Kristalina Georgieva highlighted profound shifts in geopolitics, trade policy, technology and demographics that are converging to create enormous uncertainty worldwide, according to her address at the tenth annual Arab Fiscal Forum. Despite these challenges, the IMF managing director noted that global economic growth has proven better than initially anticipated although resilience will face significant tests in the period ahead. The gathering at Madinat Jumeirah, held on the sidelines of the World Government Summit, convened regional policymakers to discuss fiscal priorities, developmental finance and expenditure reforms.
UAE Minister of State for Financial Affairs Mohamed Al Hussaini reported that the national economy recorded 4 percent growth in 2024 with GDP reaching 1.77 trillion dirhams, of which the non-oil sector accounted for nearly 80 percent. Georgieva described the achievement as incredibly impressive and positioned the UAE as a model for economic diversification across energy-exporting countries in the region. Subsequent Ministry of Economy data placed non-oil growth at 5.3 percent in the first quarter of 2025, lifting the sector’s contribution to a record 77.3 percent of real GDP.
The IMF at the time projected growth across Arab economies to rise to about 3.7 percent, supported by higher oil production in some states, resilient remittances and a tourism rebound. Georgieva warned that risks remain elevated, citing geopolitical tensions, rising public debt, fiscal pressures and oil price volatility, and stated that from the bottom of her heart, of all risks, conflict is the worst. An April 2026 IMF assessment later revised global growth projections to 3.1 percent for 2026 under assumptions of limited conflict, with pressures concentrated in emerging markets.
The managing director urged governments to rebuild fiscal buffers, improve transparency and create enabling conditions for private sector expansion rather than attempting to drive growth directly. She told delegates that sound policies and strong institutions represent the best protection against future vulnerabilities that will inevitably arise. Georgieva also pointed to substantial advances since the inaugural Arab Fiscal Forum held a decade earlier in Abu Dhabi, including wider adoption of value-added tax, excise duties, subsidy reforms and enhanced public financial management.
Georgieva praised the UAE for ensuring artificial intelligence diffuses horizontally across the entire economy instead of remaining confined to specific sectors. This broad integration, she added, will prove critical to lifting productivity in the years ahead and must be accompanied by sustained investment in skills and human capital. The IMF chief called for balanced approaches that harness technological gains while mitigating effects on employment and inequality.
Arab countries have achieved tremendous progress in fiscal transparency and institutional strengthening over the past ten years, according to the managing director. She encouraged continued reforms to safeguard stability and shared prosperity in an increasingly uncertain global environment. Federal Competitiveness and Statistics Centre figures show UAE real GDP expanded 6.2 percent in 2025 to AED 1.9 trillion, with non-oil activities growing 6.8 percent and comprising 77 percent of output.
