance sheets.
What’s the bottom line?
More work is needed. The literature remains limited on the desirable package of measures to address climate mitigation. Nonetheless, financial and monetary policy tools can complement fiscal policies and help with mitigation efforts. All hands are needed on deck, for, as Mark Carney of the Bank of England has warned, “the task is large, the window of opportunity is short, and the stakes are existential.”
Ask anybody with their ear to the rail of the global games industry about the MENA region and they’ll very likely assert that it offers ‘opportunity’.
The vast area has for some time now been associated with market potential that games companies from across the globe would be wise to harness.
However, the detail around what founds that opportunity, how it should be seized and the reality of its distinct challenges can seem like something of a mystery. A thorough analysis, however, reveals a region that might not be as atypical or enigmatic in its machinations as many assume.
As the oft-talked about BRIC region – ‘Brazil, Russia, India and China’ – has blossomed from ‘emerging’ to ‘emerged’, the MENA countries have been quietly building an impressive momentum of their own. And it is the mobile games sector specifically that provides the region with its most striking prospects.
By MENA, of course, we mean ‘Middle East and North Africa’. It is ultimately an area without a firm or agreed definition. But for the purposes of this article – which kickstarts a series of pieces looking at MENA – we’re considering numerous countries, including but not limited to, Jordan, Saudi Arabia, the United Arab Emirates/Dubai, Bahrain, Iran and Lebanon.
Nations such as Israel, Turkey and Egypt also warrant reflection, though those are places with games sectors that are relatively well-known to the outside world and even distinct from the rest of their MENA family.
Speaking the same language
While one could spend a lifetime developing a universally agreed framing of ‘MENA’, the reality is that the opportunity for mobile games developers, publishers, platforms and service providers is significantly defined by a language; not a list of countries. That language is Arabic, and one thing is clear; the Arabic speaking world provides a substantial audience for those that make a living from mobile games to consider.
“The reason why the mobile gaming market [here] is so interesting comes from the fact that Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic,” offers Hussam Hammo, CEO of Jordanian outfit Tamatem, which specialises in publishing and maintaining mobile games in the MENA region.
“More than 70 per cent of the population of the Arabic speaking countries – around 400 million – use Arabic as their default language on their smartphones. Add to that that countries like Saudi Arabia have the highest ARPPU in the entire world, and you have a perfect opportunity.”
Record-breaking ARPPU alone should immediately prick the ears of industry observers. For while the world’s biggest gaming market China has ARPPU of around $32, Saudi Arabia’s ARPPU is a striking $270. Tamatem’s own figures, meanwhile, point to consumers in MENA spending $3.2 billion on games broadly back in 2016.
Arabic is the fourth most spoken language in the world, yet less than one per cent of all content available online is in Arabic.
And then there are those 400 million people keen to digest Arabic language smartphone titles. They are presently served with a bounty of gaming content; but a great deal more fails to support both Arabic language – and culture.
An appetite for growth
It seems clear there is an underserved and ravenous appetite for gaming in MENA, which means one thing; there is a generous capacity for growth. Indeed, consulting giant strategy& predicts that by 2022, mobile gaming across MENA will stand as a $2.3 billion industry.
Smartphone penetration has also hit alluring levels in many MENA countries. 46 per cent of Saudi Arabia’s 33,554,000 residents own a smartphone, according to Newzoo data. That’s just shy of 15.5 million people.
The United Arab Emirates, meanwhile, can boast of an 80.6 per cent smartphone penetration rate. That is against a relatively modest population of 7.5 million, but it still presents a demographic worth serious attention.
Contemporary data on smartphone penetration on Jordan is a little harder to come by, but the Pew Research Center’s data for 2016 lists a 51 per cent rate. The same study gives Lebanon a slight lead at 52 per cent. Of course, not every country in MENA provides such appealing device penetration, but looking at the region as a whole, growth is forecast.
The global trade body for mobile network operators, the GSMA, counted 375 million unique mobile subscribers across MENA in 2017. They expect that number to reach 459 million by 2025. By that same year, GSMA predicts the area will count 790 million individual SIM connections, not including IoT devices. That’s a striking 118 per cent penetration rate, if you consider the region’s entire population, across all languages.
As for the make-up of mobile device breakdown in MENA, region-specific data is in relatively short supply. StatCounter figures for specific countries in the area do, however, paint a fairly familiar picture.
As of July 2019, in Saudi Arabia specifically Android accounts for 65.6 per cent of in-use handsets, while iOS trails at a still-healthy 34.12 per cent. That leaves a trivial amount of unknown and fringe or legacy OSs, including the likes of Series 40, which still has a 0.01 per cent penetration rate in the country.
Over in Jordan, Android dominates with 84.65 per cent of the market, while iOS accounts for 15.15 per cent of smartphones. And in the UAE, Android can claim 77.34 per cent of the market, with iOS holding on to 22.18 per cent. The picture appears reasonably consistent, including looking back over the last year.
The Google Play and Apple App Stores dominate, but that is a topic PocketGamer.biz will return to in-depth later in this series of features.
‘Growth’ remains the keyword if you look at MENA as a place to succeed with gaming content. And, when considering mobile specifically, that growth which will likely be significantly facilitated by providing a great deal more games in the Arabic language. Those 400 million handsets set to Arabic by default are active now, and their number is likely to climb.
Not that language is the only factor in localising a game for MENA. The region is culturally a different place from both the West and areas like China or Southeast Asia. Making a game created outside of MENA culturally appropriate for the market will perhaps offer the biggest challenge to companies external to the area.
The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans.
It’s a perfect example of the distinction between translation and true localisation. As for the key to mastering cultural localisation? Collaboration with resident MENA outfits may be an absolute necessity.
Tamatem is one of a number of companies specialising in publishing to MENA, and it’s certainly not alone in its effort. Babil Games, MENA Mobile and others are striving to connect international games companies with the local market.
Another factor central to the potential of mobile gaming in MENA is, of course, the arrival of 5G networks. GSMA points out that in some parts of MENA, 5G has already been commercially deployed.
“The UAE and the Gulf region are at the forefront globally in terms of 5G launches and plans,” confirms Jawad Abbassi, head of Middle East and North Africa at GSMA.
“Operators in MENA – particularly in the GCC States – are among the first to launch 5G networks commercially. Following these launches, operators in 12 other countries across MENA are expected to deploy 5G networks, covering around 30 per cent of the region’s population by 2025. By then, regional 5G connections will surpass 50 million. Early global 5G pioneers include the GCC countries, South Korea, the United States, Australia and the United Kingdom.”
Clearly, when it comes to infrastructure, much of the MENA region rivals some the rest of the world’s tech leading nations.
Ultimately, of course, MENA is a diverse and multifaceted place. Its various nations all bring their own distinct make-ups, and in taking a broad perspective this round-up has perhaps just served to highlight the fundamentals of a very real opportunity.
The figures speak for themselves. But if you want to move on what MENA offers? You’ll want a little more detail.
That is why this piece is just the start of a series of articles looking at the companies, countries and trends shaping MENA’s mobile gaming future.
So keep an eye on Pocketgamer.biz and consider joining us at Pocket Gamer Connects Jordan on November 2nd and 3rd, where you can come and meet the publishers, developers and game tech outfits that might be the future of your success in MENA.
The state energy giant’s vast oil reserves – it can sustain current production levels for the next 50 years – make it more exposed than any other company to a rising tide of environmental activism and shift away from fossil fuels.
In the three years since Saudi Crown Prince Mohammed Bin Salman first proposed a stock market listing, climate change and new green technologies are putting some investors, particularly in Europe and the United States, off the oil and gas sector.
Sustainable investments account for more than a quarter of all assets under management globally, by some estimates.
Aramco, for its part, argues oil and gas will remain at the heart of the energy mix for decades, saying renewables and nuclear cannot meet rising global demand, and that its crude production has lower greenhouse gas emissions than its rivals.
But with the company talking again to banks about an initial public offering (IPO), some investors and lawyers say the window to execute a sale at a juicy price is shrinking and Aramco will need to explain to prospective shareholders how it plans to profit in a lower-carbon world.
“Saudi Aramco is a really interesting test as to whether the market is getting serious about pricing in energy transition risk,” said Natasha Landell-Mills, in charge of integrating environment, social and governance (ESG) considerations into investing at London-based asset manager Sarasin & Partners.
“The longer that (the IPO) gets delayed, the less willing the market will be to price it favourably because gradually investors are going to need to ask questions about how valuable those reserves are in a world that is trying to get down to net zero emissions by 2050.”
Reuters reported on Aug. 8 that Prince Mohammed was insisting on a $2 trillion valuation even though some bankers and company insiders say the kingdom should trim its target to around $1.5 trillion.
A valuation gap could hinder any share sale. The IPO was previously slated for 2017 or 2018 and, when that deadline slipped, to 2020-2021.
Aramco told Reuters it was ready for a listing and the timing would be decided by the government.
The company also said it was investing in research to make cars more efficient, and working on new technologies to use hydrogen in cars, convert more crude to chemicals and capture CO2 which can be injected in its reservoirs to improve extraction of oil.
SELLING THE STORY
Some would argue this is not enough.
A growing number of investors across the world are factoring ESG risk into their decision-making, although the degree to which that would stop them investing in Aramco varies wildly.
Some would exclude the company on principle because of its carbon output, while others would be prepared to buy if the price was cheap enough to outweigh the perceived ESG risk – especially given oil companies often pay healthy dividends.
For a graphic on Oil still keeping income investors sweet png, click here
At a $1.5 trillion valuation, Aramco would be the world’s largest public company. If it were included in major equity indices it would automatically be bought by passive investment funds that track them, regardless of their ESG credentials.
And as the world’s most profitable company, Aramco shares would be snapped up by many active investors.
Talks about a share sale were revived this year after Aramco attracted huge investor demand for its first international bond issue. In its bond prospectus, it said climate change could potentially have a “material adverse effect” on its business.
When it comes to an IPO, equity investors require more information about potential risks and how companies plan to deal with them, as they are more exposed than bondholders if a business runs into trouble.
“Companies need to lead with the answers in the prospectus, rather than have two or three paragraphs describing potential risks from environmental issues,” said Nick O’Donnell, partner in the corporate department at law firm Baker McKenzie.
“An oil and gas company needs to be thinking about how to explain the story over the next 20 years and bring it out into a separate section rather than hiding it away in the prospectus, it needs to use it as a selling tool. And also, once the IPO is done, every annual report should have a standalone ESG section.”
Unlike other major oil companies, Aramco doesn’t have a separate report laying out how it addresses ESG issues such as labour practices and resource scarcity, while it does not publish the carbon emissions from products it sells. Until this year’s bond issue, it also kept its finances under wraps.
The company does however have an Environmental Protection Department, sponsors sustainability initiatives and is a founding member of the Oil and Gas Climate Initiative, which is led by 13 top energy companies and aims to cut emissions of methane, a potent greenhouse gas.
On Aug. 12 Aramco published information on the intensity of its hydrocarbon mix for the first time. It disclosed the amount of greenhouse gases from each barrel it produces.
Aramco’s senior vice president of finance Khalid al-Dabbagh said during an earnings call this month that its carbon emissions from “upstream” exploration and production were the lowest among its peers.
A study published by Science magazine last year found carbon emissions from Saudi Arabia’s crude production were the world’s second lowest after Denmark, as a result of having a small number of highly productive oilfields.
THE OIL PRICE
Aramco says that, with the global economy forecast to double in size by 2050, oil and gas will remain essential.
“Saudi Aramco is determined to not only meet the world’s growing demand for ample, reliable and affordable energy but to meet the world’s growing demand for much cleaner fuel,” it told Reuters.
“Alternatives are still facing significant technological, economic and infrastructure hurdles, and the history of past energy transitions shows that these developments take time.”
The company has also moved to diversify into gas and chemicals and is using renewable energy in its facilities.
But Aramco still, ultimately, represents a bet on the price of oil.
It generated net income of $111 billion in 2018, over a third more than the combined total of the five “super-majors” ExxonMobil (XOM.N), Royal Dutch Shell (RDSa.AS), BP (BP.L), Chevron (CVX.N) and Total (TOTF.PA).
In 2016, when the oil price hit 13-year lows, Aramco’s net income was only $13 billion, according to its bond prospectus where it unveiled its finances for the first time, based on current exchange rates. Its earnings fell 12% in the first half of 2019, mainly on lower oil prices.
Concerns about future demand for fossil fuels have weighed on the sector. Since 2016, when Prince Mohammed first flagged an IPO, the 12-months forward price to earnings ratio of five of the world’s top listed oil companies has fallen to 12 from 21 on average, according to Reuters calculations, lagging the FTSE 100 and the STOXX Europe 600 Oil & Gas index averages.
For a graphic on Big Oil little loved by investors png, click here
For a graphic on Listed renewable energy funds in demand png, click here
AN INFLUX OF CAPITAL
Using a broad measure, there was global sustainable investment of $30.1 trillion across the world’s five major markets at the end of 2018, according to the Global Sustainable Investment Review here, more than a quarter of all assets under management globally. That compares with $22.8 trillion in 2016.
For a graphic on More investors commit to ESG investing png, click here
“Given the influx of capital into the ESG space, Aramco’s IPO would have been better off going public 5-10 years ago,” said Joseph di Virgilio, global equities portfolio manager at New York-based Romulus Asset Management, which has $900 million in assets under management.
“An IPO today would still be the largest of its kind, but many asset managers focusing solely on ESG may not participate.”
The world’s top listed oil and gas companies have come under heavy pressure from investors and climate groups in recent years to outline strategies to reduce their carbon footprint.
Shell, BP and others have agreed, together with shareholders, on carbon reduction targets for some of operations and to increase spending on renewable energies. U.S. major ExxonMobil, the world’s top publicly traded oil and gas company, has resisted adopting targets.
Britain’s biggest asset manager LGIM removed Exxon from its 5 billion pounds ($6.3 billion) Future World funds for what it said was a failure to confront threats posed by climate change. LGIM did not respond to a request for comment on whether it would buy shares in Aramco’s potential IPO.
Sarasin & Partners said in July it had sold nearly 20% of its holdings in Shell, saying its spending plans were out of sync with international targets to battle climate change. The rest of the stake is under review.
The asset manager, which has nearly 14 billion pounds in assets under management, didn’t participate in Aramco’s bond offering and Landell-Mills said they would be unlikely to invest in any IPO.
Additional reporting by Ron Bousso in London and Victoria Klesty in Oslo; Editing by Carmel Crimmins and Pravin Char
Live Trading News published a generally shared view of Aramco Takes a Beating by S. Jack Heffernan on August 12, 2019. So, without further ado, here are the man’s thoughts on why Aramco Takes a Beating.
Saudi state-owned energy giant Aramco said Monday its first-half net income for 2019 had slipped to $46.9 billion, a first such disclosure for the secretive company ahead of its debut earnings call.
“The company’s net income was $46.9 billion for the first half (of) 2019, compared to $53.0 billion for the same period last year,” the company said in a statement.
The fall in income, owing to lower oil prices, comes amid renewed speculation the company was preparing for its much-delayed overseas stock listing.
“Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow,” Aramco CEO Amin Nasser was quoted as saying in the statement.
It is the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April as it prepares to raise funds from investors.
It made no mention of the planned initial public offering in Monday’s statement.
Crown Prince Mohammed bin Salman has previously said the IPO — dubbed as potentially the world’s biggest stock sale — would take place in late 2020 or early 2021.
Saudi Arabia plans to sell up to five per cent of the world’s largest energy firm and hopes to raise up to $100 billion.
The planned IPO forms the cornerstone of a reform programme envisaged by Prince Mohammed to wean the Saudi economy off its reliance on oil.
Saudi Arabia has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.
S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several startups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen startups in Mining, Shipping, Technology and Financial Services.1
Climate Action in the Middle East North Africa (CAMENA) invests EUR 4 million in the GGF to attract private capital for helping the region fight climate change; together with EUR 5 million EIB investment, the contribution further strengthens GGF’s capacity for financing and promoting green energy measures.
The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, has attracted EUR 4 million in dedicated funding from the initiative Climate Action in the Middle East North Africa (CAMENA). Combined with EUR 5 million in support from the European Investment Bank (EIB) through the Luxembourg-EIB Climate Finance Platform in 2018, the GGF has increased its capacity to leverage further private investments for green lending in the region.
Created with the support of the U.K. Department for International Development, CAMENA is managed by the EIB as an initiative to help countries in the Southern Mediterranean fight climate change by funding targeted climate initiatives and vehicles, like the GGF. The EIB is also supporting the GGF’s efforts to drive climate action by providing additional funding through the Luxembourg-EIB Climate Finance Platform. The investments will be used to strengthen the GGF’s “C-shares”, a special risk-absorbing layer that enables the fund to attract private capital – which is crucial for channelling higher volumes of investment to achieve maximum impact.
The GGF has seen remarkable growth in its MENA investment portfolio, which increased by over 50% in volume in 2018 to cross the EUR 133 million mark. The GGF leverages public and private capital to fund pioneering green energy initiatives such as the Phoenix 50MW sub-project of the Benban Solar Park in Egypt, the largest solar farm in the world.
“Mobilising private finance for climate action projects in the MENA region is a key priority for the EU Bank. That is why I am very pleased that we have finalised this investment in the Green for Growth Fund. We believe this support is an important signal of confidence in the fund’s potential. We expect that our commitment, which is strengthening the special risk absorbing a layer of the fund, will attract additional finance from the private sector to support transformative green energy projects in the region” said Barbara Boos, head of the Infrastructure Funds and Climate Action division of the EIB.
“As a co-initiator of the GGF, EIB has been instrumental in supporting green energy initiatives in the MENA region through their trust funds. We value partners like the EIB, whose contributions absorb market risks so as to attract additional private investments, thus helping to make green finance mainstream,” said GGF Chairman Olaf Zymelka. “These kinds of initiatives enable funds like the GGF to become a testament to the power public capital can wield in engaging private capital,” he added.
Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The MENA region is highly susceptible to climate change on account of its water scarcity, high dependence on climate-sensitive agriculture, and concentration of population and economic activity in urban coastal zones. Therefore, we consider it crucial for the GGF to have a positive environmental impact in the region by promoting energy and resource efficiency, and the development of renewable energy sources.” Distributed by APO Group on behalf of European Investment Bank (EIB). Media files
According to the world banking institutions, it would require some $5.47 bn in investments for MENA economies’ advancement as elaborated on the ESI of July 23, 2019. There are related Economic and Governance Risks as everybody knows but it remains as solvable as anywhere else in the world.
The World Bank responded to strong demand from the Middle East and North Africa Region (MENA) during the financial year that ended on 30 June 2019, with $5.47 billion in new commitments to invest in people, expand the private sector, and set a course for digital transformation.
Along with the financial commitments, the Bank delivered a wide range of analytical products in support of development goals of MENA countries.
In addition, there were $67 million in new committed grants for the West Bank and Gaza during the past financial year.
The World Bank’s knowledge services included support for the region’s high-income countries through its Reimbursable Advisory Services. The programme, which reached $56 million during the past financial year, supported efforts to diversify economies and promote private sector development, along with supporting the Kingdom of Saudi Arabia in anticipation of their upcoming G20 chairmanship.
“While the region has stabilised following the dual economic and social shocks caused by collapsing global commodity prices and a wave of social unrest, many countries have yet to enact the deep structural reforms necessary to achieve economic transformation that yields sustainable, inclusive growth,” said Ferid Belhaj, World Bank Vice-President for MENA.
Belhaj added: “These reforms are ever more urgent if the region is to seize the opportunity that its rapidly growing, highly educated and tech savvy young population represents. We have been working with governments to unlock this immense potential, channelling our support towards efforts to transform the region’s economies and embrace digital technology as a path to growth and opportunities.”
New strategy for the MENA region
In March of this year, the World Bank Group launched an enlarged strategy for the MENA region.
It provides a new and positive vision for the future of MENA with a focus on investments in human capital, leveraging the benefits of digital technology, and mobilising private financing for development while remaining committed to addressing the root causes of instability and responding to immediate needs.
All eyes will be on the region as Saudi Arabia takes over the presidency of the G20, Egypt chairs the African Union, and Morocco hosts the Annual Meetings in Marrakech in 2021.
Over the past financial year, the Bank worked with countries in the region to seize this momentum, turn these new priorities into reality, and project the region on to the global development stage, with a set of concrete goals to be achieved by 2021, in time for the Annual Meetings.
These efforts included a number of major financing programmes. In Jordan, a $1.45 billion financing package was launched to support the country’s plans to improve its business and investment environment and improve fiscal sustainability.
In Egypt, a $1 billion programme was launched to help sustain the momentum of Egypt’s reform program and capitalise on improvements to macroeconomic stability.
The programme helped launch the next generation of reforms focused on creating opportunities for Egyptians and raising living standards by promoting the private sector and improving government performance.
In Morocco, a $700 million programme was launched in support of the government’s efforts to leverage digital technologies to transform the country’s economy into a more inclusive and innovative driver of growth.
In Yemen, the Bank launched a new country engagement strategy and committed $540 million during the financial year to maintain the provision of services and support economic opportunities, bringing the Bank’s active portfolio to over $1.7 billion.
The World Bank also continued its support to Syrian refugees and the communities hosting them in Jordan and Lebanon through projects with the Global Concessional Financing Facility, a multi-donor vehicle which has leveraged over $2.5 billion in MDB financing to date.
The Bank also delivered a range of analytical products to support evidence-based policies and hosted regional knowledge-sharing events to promote coordinated approaches to the region’s development challenges.
“In line with the goals of the World Bank Group’s historic capital increase announced last year, our programs have focused on scaling up support to meet the aspirations of people in MENA by focusing on the opportunities that digitisation, entrepreneurship and innovation and greater regional coordination can bring,” said Anna Bjerde, World Bank Director of Strategy and Operations for the Middle East and North Africa.