CBUAE Governor And IMF Mission Examine UAE's Financial And Banking Developments

Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), recently met with a mission from the International Monetary Fund (IMF) led by Ali Al-Eyd. The meeting took place during the 2024 Article IV Consultation and focused on the UAE’s economic and financial developments.

The discussions included a comprehensive review of the UAE’s financial and banking conditions. The CBUAE's implementation of monetary policy, particularly concerning the Dirham Monetary Framework, was a key topic. Efforts to maintain sufficient liquidity and safeguard the banking sector were also highlighted.

Transforming Financial Infrastructure

The CBUAE is actively working to transform the UAE’s financial infrastructure. This includes digitising domestic and cross-border payment systems. Additionally, significant efforts are being made to combat money laundering and the financing of terrorism.

Governor Balama’s Remarks

Khaled Mohamed Balama expressed appreciation for the continuous consultation and knowledge exchange with the IMF. He stated, "The CBUAE is appreciative of the continuous consultation and knowledge exchange with the IMF as we seek to contribute to sustainable economic growth and bolster the UAE financial sector’s stature in line with international standards."

IMF Mission Chief’s Observations

Ali Al-Eyd, IMF Article IV Consultation’s Mission Chief, acknowledged the UAE’s strong economic growth driven by robust domestic activity across various sectors, including financial services. He noted that banks have considerable capital and liquidity buffers overall, and general asset quality has improved.

Financial Stability Council

Al-Eyd welcomed the creation of the UAE Financial Stability Council. He also praised efforts to continue building fiscal space and complete the implementation of the Dirham Monetary Framework, thereby strengthening the resilience of UAE’s financial system.

Progress in Digitalisation

The progress made in digitalising the financial system and payment landscape was commended. Efforts to combat money laundering and financing of terrorism were particularly noted, including the implementation of the National AML/CFT Strategy and Action Plan.

Recognition from FATF

The removal from the list of jurisdictions under enhanced monitoring by the Financial Action Task Force was highlighted as a significant achievement. This recognition underscores the UAE's commitment to maintaining a robust financial system.

With inputs from WAM