UAE Continues to Consolidate its Diversified Economic Model

IMF Managing Director Kristalina Georgieva

IMF Managing Director.. UAE Continues to Consolidate its Diversified Economic Model

IMF Managing Director Kristalina Georgieva stated that the UAE continues to consolidate its diversified economic model, with non-oil activities representing approximately 80% of GDP, a clear indicator of the success of the country's long-term economic policies.

In her address on Monday at the opening of the Arab Public Finance Forum, held as part of the World Government Summit 2026 in Dubai, with the participation of finance ministers, economists, and representatives of international and regional financial institutions, Georgieva explained that global growth has remained remarkably resilient despite profound shifts in geopolitical conditions, trade policies, technology, and demographics.

The IMF Managing Director affirmed that Arab economies are projected to achieve 3.7% growth in the coming period, driven by increased oil production and the continued recovery of non-oil sectors, indicating improved economic performance despite global challenges.

Georgieva predicted that global inflation would fall to 3.8% this year and to 3.4% in 2027, driven by declining demand and lower energy prices.

During the preparatory events of the World Government Summit today, Georgieva called for greater trade integration. She stated, "In a world characterized by fragmented trade, strengthening trade integration is crucial."

Kristalina Georgieva added, "What we have seen this year is that trade has not declined as much as we feared; in fact, it is growing at a slightly slower pace than global growth."

She explained that the global economy is registering growth of approximately 3.2% this year, exceeding previous forecasts, fueled by improved global demand and easing financial pressures in several major economies.

Regarding Arab economies, she affirmed 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, signifying improved public finances and a restoration of investor confidence.

She added that remittances to Arab countries have grown by more than 5%, driven by the recovery of the tourism sector and improved global labor markets, which strengthens financial and social stability in several countries.

The Arab Public Finance Forum is discussing the future of fiscal policies in the region, the role of government technology and artificial intelligence in enhancing the efficiency of public spending and financing sustainable development, as well as developing public-private partnerships.

The forum is being held amidst a growing trend to enhance fiscal sustainability and align economic policies with the requirements of climate action and digital transformation, thereby contributing to supporting sustainable economic growth in Arab countries.