A delegation from the Ministry of Finance (MoF), headed by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, participated in the G20 conference on commodity price volatility held in Istanbul today. The delegation included HE Younis Haji Al Khouri, Undersecretary of the Ministry of Finance (MoF) and HE Khalid Ali Al Bustani, Assistant Undersecretary of International Financial Relations Sector at MoF.
The conference addressed in detail the issue of the volatility of basic commodities prices in global markets in relation to recent market developments, and how it affects the overall economy. Attendees also discussed the key roles that stock markets have on price fluctuations, relations between economic and financial markets and methods of preventing market abuses. Other topics highlighted at the meeting included price changes pertaining to fossil fuels and agricultural products, and the importance of ahcieving food security through applying international coordination efforts and effectively managing price volatility risks for basic commodities in developing countries.
During the meeting, HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, thanked the French government who is heading the G20 and the Turkish government for organizing the conference. He then presented the UAE’s paper on the commodities market, and explained that the UAE was adamant on ensuring food security for all its citizens and residents through setting comprehensive national strategies to enhance policies in different sectors.
HE Al Tayer went on to explain that the issue of food security was one of the key challenges facing the Arab World and affecting Arab cooperation efforts. HE also elaborated on the position of the UAE and other Arab states in light of volatility of the prices of basic commodities which pose a serious problem for developing nations.
HE Al Tayer pointed out that most countries have experienced increases in the prices of food commodities, and the UAE was no exception. However, he explained that the increases present in the UAE local market were less than increases experienced on a global scale. This was due to the sound policies implemented by the UAE’s leadership which ensured that prices were controlled and that inspections on food items were carried out. The policies were also applied to encourage all initiatives relating to food safety.
HE Al Tayer concluded with the UAE’s recommendations regarding food security, which highlighted the importance of attaining balance between demand and supply of basic commodities and on addressing the issue of decreasing food reserves. The recommendations also focused on agricultural policies, preventative measures, and protectionist trade policies which have played a significant role in the past with regards to price volatilities. HE also highlighted the importance of encouraging agricultural investments and on providing the necessary related research and technology.
