CBUAE Governor Affirms UAE Commitment to Multilateral Efforts for Global Economic Stability

The Emirates News Agency reported that Governor Khaled Mohamed Balama delivered the UAE keynote at the high-level gathering of MENAP central bank governors and finance ministers with the IMF this week in Bangkok with IMF Managing Director Kristalina Georgieva in attendance. Balama outlined how the UAE has positioned itself as a model of structural resilience through diversification sound policies and investments in human capital and technology. He added that robust fiscal buffers low public debt and substantial sovereign assets have sustained investor confidence despite regional challenges and global uncertainty. In his address Balama noted that regional experiences show resilience depends on rapid adaptation to changing conditions and the development of financial buffers ahead of shocks. The governor warned that risks to the global economy remain elevated amid geopolitical tensions and stressed the need to strengthen cooperation frameworks to protect growth prospects and mitigate inflation. He expressed the UAE’s appreciation for the IMF’s central role in advancing stability across the region according to the Emirates News Agency. A Central Bank of the UAE assessment found banking assets rose 12.9 percent year on year by the end of August 2026 while the non-performing loans ratio fell to 2.6 percent with the net ratio at 1.2 percent. Capital adequacy held at 17 percent and the liquidity coverage ratio exceeded 146.6 percent both well above global regulatory thresholds. These indicators reflect effective risk management and alignment with international standards the assessment indicated. International Monetary Fund data projects a 3.9 percent contraction for the UAE economy in 2026 before a 7.7 percent rebound in 2027 fueled by expanded oil capacity and non-oil activity. Comparable World Bank estimates point to a 9.5 percent expansion in 2027 following a 1.6 percent decline this year. The forecasts highlight the underlying strength that has enabled the UAE to navigate external pressures while maintaining its role in global forums. Bilateral sessions during the annual meetings included talks with the Bank of Korea and the Monetary Authority of Singapore to advance financial cooperation and expertise sharing. International experts praised the UAE financial system as a successful model for resilience and adaptation to sector changes. World Bank Global Director Sophie Sirtaine commended efforts to develop the sector and build systems that promote stability in remarks to the Emirates News Agency.