The International Monetary Fund team that visited the UAE from 7 to 16 July has concluded its mission after reviewing the latest economic and financial developments, as well as the country’s outlook and policy priorities with the relevant authorities.
The IMF delegation praised the UAE economy’s notable resilience in the face of geopolitical developments in the Middle East, saying it has been underpinned by strong economic fundamentals, ample reserves, and a swift, well-targeted policy response.
Central bank stresses importance of consultations
During the meeting with the IMF delegation, Khaled Mohamed Balama, Governor of the Central Bank of the UAE and the UAE’s Governor to the IMF, underlined the importance of these consultations in strengthening communication and exchanging views on the latest economic and financial developments in the country.
He said: «تُمثل هذه المشاورات منصة مهمة لتعزيز التعاون القائم مع صندوق النقد الدولي، وتبادل الرؤى بشأن آخر المستجدات والأولويات المستقبلية»، praising the close cooperation between the authorities in the UAE. He added that work would continue to consolidate monetary and financial stability and to strengthen the readiness of the financial system and its ability to keep pace with regional and global developments, reflecting the positive outcome of the visit and the strength of the national economy and financial sector.
IMF notes resilience across key sectors
Saeed Bakhash, head of the IMF mission, said: «أظهر اقتصاد دولة الإمارات مرونة كبيرة في مواجهة التطورات الجيوسياسية في منطقة الشرق الأوسط. وأسهمت الأسس المتينة، والاحتياطيات الوفيرة، والجاهزية المتقدمة، والاستجابة السريعة في الحد من التداعيات. كما ساعدت التدابير الداعمة، التي اتسمت بحسن التوقيت ودقة التوجيه، في المحافظة على الاستقرار المالي، وضمان استمرارية سلاسل الإمداد الأساسية، ودعم القطاعات والأسر المتأثرة، والحفاظ على ثقة الأسواق، بما يؤكد قدرة مؤسسات دولة الإمارات على التعامل بكفاءة مع الصدمات الخارجية».
The delegation said the UAE banking sector remains well capitalised and highly liquid, with credit continuing to grow, supported by the strong financial positions banks had already built before the regional developments. It also highlighted the role of the Central Bank of the UAE’s proactive package to enhance the resilience of financial institutions, launched in mid-March, in supporting financial stability, improving institutional readiness, and enabling firms to continue operating.
The delegation added that the resilience of trade, aviation and logistics, together with continued strength in domestic demand, helped sustain economic activity and limit the impact of regional developments. It also expected the UAE to continue recording a fiscal surplus, supported by higher oil prices, a forward-looking budget approach and strong policymaking, while low public debt levels provide ample fiscal space.
Central bank led coordination efforts
The Central Bank led the national working team for the visit, managing strategic coordination with federal and local entities and preparing the programme of work.
As part of the preparations, the Central Bank organised a workshop for the relevant entities, during which the objectives of the consultations were reviewed, helping to strengthen readiness and ensure coordinated participation.
During the visit to the Central Bank of the UAE, the delegation also toured the cyber security operations centre, where it reviewed the Central Bank’s cyber security framework and its use of artificial intelligence to improve operational efficiency, support risk management and develop institutional capabilities.
At the end of the visit, Khaled Mohamed Balama chaired the final meeting with the delegation, during which the main findings of the discussions and the latest developments were reviewed.
• The banking sector in the UAE has strong levels of capital and liquidity, with credit continuing to grow, benefiting from the solid financial positions banks had built before the regional developments.