President Al Jasser Addresses World Government Summit

Dubai, United Arab of Emirates, 13 February 2023 - Islamic Development Bank (IsDB) Group Chairman, H.E. Dr. Muhammad Al Jasser, led a high-level delegation to the World Government Summit in Dubai (13-15 February 2023) under the theme "Shaping Future Governments."

The summit brought together thought leaders, global experts, and decision-makers from around the globe to share and contribute to developing tools, policies, and models essential to shaping future governments.

Speaking at the summit on "The Impact of Regulatory Framework and Governance on Development and Investment," H.E. Dr. Muhammad Al Jasser addressed the importance of long-term economic development and good governance in combating crises and heightened uncertainties.

"Evidence has shown a robust positive relationship between an improved regulatory environment, aggregate investment, and thus economic growth. Countries stand to gain from a broad push for streamlining business regulations and procedures. Macroeconomic and structural policies, when coupled with good governance, promote an enabling environment, which fosters rapid and sustained economic growth," said Dr. Al Jasser.

IsDB Group Chairman Al Jasser emphasized that regulatory frameworks and governance should promote market transparency and efficiency to address market failures through appropriate incentive mechanisms. He noted that the investment decision-making process is largely governed by clarity and stability as investors generally stay away from unpredictable and unstable environments since “A dose of unpredictability a day keeps the investors away,” He added.

Dr. Al Jasser underlined three intertwined critical criteria for an effective regulatory framework: clarity, agility, and effectiveness. He also emphasized that sound regulatory framework and good governance nourish fair and efficient conditions, which are fundamental to sustainable prosperity, peace, and stability.

"As the president of a multilateral development institution whose member countries are either emerging or developing economies, I recognize how government effectiveness makes a big difference in development effectiveness," said Dr. Al Jasser. He recounted how robust regulatory frameworks and governance in some IsDB member states had helped reduce poverty and improve living conditions.

Dr. Al Jasser concluded by emphasizing that good governance underpins government effectiveness, making it critical for developing nations to pursue good governance, develop sound and predictable policies, and build solid institutional frameworks.