IMF’s Kristalina Georgieva’s participation in WGS
Kristalina Georgieva, IMF Managing Director, had a key participation in one of the plenary sessions on the opening day of the World Governments Summit 2024 (WGS) in Dubai.
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This substantial three-day summit, running until February 14 with the theme ‘Shaping Future Governments’, gathers more than 25 heads of state, over 85 international and regional organizations, 140 governments, and leading global thinkers and experts. It features discussions on future global trends with more than 200 speakers across over 110 dialogues and sessions.
The event had a significant participation also from His Highness Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, the Crown Prince of Fujairah, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, the Prime Minister and Foreign Minister of Qatar, His Highness Lieutenant General Sheikh Saif bin Zayed Al Nahyan, the Deputy Prime Minister and Minister of the Interior, His Excellency Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Tolerance and Coexistence, and His Excellency Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, and Chairman of the World Governments Summit.
The CNN’s Richard Quest moderated the session where Georgieva congratulated the UAE for its early adoption of artificial intelligence (AI) technologies and its visionary step of creating a ministry dedicated to AI in 2017, at a time when the global community was hesitant about embracing such technologies.
Georgieva compared the transition towards AI to the Industrial Revolution in its scale and the depth of its impact, suggesting it could reshape up to 40% of the job market by either evolving existing roles or introducing new ones. And mentioned the IMF report that highlighted the UAE and Saudi Arabia’s readiness for this shift, comparing it to the lack of readiness observed in the other developing countries.
She also encouraged the UAE for taking a leadership role in adopting AI in a manner that benefits humanity and for assisting other countries, particularly developing and emerging markets, to leverage AI technology while mitigating its possible adverse effects.
Georgieva outlined four key aspects to assess AI readiness: the availability of digital infrastructure, the skills and mobility of the labour market and the degree of innovation, measured by investment in research and development, and the framework for regulation and ethics.
Beside expressing her optimism for AI, Georgieva also shared her concerns, underlining the lessons from the COVID-19 pandemic about the importance of preparedness for unforeseen challenges, the agility to adapt to changes, and the significance of being proactive.
On the other hand, Georgieva predicted a 40% reduction in global interest rates by mid-2024, expressing confidence in the global economy’s capacity for a soft landing. She also highlighted the economic strengths of the United States, including its robust capital markets, dynamic economy, particularly in new technologies, and its quick adaptability, which makes it an attractive destination for investment.
In response to a question about the robust reaction of the United States amidst high interest rates, Georgieva pointed to the country’s energy independence and its role as an energy exporter, especially during the Ukraine conflict, which distinguished it from Europe’s energy challenges. She also praised the U.S. government’s support for families and businesses during the pandemic, which maintained consumer spending, demand levels, and a vibrant labour market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This agreement aims to foster the development of robust partnerships between the communities of both regions.
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The Australian Chamber of Commerce and Industry has recently signed a Memorandum of Understanding (MoU) with the Dubai Chambers, marking a significant step towards enhancing cooperation and strengthening economic and trade relations between Dubai and Australia. This strategic agreement aims to foster the development of robust partnerships between the business communities in both regions.
In today’s interview, we will delve with Mr. Lyall Gorman, Vice President of the Australian Chamber of Commerce and Industry, into the objectives and anticipated impacts of this MoU, explore the key initiatives and projects that will arise from this collaboration, and discuss the potential challenges and strategies for overcoming them.
We will also look into how this agreement aligns with the broader strategic goals of the Australian Chamber of Commerce and Industry and the future of trade relations between Australia and the Middle East.
Can you give us a brief overview of the MoU signed with the Dubai Chamber? What are the main objectives?
The MoU we signed is designed for the two chambers to collaborate for mutual benefit and interest, focusing on business-to-business interactions. We are currently exploring opportunities around delegations, information sharing, trade, commerce, and e-commerce. The main goal is to bring businesses together in a structured manner to share ideas and encourage positive outcomes.
This partnership aims to increase the understanding of each other’s economies, recognize opportunities in each other’s regions, and work together to create mutual benefits. By doing that, we hope to enhance the economic ties between Dubai and Australia, leveraging each other’s strengths to create a more dynamic and prosperous business environment.
How do you see this MoU impacting trade relations between Australia and Dubai in the short and long term?
In the short term, we are expecting to generate a significant increase in awareness. By sharing information, data, and demographic insights, we will gain a better understanding of each other’s economic environments. This will help us identify existing opportunities for collaboration and potential mutual investment. From a trade perspective, we anticipate increased exports from Australia to Dubai and vice versa. This could include areas such as disruptive technology, medical research, education, construction, and agriculture—sectors that are currently emerging and critical.
In the long term, this enhanced understanding and collaboration will allow us to identify and capitalize on more opportunities. It’s about recognizing what’s happening in each other’s regions, understanding potential opportunities, and working together to create economic value. By fostering a deeper economic connection, we aim to create sustainable growth and mutual benefits over time.
What sectors or industries do you see as the primary beneficiaries of this partnership?
There are several mutual opportunities we aim to explore. Dubai has evolved incredibly over the last 20 years, achieving remarkable growth. However, there are still areas where further cooperation can drive growth. Some of the key initiatives will focus on sectors such as AI, digital disruptive technologies, smart technologies, financial services, education, construction, and advanced technologies.
Australia is highly regarded for its building codes and manufacturing capacity, especially in the construction sector. Additionally, I believe food security presents an interesting opportunity. As a major exporter of meat and other food products, Australia can contribute significantly to food security discussions, which is particularly relevant for Dubai.
Education is another area with significant potential for collaboration. By exploring these sectors, we aim to implement projects that not only address current challenges but also pave the way for sustainable development and innovative solutions in both regions.
What challenges do you foresee in the implementation of this MoU, and how do you plan to address them?
The cultural differences can impact how business is conducted, and this requires careful navigation. To address this, we need open and transparent communication, fostering a spirit of collaboration and mutual respect. It’s essential to have a genuine desire to embrace each other’s cultural differences and find common ground.
Another potential challenge is ensuring that both sides fully understand and adapt to each other’s regulatory environments and market dynamics. Dubai has matured significantly into a global business and corporate hub, which helps, but there are still differences to consider.
By prioritizing understanding and respect, and committing to ongoing learning from each other, we can effectively manage these challenges. Working together in a considerate and respectful manner will be crucial in overcoming any hurdles that may arise during the implementation of this MoU.
How does this MoU align with ACCI’s broader strategic goals for international trade and collaboration?
This MoU aligns closely with ACCI’s broader strategic goals by emphasizing the importance of fostering and diversifying economic partnerships on a global basis. The current global geopolitical situation has underscored the need for diversifying our supply chains and business relationships.
From an Australian perspective, the lessons learned during the COVID-19 pandemic and the evolving geopolitical environment have further highlighted the necessity of expanding our economic partnerships.
The Middle East, including the GCC, are regions where Australia already has strong relationships that can be further strengthened. Therefore, by working together, collaborating, and sharing knowledge and forward-thinking ideas, this MoU will help us identify and shape initiatives that add value and align with our strategic goals for international trade and collaboration.
How do you envision the future of trade relations between Australia and the Middle
I believe it will become stronger, more robust, and more regular, all for mutual benefit. There is a genuine willingness between both regions to grow and expand this relationship through a partnership model rather than a transactional one. This approach involves setting short, medium, and long-term goals, fostering a thriving and enduring relationship.
We have already established a strong partnership with Dubai Chambers and maintain a good relationship with the Dubai International Chamber here in Australia, led by Sophia Demetriades Toftdahl. This aligns with our strategic goal of global diversification in business.
Additionally, we recently signed an MoU with the Qatar Chamber and are about to sign with the Abu Dhabi Chamber as well.
Engaging with Saudi Arabia also makes sense, as it is a significantly emerging country. The last few years under new leadership have brought clarity to its economic, political, and social future and a strong passion and drive to become a major player in the region and global stage
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
