Abu Dhabi: Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates (CBUAE), met with a mission headed by Ali Al-Eyd from the International Monetary Fund (IMF) to talk about the financial and economic developments in the UAE during the 2024 Article IV Consultation.
A review of the financial and banking landscape in the United Arab Emirates and the CBUAE’s monetary policy execution, particularly with regard to the Dirham Monetary Framework, were covered in the conference.
The CBUAE’s initiatives to preserve enough liquidity and protect the banking industry, modernize the financial infrastructure of the UAE, digitize local and international payment systems, and fight money laundering and terrorism financing were also discussed.
Khaled Mohamed Balama stated that, “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. The IMF mission’s recognition of our efforts to safeguard financial and monetary stability is encouraging as we continue to follow a risk-based approach and a robust supervisory framework. This is in addition to the CBUAE’s initiatives aimed at promoting innovation, digitalising the financial sector, and combatting financial crimes. We are committed to continued collaboration with our international stakeholders to ensure the safety and integrity of the global financial system.”
The head of the IMF Article IV Consultation mission, Ali Al-Eyd, acknowledged the UAE’s strong economic development in a statement after the mission was over. This growth was fueled by solid domestic activity in a number of sectors, notably financial services.
He pointed out that overall bank capital and liquidity buffers are sizable, and overall asset quality has increased. Al-Eyd praised the establishment of the UAE Financial Stability Council as well as initiatives to finish implementing the Dirham Monetary Framework and create more fiscal space, both of which will increase the stability of the UAE’s financial system.
He also praised the efforts to combat money laundering and the financing of terrorism, highlighting the implementation of the National AML/CFT Strategy and Action Plan and the removal of the affected jurisdictions from the Financial Action Task Force’s list of enhanced monitoring. Other achievements included the digitalization of the financial system and payment landscape.