The UAE economy has the flexibility necessary to deal with international challenges

The International Monetary Fund expert delegation concluded its visit to the UAE, which lasted from July 7 to 16, and the visit witnessed a discussion of the latest economic and financial developments, future prospects, and policy priorities of the concerned authorities.

The delegation of International Monetary Fund experts praised the remarkable flexibility shown by the UAE economy in light of the geopolitical changes in the Middle East region, supported by solid economic foundations and abundant reserves, in addition to the speed of response and the accuracy of directing supportive measures.

While chairing the meeting with the IMF delegation, the Governor of the Central Bank and the UAE Governor at the International Monetary Fund, Khaled Mohammed Balama, stressed the importance of consultations in enhancing communication and exchanging views on the latest economic and financial developments in the UAE.

He said: “These consultations represent an important platform to enhance existing cooperation with the International Monetary Fund and exchange visions on the latest developments and future priorities,” praising the strong cooperation between the relevant authorities in the country. He stressed the continuation of work to consolidate monetary and financial stability, and enhance the readiness of the financial system and its capabilities to keep pace with regional and global changes and developments, which confirms the positive results of the visit, the strength of the national economy and the soundness of the financial sector.

The head of the IMF expert delegation, Saeed Bakhash, added: “The UAE’s economy has shown great flexibility in the face of geopolitical developments in the Middle East region. Solid foundations, abundant reserves, advanced readiness, and rapid response contributed to limiting the repercussions. The supportive measures, which were characterized by good timing and precision in targeting, also helped maintain financial stability, ensure the continuity of basic supply chains, support affected sectors and families, and maintain market confidence, which confirms the ability of UAE institutions to deal efficiently with external shocks.”

The delegation stressed that the banking sector in the UAE enjoys strong levels of capital and liquidity, with continued credit growth, benefiting from the strength of the financial centers that the banks established prior to regional developments. The delegation noted the role of the “Emirates Central Bank’s proactive support package to enhance the flexibility of financial institutions,” which the Central Bank launched in mid-March in supporting the stability of the financial sector, raising the readiness of financial institutions, and enabling them to continue their work.

The delegation pointed out that the flexibility of trade, aviation and logistics services, in addition to the continued strength of local demand, contributed to supporting economic activity and limiting the effects of regional developments. The delegation also expected the continued achievement of a surplus in public finances, supported by the rise in oil prices, the forward-looking approach in preparing budgets, and the strength of policy-making, while the low levels of public debt provide ample financial space.

The Central Bank assumed leadership of the national work team concerned with the visit, managed strategic coordination with federal and local authorities, and prepared the work program.

In preparation for the visit, the Central Bank organized a workshop for the concerned authorities, during which the objectives of the consultations were reviewed, which enhanced the readiness of the parties and the integration of their participation.

On the other hand, the delegation’s visit to the Central Bank of the Emirates included a tour of the Cybersecurity Operations Center, during which it was briefed on the Central Bank’s system in the field of cybersecurity, and the mechanisms for employing artificial intelligence to enhance operational efficiency, support risk management, and develop institutional capabilities.

At the conclusion of the visit, Khaled Muhammad Balamma chaired the final meeting of the delegation, during which the most prominent results of the meetings were reviewed and the latest developments were discussed.

• The country’s banking sector enjoys strong levels of capital and liquidity, with continued credit growth, benefiting from the strength of the financial positions that the banks established prior to regional developments.