Karki: Cooperation and Exchange of Expertise Among Social Security Institutions in Arab Countries

The Arab Social Security Association concluded the Arab conference on "Financial Sustainability of Social Security Systems Amid Challenges and Shocks," held in Cairo on September 16–17, under the patronage of Lebanon's Minister of Labor Dr. Muhammad Haydar, with participation by Dr. Muhammad Karki, Executive Director of the Arab Social Security Association, Mr. Islam Sina, Advisor to the General Director of the Arab Labour Organization, and Mr. Sami Abd al-Hadi, Deputy Chairman of Egypt's National Social Security Authority.

The conference saw broad participation from representatives of social security and social insurance institutions across Lebanon, Palestine, Iraq, Kuwait, Oman, Egypt, Sudan, Tunisia, Morocco, and Mauritania, along with a distinguished group of experts and specialists in social security, governance, and investment, who presented research papers and technical presentations addressing key challenges facing social security systems and shared various national experiences in this field.

The conference ended with a closing session chaired by Dr. Muhammad Karki, Executive Director of the Arab Social Security Association, who praised the quality of the research papers and technical contributions made by experts and specialists, while also commending the active participation and constructive discussions during the sessions.

Dr. Karki expressed gratitude to Minister of Labor Dr. Muhammad Haydar for his generous sponsorship of the conference, as well as appreciation to the Arab Labour Organization and its General Director, Mr. Faiyaz Ali Al-Mutairi, for their continuous support of the Association’s activities and initiatives.

He also thanked Egypt’s National Social Security Authority for its active involvement, and all delegations, experts, and participants, stating that this wide turnout and constructive engagement truly reflected the importance of joint Arab efforts toward achieving social justice.

He stressed the need for cooperation and exchange of experiences and expertise among social security and social insurance institutions across Arab countries to ensure dignified social protection for every Arab citizen.

Dr. Karki also called for strengthening and enhancing participation in the Association’s activities, emphasizing its role as a unified Arab platform for social security and social insurance institutions across the Arab world, contributing to the development of social protection systems and reinforcing their financial sustainability in the face of diverse challenges and shocks.

At the end of his speech, Dr. Karki wished all participants a pleasant stay in Cairo and a safe return to their home countries.

The following recommendations were issued:

1. "Update legislative and regulatory frameworks: Regular review and updating of laws governing social security and social insurance and their investment funds to keep pace with demographic, economic, and social changes, labor market shifts, technological and digital advancements."

2. Develop long-term, balanced investment policies: Adopt investment strategies based on strategic asset allocation, portfolio diversification, risk management, and alignment of asset maturities with liabilities, with potential geographic diversification including international financial markets under risk, return, and liquidity constraints, and applying the principle of the prudent investor.

3. Strengthen institutional and investment governance: Embed principles of accountability, independence, transparency, disclosure, and conflict-of-interest management in social security and investment fund boards, adopt clear standards for competence and experience, define responsibilities and authorities, and link performance evaluation to measurable quantitative indicators.

4. Expand coverage to include modern work patterns: Develop legislative, financial, and administrative mechanisms to integrate workers in the digital economy, temporary work, and platform-based employment into social protection systems, aligning with the nature of these new work models and enhancing inclusivity and sustainability of protection.

5. Diversify and sustain funding sources: Study and develop sustainable and diversified funding sources and mechanisms, including strengthening contribution collection, expanding the funding base, and leveraging public resources when needed, alongside regular assessments of funding gaps and long-term needs.

6. Conduct periodic financial and actuarial sustainability reviews: Implement regular financial and actuarial assessments of social security and social insurance systems, using results to shape contribution, benefit, financing, and investment policies. Actuarial assessments should serve as policy tools and be used to analyze the short-, medium-, and long-term impacts of alternative scenarios.

7. Enhance investment and institutional decision-making independence: Ensure investment decisions are free from non-professional interference, subject to effective oversight and accountability frameworks, clearly defined authorities and responsibilities, and proper conflict-of-interest management, safeguarding social security funds while balancing safety, liquidity, returns, and the rights of insured individuals and current and future generations.

8. Establish a national interconnection and data-sharing system: Develop an integrated national framework for data exchange between social security and social insurance institutions, government bodies, and relevant non-governmental organizations, based on standardized interoperability and data governance criteria, improving data accuracy and supporting evidence-based decision-making.

9. Accelerate digital transformation and electronic services: Develop digital infrastructure, strengthen cybersecurity, and protect data privacy and confidentiality, ensuring service efficiency, continuity, and inclusiveness, and facilitating access to services for insured individuals and employers.

10. Strengthen risk management and early warning systems: Establish comprehensive frameworks for managing financial, investment, operational, and demographic risks, including early warning indicators, stress tests, and periodic scenario analyses, enabling institutions to proactively respond to economic, financial, and market disruptions.

11. Enhance Arab cooperation through establishing effective institutional frameworks for exchanging expertise, data, and comparative studies among Arab countries, contributing to the development of social protection policies and systems, working to protect workers during mobility across Arab states and ensuring continuity of their social protection rights (Arab Agreement No. 14), alongside developing and issuing joint guidelines and principles in areas of governance, investment, financial sustainability, and digital transformation, taking into account each country’s legal, economic, and social characteristics, thereby promoting Arab integration and enhancing the efficiency of social security and social insurance institutions."