IMF visit to UAE highlights economic resilience and strong banking safeguards
IMF visit to UAE ends with praise for economic resilience, robust bank capital and liquidity, Central Bank review of policy, cybersecurity and fiscal outlook.
The IMF visit to UAE, carried out between July 7 and July 16, concluded with officials commending the country’s capacity to absorb regional shocks while maintaining financial stability. The delegation of IMF experts met with UAE authorities to review recent economic and financial developments and to discuss policy priorities going forward. Central Bank Governor Khalid Mohamed Balama chaired the closing session, underscoring the consultations’ role in sustaining policy coordination.
IMF delegation concludes consultations with UAE authorities
The IMF team wrapped up a nine-day programme of meetings that covered macroeconomic performance, fiscal trends and the financial sector. Delegates engaged with federal and local entities to assess current risks and to exchange views on near-term priorities. The consultations formed part of ongoing cooperation aimed at reinforcing transparency and policy alignment.
IMF experts praise resilience and policy responsiveness
IMF experts highlighted the notable resilience of the UAE economy in the face of regional geopolitical tensions. They pointed to strong macroeconomic fundamentals, ample external reserves and timely, well-targeted policy measures as key factors limiting spillovers. The delegation noted that the swift calibration of supportive measures helped preserve market confidence and financial system stability.
Central Bank leads national coordination and preparedness
The Central Bank of the UAE took the lead in organising and coordinating the national engagement with the IMF delegation. Governor Khalid Mohamed Balama chaired the final meeting and reiterated the importance of these consultations for information sharing and policy dialogue. Ahead of the visit, the Central Bank convened a preparatory workshop to align federal and local participants and streamline the agenda.
Banking sector strength underlined by capital and liquidity metrics
The IMF report emphasised that UAE banks entered the recent regional developments with robust capital buffers and high liquidity coverage. Credit continued to grow, supported by healthy balance sheets that were strengthened before recent events. Delegates also acknowledged the effectiveness of the Central Bank’s proactive support package, introduced in mid-March, in enhancing institutional resilience and maintaining operational continuity.
Trade, aviation and logistics bolstered economic activity
Delegation members observed that continued movement in trade, aviation and logistics, together with persistent domestic demand, helped cushion the economy from external shocks. The resilience of supply chains and transport links contributed to sustained activity across several sectors. This operational continuity, the IMF said, played a material role in limiting disruptions to firms and households.
Fiscal position and policy framework provide room for manoeuvre
The IMF experts expected the UAE to continue recording a fiscal surplus, supported by higher oil revenues and forward-looking budgetary practices. Low public debt levels were identified as creating significant fiscal space for policymakers if additional measures are required. The delegation noted that a prudent fiscal stance, combined with effective policy implementation, strengthens the authorities’ capacity to respond to evolving risks.
Central Bank cybersecurity and AI capabilities reviewed during visit
As part of its programme, the IMF delegation toured the Central Bank’s cyber operations centre and examined the institution’s approach to digital risk management. Officials reviewed how artificial intelligence tools are being used to enhance operational efficiency and to support risk oversight. The delegation said such investments in technology and cyber defences are important complements to traditional prudential measures.
The IMF’s mission leader praised the collaborative approach taken by UAE authorities and reaffirmed the value of regular consultations to monitor developments and refine policy responses. UAE officials signalled their intent to continue strengthening monetary and financial frameworks while preserving macro-financial stability. Follow-up exchanges are expected as part of the ongoing dialogue between the IMF and UAE institutions.