Ministry of Finance, International Monetary Fund Explore Latest Developments in International Monetary and Financial Systems
06 October 2023
06 October 2023
The UAE Ministry of Finance held a meeting with the International Monetary Fund (IMF) Staff Mission at the Ministry’s headquarters in Abu Dhabi to discuss matters related to government budgets and revenues, overall monetary policies, debt management, tax policies and legislations, and government asset management at the Ministry.
His Excellency Younis Haji Al Khoori, Undersecretary of Ministry of Finance, Ahmad bin Sulaiman, Director of the Federal Debt Management Office, Fatima AlSheikh, Director of Tax Policies and Legislations Department, Mariam Al Hajri, Deputy Director of the General Budget Department, Moza Saeed Al Matroushi, Head of Organizations, Institutions and Government Investments, and several specialists from the Ministry, met with Dr. Ali Al Eid, Head of the IMF Staff Mission, accompanied by several of IMF’s specialists and staff members.
Both parties explored the latest developments in international monetary and financial systems, and the local, regional, and international economic landscape. The Ministry of Finance presented environmental protection expenditure data to the IMF, to be published on the Climate Change Indicators Dashboard.
His Excellency Younis Al Khoori emphasized the significance of the Ministry’s meetings with the IMF to exchange views about the UAE’s fiscal policies. He said: “The UAE continues to adopt innovative strategies that support growth and diversify the economy, reflecting on the stability of the financial system, the strength and flexibility of the national economy, and key economic development indicators.”
His Excellency added: “The UAE’s economy is witnessing exceptional growth in 2023, and the federal budget allocated for the fiscal year 2023 saw an increase, with total estimated expenditures exceeding AED63 billion and more than that for revenues. The second quarter of the year saw an increase in the use of goods and services and the acquisition of non-financial assets in most government sectors. Amidst this performance, the Ministry of Finance continues to coordinate with the IMF to enhance the performance of fiscal and monetary policies and ensure their alignment with best international practices and standards, especially where the global economy faces variables that require unified efforts and visions to find comprehensive developmental, economic, social, and environmental solutions.”
At the end of the meeting, the two sides addressed the acceleration of the UAE’s economy, and the UAE led the Arab world in sovereign credit ratings from major global credit rating agencies. In 2023, it received a sovereign rating of (AA-) with a stable outlook from Fitch and a rating of (Aa2) with a stable outlook from Moody’s.
The Ministry of Finance and the IMF Staff Mission also discussed the importance of enhancing the transparency of the federal government’s financial data to strengthen its borrowing capacity and creditworthiness, commitment to international accounting standards, and best global practices to improve the credibility and reliability of the federal government’s financial data.
The two sides also discussed the latest amendments to tax legislation, the importance of enhancing revenue and expenditure forecasting, facilitating budget preparation and financial planning more smoothly, improving the utilization of assets owned by the federal government, and the financial, tax, economic, and social benefits resulting from the implementation of government asset management projects.
Additionally, the role of sovereign wealth funds in stabilizing the financial sector, the success of the UAE’s issuances of federal treasury bonds and Islamic sukuk, their role in diversifying financing sources, activating the local financial and banking sector, providing safe investment alternatives for local and foreign investors, and the high financial solvency of the banking system in the country were discussed.