Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has praised the United Arab Emirates (UAE) for its impressive growth in non-oil trade. This acknowledgment came during her keynote address at the Arab Fiscal Forum, where she emphasized the UAE’s successful diversification efforts.

### Arab Economies on the Rise

Georgieva pointed out that, despite the global economic challenges, Arab nations are projected to achieve a growth rate of 3.7 percent. This growth is attributed to rising oil production as well as a resurgence in non-oil sectors, indicating a balanced recovery within the region. Such figures not only reflect economic resilience but also signal a shift toward more sustainable economic frameworks in these countries.

In her address, Georgieva highlighted the expected global economic growth, predicting a 3.2 percent increase by 2026, thanks to stronger worldwide demand. This optimistic forecast comes at a time when many economies are grappling with inflationary pressures. She noted that global inflation is expected to decline further, with projections indicating a drop to 3.8 percent in 2026 and potentially 3.4 percent by 2027. This decrease can be attributed to lower energy prices and enhanced efficiency in global supply chains, which should provide a more stable economic environment.

### Renewed Investor Confidence

Georgieva also noted significant positive trends in the Arab region, including the return of two Arab nations to international debt markets after being absent for over three years. This development signifies a strengthening of public finances and a revival of investor confidence, essential for long-term economic health. Furthermore, she observed that remittance inflows to Arab countries have risen by over 5 percent, aided by a rebound in global tourism and improvements in labor markets. These increased financial flows are vital in bolstering economic and social stability throughout the region.

### The Focus on Fiscal Policies

The Arab Fiscal Forum is centered around discussions on the future of fiscal policies in the region. Key topics include the integration of governmental technology and artificial intelligence to improve public spending efficiency. These innovations are pivotal for managing resources better and ensuring sustainable development. Additionally, the forum emphasizes the importance of public-private partnerships, vital for driving future growth and meeting the challenges of a rapidly changing economic landscape.

In summary, the UAE’s ability to diversify its economy, coupled with the positive growth projections for Arab nations, confirms a shift toward more resilient and diversified economic structures. With continuous investments in technology and enhanced investor confidence, the region is well-positioned to navigate the complexities of the global economy in the coming years.