Ninth Arab Fiscal Forum Aims To Enhance Financial And Economic Integration Among Arab Countries

The 9th Arab Fiscal Forum wrapped up with fruitful discussions on key economic issues impacting Arab and global economies. H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, highlighted the forum's role in promoting financial integration among Arab nations. He stressed the need for modern financial systems that improve spending efficiency and diversify revenue sources through advanced technologies like digitisation and AI.

H.H. Sheikh Maktoum emphasised the importance of flexible financial policies to adapt to global economic changes and support sustainable growth. Regional cooperation is crucial for developing innovative policies that enhance investment appeal in Arab economies. He stated, "The Forum's themes and outcomes will contribute to shaping future financial visions that support development strategies."

The Ministry of Finance organised the forum with the Arab Monetary Fund and International Monetary Fund before the World Governments Summit 2025 in Dubai from 11 to 13 February. Attendees included Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs; Kristalina Georgieva, IMF Managing Director; and H.E. Dr. Fahd bin Mohammed Al-Turki, Director General of the Arab Monetary Fund.

Mohamed bin Hadi Al Hussaini stressed adopting financial strategies for sustainable growth in Arab countries. He noted that current times demand efforts to keep pace with global economic changes by enhancing spending efficiency and leveraging modern technologies for advanced financial systems.

Al Hussaini highlighted the UAE's approach to financial sustainability through legislation development, bond programs, and investment base expansion. He underscored the private sector's role in economic growth, advocating for an environment fostering innovation and opportunities for entrepreneurs.

He also pointed out that developing financial systems should align with a vision utilising digital transformation and AI for efficiency and transparency. Regional cooperation is vital in designing policies for sustainable stability amid global changes.

Panel Discussions on Economic Challenges

The forum featured four panel discussions on critical economic issues. The first session, chaired by H.E. Dr. Muhammad Sulaiman Al Jasser of the Islamic Development Bank, focused on macroeconomic developments affecting fiscal positions. It addressed shocks like conflicts and climate disasters impacting growth prospects.

The second session discussed fiscal policy design amid high debt levels, chaired by Sheikh Salman bin Khalifa Al Khalifa of Bahrain. Strategies were reviewed to address budget deficits and rising interest payments effectively.

Climate Resilience and Tax System Revamp

The third session explored fiscal policy's role in climate resilience, chaired by Saudi Arabia's Finance Minister Mohammed Abdullah Al-Jadaan. It highlighted climate change costs in the region and stressed enhancing policies for adaptation.

The fourth session focused on revamping tax systems to align with structural economic changes, chaired by Mohamed bin Hadi Al Hussaini. Discussions included using AI to improve tax administration efficiency.

Strengthening Fiscal Policies

A ministerial roundtable concluded the forum with Arab finance ministers emphasising cooperation among nations to tackle common challenges. The goal is developing sustainable financial policies promoting regional economic stability.

Kristalina Georgieva remarked on IMF's partnership with Arab countries: "Today, this partnership is more crucial than ever as global and regional landscapes undergo significant transformation." Dr. Fahd bin Mohammed Al-Turki added: "The Arab Fiscal Forum provides a key platform for strengthening the resilience of fiscal policies in Arab countries."

With inputs from WAM