UAE Demonstrates Economic Resilience, Outperforms Region: IMF Official

In a recent interview with the Emirates News Agency (WAM) at the World Governments Summit (WGS), Jihad Azour, the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), praised the United Arab Emirates for its robust economic performance amidst global challenges. Azour highlighted that the UAE has outperformed other regional economies, achieving growth rates exceeding 4%. This success is attributed significantly to the strength of the UAE's non-oil sector, which has played a crucial role in bolstering the country's economic resilience.

Azour also emphasized the importance of the UAE's economic diversification strategy. This approach has notably enhanced the efficiency of the private sector, contributing to the nation's overall economic stability and growth. The strategic partnership between the IMF and WGS was underscored by Azour, who pointed out the significance of discussions held during the Annual Arab Fiscal Forum. This event, organized in collaboration with the Arab Monetary Fund, gathers Arab finance ministers and central bank governors to deliberate on financial and economic prospects within the region.

The focus of this year's WGS on climate finance, artificial intelligence, and international cooperation was highlighted by Azour. He also mentioned that several studies launched by the IMF as part of the summit's activities aim to address these critical areas. Despite a positive outlook on the UAE's economy, Azour noted a downward revision in forecasts for Middle East and Central Asia economies for 2024 by 0.5 percentage points, attributing this adjustment to geopolitical tensions and temporary reductions in oil production.

The IMF now expects these economies to grow by 2.9 percent in 2024, with a projected increase to 4.2 percent in 2025. Global economic growth expectations have also been revised upwards by the IMF to 3.1 percent in 2024 and 3.2 percent in 2025. Despite varied performance across the region's economies in 2024, with uneven growth anticipated, non-oil growth is expected to remain strong. Azour concluded with a note on positive signs amid expectations of a decrease in global inflation rates in 2024.

This detailed analysis provided by Jihad Azour offers valuable insights into the economic landscape of the Middle East and Central Asia, highlighting both challenges and opportunities facing these regions in the coming years.

With inputs from WAM