IMF chief praises UAE's model of economic diversification

Kristalina Georgieva, Managing Director of International Monetary Fund (IMF), has commended the UAE's non-oil trade growth as a testimony of its successful efforts at diversifying its economy, during her opening address at Arab Fiscal Forum.

She noted that Arab economies, despite global challenges, are expected to record 3.7 per cent growth driven by increased oil production and recovery of non-oil sectors.

Georgieva noted that the global economy is projected to grow by around 3.2 per cent in 2026, surpassing previous forecasts and backed by stronger global demand.

She added that global inflation continues its downward trend, reaching about 3.8 per cent in 2026 before falling further to 3.4 per cent by 2027, aided by lower energy prices and improved efficiency in global supply chains.

Regarding Arab economies, Georgieva highlighted positive indicators, including the return of two Arab countries to international debt markets after an absence of more than three years, signalling stronger public finances and renewed investor confidence.

She added that remittance flows to Arab countries grew by more than 5 per cent, supported by the recovery of tourism and improving labour markets worldwide, helping enhance financial and social stability in several states.

The Arab Fiscal Forum is discussing the future of fiscal policies in the region, the role of government technology and artificial intelligence in improving public spending efficiency, financing sustainable development, and advancing partnerships between the public and private sectors.