FSB MENA Group Meets in Egypt Under Saudi Co-Chairmanship

The Financial Stability Board’s (FSB) Regional Consultative Group for the Middle East and North Africa (MENA) convened in Sharm El-Sheikh, Egypt, on January 30, 2025, under the joint chairmanship of Saudi Central Bank (SAMA) Governor Ayman bin Mohammed Al-Sayari and Central Bank of Egypt Governor Hassan Abdalla. The meeting, hosted by the Central Bank of Egypt, brought together senior financial authorities from across the region to review the FSB’s 2025 work program and exchange views on incorporating the MENA perspective into the board’s planned initiatives. Discussions also covered recent developments in global and regional markets, including the outlook for financial stability. The gathering underscores the Kingdom of Saudi Arabia’s active role in shaping international financial governance and reinforcing regional cooperation.

Why does a meeting of financial regulators in Sharm El-Sheikh matter to households, businesses, and investors far beyond the Middle East? Because the decisions and priorities discussed there ripple through banking systems, capital markets, and cross-border investment flows that connect the region to the global economy. The MENA Regional Consultative Group serves as a vital channel for translating the region’s unique economic circumstances into the FSB’s global agenda. Saudi Arabia’s co-chairmanship of this group reflects its growing stature as a stabilizing force in international finance and its commitment to the objectives of Vision 2030, which seeks to diversify the Kingdom’s economy and deepen its integration with global markets.

Context and Background

What exactly is the Financial Stability Board, and why does its regional outreach carry such weight? The FSB is an international body that monitors and makes recommendations about the global financial system. Its regional consultative groups, including the one for MENA, were established to ensure that the perspectives of emerging and developing economies are systematically included in the board’s deliberations. The MENA group comprises financial authorities from Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, Kuwait, Egypt, Jordan, Morocco, Lebanon, Algeria, Tunisia, and Türkiye. This broad membership makes it a uniquely representative platform for a region that spans the Gulf, North Africa, and the Levant.

The Sharm El-Sheikh meeting took place against a backdrop of shifting global financial conditions. Central banks worldwide continue to navigate inflation pressures, interest rate adjustments, and geopolitical uncertainties. For the MENA region, these dynamics are compounded by the need to finance ambitious economic transformation programs, manage energy market volatility, and strengthen domestic financial infrastructures. The Regional Consultative Group provides a forum where these shared challenges can be discussed candidly and where coordinated approaches can be developed. Saudi Arabia’s leadership within this group is consistent with its longstanding policy of promoting stability and prosperity across the region.

How does the FSB’s work program for 2025 connect to the daily realities of the region? The program focuses on areas such as enhancing the resilience of the non-bank financial sector, improving cross-border payments, addressing climate-related financial risks, and strengthening cyber resilience. Each of these priorities has direct implications for the MENA region. For example, improving cross-border payments can reduce costs for remittances that are a lifeline for millions of families. Addressing climate risks is essential for economies that are heavily invested in energy and infrastructure. By participating actively in the FSB’s work, Saudi Arabia and its regional partners help shape global standards that are practical and relevant to their circumstances.

Key Details of the Sharm El-Sheikh Meeting

What were the central points of discussion during the meeting? According to the Saudi Press Agency, the meeting reviewed the FSB’s work program for 2025, with members exchanging views on how to incorporate the region’s perspective into the board’s planned initiatives. Participants also discussed recent developments in global and regional markets, including the outlook for financial stability. The joint chairmanship of SAMA Governor Ayman bin Mohammed Al-Sayari and Central Bank of Egypt Governor Hassan Abdalla signaled a collaborative approach to addressing these issues. The presence of senior officials from thirteen financial authorities further demonstrated the region’s collective commitment to financial stability.

The agenda reflected a careful balance between global priorities and regional specificities. Members considered how the FSB’s initiatives on digital innovation, sustainable finance, and resolution frameworks could be adapted to the MENA context. They also examined the potential spillovers from advanced economy monetary policies and the implications of commodity price fluctuations. The discussions were forward-looking, aiming to anticipate risks and identify opportunities for strengthening the region’s financial architecture. The meeting concluded with a shared understanding of the importance of continued dialogue and coordination.

Why is the joint chairmanship by Saudi Arabia and Egypt significant? It highlights the two countries’ roles as anchors of stability in the region. Saudi Arabia, as the largest economy in the Arab world and a member of the G20, brings substantial influence to the table. Egypt, with its strategic location and large population, is a key player in North Africa and the Eastern Mediterranean. Together, they exemplify the kind of cross-regional cooperation that the FSB seeks to foster. Their leadership also reinforces the message that the MENA region is not merely a recipient of global financial standards but an active contributor to their development.

International and Regional Impact

How will the outcomes of this meeting influence the broader international financial system? The MENA Regional Consultative Group’s recommendations feed directly into the FSB’s global agenda. By articulating the region’s views on financial stability risks and regulatory priorities, the group helps ensure that international standards are designed with the unique characteristics of emerging markets in mind. This is particularly important as the global financial system becomes more interconnected and as non-bank financial intermediation grows. The meeting in Sharm El-Sheikh thus represents a concrete step toward a more inclusive and effective global financial architecture.

What does this mean for regional cooperation among MENA countries? The gathering provided an opportunity for financial authorities to strengthen bilateral and multilateral ties. Informal exchanges on the sidelines of the meeting can lead to new avenues for collaboration, such as joint capacity-building initiatives or shared approaches to supervising cross-border financial institutions. For Saudi Arabia, these interactions complement its bilateral engagements and its participation in other regional bodies, such as the Gulf Cooperation Council and the Arab Monetary Fund. A coordinated regional stance can amplify the MENA voice in global forums and enhance the region’s ability to attract investment and manage risks.

Economic and Strategic Significance

Why should global investors and business leaders pay attention to this meeting? Financial stability is a prerequisite for investment and growth. When regulators cooperate and align their approaches, they reduce uncertainty and lower the cost of capital. The Sharm El-Sheikh discussions on market developments and the outlook for financial stability provide signals about the region’s economic direction. Saudi Arabia’s active involvement reassures investors that the Kingdom is committed to maintaining a sound and transparent financial system, which is a cornerstone of Vision 2030’s economic diversification agenda. A stable financial sector supports the development of new industries, the growth of small and medium enterprises, and the creation of jobs.

How does this meeting align with Saudi Arabia’s strategic priorities? The Kingdom has consistently emphasized the importance of international cooperation in addressing global challenges. Under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Saudi Arabia has pursued a foreign policy that promotes stability, dialogue, and shared prosperity. The co-chairmanship of the FSB MENA group by SAMA Governor Ayman Al-Sayari is a manifestation of this policy. It also supports the goals of the Financial Sector Development Program, one of the Vision 2030 realization programs, which aims to create a diversified and effective financial sector to support the development of the national economy.

Vision 2030 Alignment

How does Saudi Arabia’s participation in the FSB Regional Consultative Group advance the objectives of Vision 2030? Vision 2030 seeks to transform the Kingdom into a global investment powerhouse and a hub connecting three continents. A robust and internationally integrated financial sector is essential to this ambition. By helping to shape global financial standards and by fostering regional cooperation, Saudi Arabia enhances its attractiveness as an investment destination and strengthens its ability to channel capital into productive sectors. The knowledge and relationships gained through the FSB process also inform domestic regulatory reforms that make the Saudi financial system more resilient and efficient.

What can we expect next from Saudi Arabia’s engagement with the FSB and similar bodies? The Kingdom is likely to continue playing a proactive role in the MENA Regional Consultative Group, advocating for policies that support sustainable development and financial inclusion. As Saudi Arabia prepares for future global events and assumes greater responsibilities on the world stage, its voice in international financial governance will only grow. The Sharm El-Sheikh meeting is a reminder that the Kingdom is not just participating in the global economy but helping to lead it, in line with Vision 2030’s vision of a diversified, prosperous, and outward-looking nation.

20 Questions

Q1. What was the main purpose of the FSB Regional Consultative Group for MENA meeting in Sharm El-Sheikh?

A1. The meeting reviewed the FSB’s 2025 work program and allowed members to exchange views on incorporating the region’s perspective into the board’s planned initiatives, while also discussing global and regional market developments and the outlook for financial stability.

Q2. Who chaired the meeting?

A2. The meeting was jointly chaired by Saudi Central Bank (SAMA) Governor Ayman bin Mohammed Al-Sayari and Central Bank of Egypt Governor Hassan Abdalla. It was hosted by the Central Bank of Egypt in Sharm El-Sheikh.

Q3. Which countries are members of the FSB MENA Regional Consultative Group?

A3. The group includes financial authorities from Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, Kuwait, Egypt, Jordan, Morocco, Lebanon, Algeria, Tunisia, and Türkiye, representing a broad cross-section of the region.

Q4. What is the Financial Stability Board?

A4. The FSB is an international body that monitors and makes recommendations about the global financial system. It promotes international financial stability by coordinating national financial authorities and international standard-setting bodies.

Q5. Why is Saudi Arabia’s role in the FSB important?

A5. Saudi Arabia, as the largest Arab economy and a G20 member, brings significant influence to the FSB. Its participation helps ensure that the region’s perspectives are considered in global financial policymaking and reflects the Kingdom’s commitment to international cooperation.

Q6. What topics were discussed at the meeting?

A6. Participants reviewed the FSB’s 2025 work program, discussed recent developments in global and regional markets, and examined the outlook for financial stability. They also considered how to integrate regional views into the FSB’s initiatives.

Q7. How does this meeting relate to Vision 2030?

A7. The meeting supports Vision 2030 by promoting financial stability and international integration, which are essential for economic diversification. It also aligns with the Financial Sector Development Program, a key Vision 2030 realization program.

Q8. What is the significance of the joint chairmanship by Saudi Arabia and Egypt?

A8. The joint chairmanship highlights the collaborative spirit between two major regional economies. It underscores their shared commitment to financial stability and their roles as anchors of economic cooperation in the Middle East and North Africa.

Q9. What are the key priorities of the FSB’s 2025 work program?

A9. The program focuses on enhancing resilience in non-bank financial intermediation, improving cross-border payments, addressing climate-related financial risks, and strengthening cyber resilience, among other areas relevant to global financial stability.

Q10. How does the MENA group contribute to the FSB’s global agenda?

A10. The MENA group provides regional perspectives that help shape the FSB’s global policies. By articulating the region’s unique challenges and priorities, it ensures that international financial standards are relevant and effective for emerging markets.

Q11. What are the implications for global investors?

A11. The meeting signals ongoing regional commitment to financial stability and regulatory cooperation, which can reduce uncertainty for investors. A stable financial environment in MENA supports investment opportunities and economic growth, particularly in Saudi Arabia.

Q12. How does the meeting affect regional financial integration?

A12. By fostering dialogue among financial authorities, the meeting promotes greater understanding and coordination on regulatory issues. This can lead to more integrated regional financial markets and improved cross-border cooperation.

Q13. What is SAMA’s role in international financial forums?

A13. SAMA actively participates in international forums like the FSB to represent Saudi Arabia’s interests and contribute to global financial stability. Its engagement reflects the Kingdom’s growing role in shaping the international financial architecture.

Q14. What are the expected outcomes of the meeting?

A14. The meeting is expected to result in a consolidated regional input to the FSB’s 2025 work program, strengthened relationships among member authorities, and a clearer understanding of shared financial stability risks and opportunities.

Q15. How does financial stability support economic diversification in Saudi Arabia?

A15. A stable financial system is essential for attracting investment, fostering entrepreneurship, and enabling the growth of non-oil sectors. It provides the foundation for the economic diversification goals of Vision 2030.

Q16. What role does the Central Bank of Egypt play in the group?

A16. The Central Bank of Egypt co-chairs the group and hosted the meeting. It plays a key role in facilitating regional dialogue and ensuring that North African perspectives are well represented in the FSB’s work.

Q17. How often does the FSB MENA group meet?

A17. The group typically meets twice a year, providing regular opportunities for members to discuss emerging issues and coordinate their positions on global financial regulatory matters.

Q18. What are the benefits of Saudi Arabia’s participation for the Kingdom’s financial sector?

A18. Participation allows Saudi regulators to stay informed about global best practices, contribute to standard-setting, and build relationships that can facilitate cross-border cooperation and investment, ultimately strengthening the domestic financial sector.

Q19. How does this meeting reflect Saudi Arabia’s leadership in the region?

A19. Saudi Arabia’s co-chairmanship and active engagement demonstrate its leadership and commitment to regional stability. It shows the Kingdom’s willingness to take on responsibilities that benefit the entire MENA region.

Q20. What is the next step after the Sharm El-Sheikh meeting?

A20. The outcomes will inform the FSB’s global work program and future regional consultations. Saudi Arabia will continue to engage actively in the group’s activities, promoting financial stability and cooperation in line with Vision 2030.

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