Al-Jadaan: The Diriyah principles are the most important reforms of the International Monetary Fund
Al-Jadaan highlights the importance of the Diriyah Guiding Principles in IMF reforms
In significant remarks, His Excellency the Saudi Minister of Finance, Mohammed Al-Jadaan , affirmed that the Diriyah Principles are among the most important and prominent reforms undertaken by the International Monetary Fund (IMF) in over 15 years, particularly concerning quotas and governance. These remarks underscored the pivotal role played by the Kingdom of Saudi Arabia in shaping global financial policies and emphasized the importance of international consensus in addressing current economic challenges.
Historical context of IMF reforms
To understand the significance of the Diriyah Principles, one must consider the historical context of IMF reforms. Since the 14th Quota Review in 2010, the Fund has faced persistent demands to restructure its quota system to more equitably reflect shifts in the global economy, particularly the rise of emerging and developing economies. The Diriyah Principles, formulated to advance this approach, represent a strategic turning point aimed at improving the Fund's governance and ensuring more balanced representation of member countries, thereby enhancing the Fund's legitimacy and its ability to respond effectively to global financial crises.
The strength of the Saudi economy under Vision 2030
During the G20 Finance Ministers and Central Bank Governors meetings, Al-Jadaan noted the strong consensus among members on the need to intensify joint efforts to enhance global macroeconomic and financial stability. In this context, he emphasized the resilience and strength of the Saudi economy, which continues to achieve sustainable and balanced growth rates. This success is not accidental, but rather the fruit of the profound structural reforms spearheaded by Saudi Vision 2030, which have contributed to diversifying income sources, reducing dependence on oil, and stimulating growth in the non-oil sector, making the Saudi economy a model of resilience in the face of global fluctuations.
Gulf integration and the protection of global markets
In a panel discussion titled “A Discussion on the Global Economy: Policies for Stability, Resilience, and Prosperity,” Minister Al-Jadaan addressed the regional dimension, highlighting the unprecedented level of economic integration within the Gulf Cooperation Council (GCC) region. This integration, which includes coordinating fiscal and monetary policies and developing shared infrastructure, not only serves the interests of the Gulf states but also plays a crucial role in protecting global markets from shocks and ensuring the stability of energy supplies and global supply chains.
Supporting fragile states and addressing challenges in the Middle East region
At the international level, during a meeting of the World Bank Group's Development Committee, Al-Jadaan reiterated his call for collective action. He emphasized the need for international organizations to be prepared to provide effective support programs to affected and fragile countries, helping them overcome the economic and geopolitical challenges facing the world.
His Excellency also highlighted his active participation in the meeting of ministers and governors of the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region with the Managing Director of the International Monetary Fund. He delivered a clear message that the next phase requires the region's countries to exercise a high degree of prudence and coordinate their efforts. He emphasized the importance of adopting a clear strategic vision and implementing rapid and comprehensive structural reforms. These steps are essential to supporting macroeconomic stability, strengthening fiscal space, and enabling the region's countries to absorb and respond to external shocks more effectively and flexibly, thus paving the way for sustainable and inclusive economic development.
