Arab Coordination Group Joint Communiqué: Advancing Sustainable and Inclusive Development

Communique
Heads of Arab Coordination Group Institutions Seville, Spain – June 30th , 2025 On the sidelines of the Fourth International Conference on Financing for Development (FfD4)

Preamble

We, the Heads of Arab Coordination Group (ACG) Institutions, convening in Seville during the Fourth International Conference on Financing for Development (FfD4), reaffirm our collective commitment to delivering agile, equitable, and forward-looking development finance solutions. As we celebrate 50 years of action, we draw strength from our legacy while looking ahead to make bold and transformative contributions to the global financing landscape.

FfD4 convenes at a time of unprecedented and intersecting crises: widening development finance gaps, intensifying climate shocks, rising debt distress, persistent fragility, and an international financial system that remains inequitable and fragmented.

While FfD4 has highlighted important challenges and ambitions, the path to meaningful reform remains uncertain—especially concerning climate finance, mainstreaming private capital, and recognizing the strategic role of ACG institutions.

We Commit To:

1. Strengthening ACG’s Role in Global Finance Architecture

  •  Advocate for the institutionalized inclusion of ACG institutions as permanent stakeholders in global governance, financing mechanisms, policy forums, and debt platforms.
  • Ensure that regional priorities and realities are reflected in the follow-up and outcome reporting of FfD4.

2. Scaling Up Climate-Resilient Development Finance

  • Expand collective financing for adaptation, resilient infrastructure, and cross-border climate initiatives in agriculture, water, energy, and transport.
  • Support new climate finance tools, including green Sukuk and blended adaptation facilities.

3. Supporting Fragile and Conflict-Affected States

  • Enhance early recovery and reconstruction financing using area-based, community- led models that support stabilization and local institution-building.
  • Engage in innovative partnerships to provide financial protection and resilience tools for vulnerable populations.
  • Prioritize financing models which recognize that economic opportunity is central to long-term stability.

4. Addressing land degradation

  •  Leverage diverse financing instruments to support long-term projects focused on restoring degraded lands and preventing further land degradation, improving soil health, and preserving biodiversity

5. Unlocking Private Capital and Enhancing Risk Sharing

  • Scale guarantees, blended finance structures, and PPPs to crowd in responsible private investment into SDG-critical sectors.
  • Launch co-investment platforms with regional sovereign wealth funds and international impact investors.

6. Promoting Islamic Finance and Financial Innovation

  • Position Islamic finance as an inclusive development framework, with a focus on asset-backed solutions.
  • Integrate data-driven approaches, AI, and digital tools to enhance transparency, targeting, and results of monitoring in ACG-financed operations.

7. Championing South–South Development Finance Cooperation

  • Strengthening cross-regional collaboration and knowledge sharing in climate resilience, food security, and digital inclusion.

8. Coordinating Action and Increasing Strategic Visibility

  •  Endorse an ACG 2025–2030 Joint Action Plan to align future operations with key FfD4 themes and upcoming global forums, including COP30 and the 2026 SDG Summit.

We Call Upon:

  • Multilateral institutions to partner with ACG institutions as co-architects—not just implementers – of a more inclusive financial architecture that reflects the voices, needs, and innovations of the Global South.
  • The international community transforms the aspirations of FfD4 into actionable outcomes that embed regional leadership and systemic reform.
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