Director of the International Monetary Fund: Arab economies are likely to grow by 3.7%, driven by increased oil production and the recovery of non-oil sectors
Dubai, February 2, 2017 (WAM) – Her Excellency Kristalina Georgieva, Director of the International Monetary Fund, confirmed that Arab economies are likely to achieve growth of 3.7% during the coming period, driven by increased oil production and the continued recovery of non-oil sectors, an indication of improved regional economic performance despite global challenges.
In her speech during the opening of the Arab Public Finance Forum, which is being held within the activities of the World Government Summit 2026 in Dubai, with the participation of finance ministers, economic experts and representatives of international and regional financial institutions, Her Excellency explained that the global economy is recording an estimated growth of 3.2% during the current year, exceeding previous expectations, driven by improved levels of global demand and a decline in financial pressures in a number of major economies.
She pointed out that global inflation rates continue their downward path to reach about 3.8% in 2026, before falling to 3.4% by 2027, supported by lower energy prices and improved efficiency of global supply chains.
Regarding Arab economies, she confirmed that the region is witnessing positive indicators, most notably the return of two Arab countries to international debt markets after an absence of more than three years, an indication of improved public financial conditions and the restoration of investor confidence.
She added that financial transfers to Arab countries recorded a growth exceeding 5%, driven by the recovery of the tourism sector and the improvement of global labor markets, which enhances financial and social stability in a number of countries.
In a related context, Her Excellency Georgieva indicated that the UAE continues to consolidate its economic model based on diversification, as non-oil activities represent about 80% of the gross domestic product, in a clear indication of the success of the country’s long-term economic policies.
During its sessions, the Public Finance Forum for Arab Countries discusses the future of financial policies in the region, and the role of government technology and artificial intelligence in enhancing the efficiency of public spending and financing sustainable development, in addition to developing partnerships between the government and private sectors.
The forum comes in light of an increasing trend to enhance financial sustainability and align economic policies with the requirements of climate action and digital transformation, which contributes to supporting the process of sustainable economic growth in Arab countries.
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