His Excellency Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of Qatar Central Bank, inaugurated the Arab Banking Conference 2024, which is hosted by the State of Qatar over the course of September 10 and 11 of this year, under the auspices of Qatar Central Bank and organized by the Union of Arab Banks under the title “Requirements of Sustainable Development and the Role of Banks.”
In his opening speech, His Excellency Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of Qatar Central Bank, noted the importance of holding this conference to discuss sustainable development issues as they represent a gateway to shaping the future of our world. He pointed out the qualitative leap achieved by the global community in light of the development of science and the advancement of technology and the industrial revolution and unprecedented development in health services witnessed by the world, which was reflected in the quality of human life, as the per capita share of the global gross domestic product increased by more than ten times over the past two hundred years.
His Excellency explained that despite this development, it is undeniable that this growth has led to tangible climate changes in our daily lives. His Excellency continued, adding: “While the world continues to make efforts to achieve tangible progress in implementing the 2030 Sustainable Development Goals, there are still some challenges that may slow down the achievement of the desired goals and limit the growth of the global economy.”
Balance between economic growth and sustainability
The Governor of Qatar Central Bank said that the world is required to find a balance between economic growth on the one hand and sustainability on the other hand, as they constitute the two sides of the equation, which calls for acting responsibly, by providing executive mechanisms to achieve balance and exploiting modern technology to reduce carbon emissions, in addition to encouraging financing for sustainable projects.
Regarding the contribution of banks to supporting sustainable development, His Excellency noted the crucial role played by banks in financing the economy, and their ability to support development by directing the necessary resources to development initiatives, as His Excellency said, “Just as banks have a crucial role in financing the economy, they are able to contribute to enhancing economic, social and environmental well-being in the long term, by directing the necessary resources to initiatives that achieve economic feasibility and positively impact development.” He also pointed to the possibility of exploiting potential opportunities for growth by offering sustainable financial products such as green bonds, and leveraging financial technology to achieve broader sustainability goals.
Banks are partners in development
The Governor of Qatar Central Bank stated that banks, as partners in development, should provide assistance and adopt practices that are in line with the requirements of growth and sustainable development, and take into account the potential impact of environmental, social and governance factors in the frameworks for assessing capital and internal liquidity.
Regarding the challenges that may face achieving sustainability goals, His Excellency explained that they revolve around the availability of high-quality data, the development of appropriate frameworks to achieve the goals, and the extent of stakeholder support, stressing that regulatory authorities are responsible for providing an enabling environment to support the transition towards a sustainable economy, noting in the same context the advanced strides made by the State of Qatar in this field in line with its commitment to enhancing environmental, social and sustainability governance in the financial sector, as Qatar Central Bank recently launched the “Environmental, Social and Sustainability Governance Strategy and Principles for the Financial Sector”, which is based on three pillars, the first of which is concerned with managing climate, environmental and social risks in the financial sector, the second pillar encourages capital investments in sustainable financing, and the third pillar aims to integrate environmental, social and sustainability governance practices into the internal operations of Qatar Central Bank.
His Excellency Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of Qatar Central Bank, concluded his speech by calling for collective action to achieve the Sustainable Development Goals, which remain a solid and common goal for a more resilient and prosperous future.