Ninth Arab Fiscal Forum focuses on enhancing public finance resilience

The Ninth Arab Fiscal Forum, jointly organised by the Ministry of Finance, the Arab Monetary Fund and the International Monetary Fund, kicked off on Monday in Dubai as part of the World Governments Summit’s 2025 preliminary day.

The forum brings together Arab finance ministers, economists, and officials from international and regional financial institutions to explore ways to strengthen public finance resilience amid global economic challenges.

The discussions will focus on designing efficient and equitable fiscal policies to address debt vulnerabilities and future challenges amid tighter financing constraints. Key topics include subsidy reforms, tax administration, and public sector enterprise reforms.​

The event includes four panel discussions alongside the Ministerial Roundtable as its closing session.

The International Monterey Fund (IMF) has projected global growth to remain at 3.3 per cent this year and the next, before slowing to just above 3 per cent over the next five years, well below the historical average.

IMF Managing Director Kristalina Georgieva said that growth in the Middle East and North Africa is expected to rebound to about 3.6 per cent in 2025, driven by a recovery in oil production and an easing of regional conflicts.

“Policymakers have generally succeeded in taming inflation, but not everywhere, with inflation picking up again in some countries. This could lead to a divergence in interest rates across countries and higher borrowing costs for emerging market and developing economies,” Georgieva said at the 9th Arab Fiscal Forum, part of the World Governments Summit 2025 preliminary day in Dubai.

She warned that global public debt is projected to hit 100 per cent of global GDP by 2030. “Many countries in this region face similar pressures, with debt levels exceeding 70 per cent of GDP. This poses the risk of them becoming trapped in a low-growth, high-debt scenario,” she added.

Georgieva highlighted the challenges faced by governments, including job creation, strengthening social safety nets, adapting to national security and reconstruction needs, building resilience to natural disasters and supporting economic diversification.

She also noted, “Digital innovation, with AI technologies, is expected to raise UAE’s GDP significantly by 2030. More R&D spending will further enhance productivity.” Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, noted the disparity in growth rates between emerging economies and middle-income countries, with some facing significant slowdowns due to financial and geopolitical pressures.

He emphasised the continued role of the IMF in providing financial and technical support to developing nations and strengthening structural reforms to stimulate sustainable growth.

Monday marked the Day Zero of the World Governments Summit 2025, which takes place in Dubai and runs until February 13th under the theme ‘Shaping Future Governments’.

Day Zero featured several key forums, including the Arab Fiscal Forum, the Arab Meeting for Young Leaders and the Young Arab Leaders Forum, amidst wide participation from prominent officials, visionaries, decision makers and a host of international organisations.

The 12th edition of the World Governments Summit is seeing record international participation, featuring over 30 heads of state and government, more than 80 international and regional organisations and global institutions, 140 government delegations alongside thought leaders and experts discussing major global trends during more than 200 interactive sessions featuring over 300 global speakers. The 9th Arab Fiscal Forum, jointly organised by the Arab Monetary Fund (AMF), the International Monetary Fund (IMF), and the Ministry of Finance, will focus on designing efficient and equitable fiscal policies to address debt vulnerabilities and future challenges amid tighter financing constraints. Key topics include subsidy reforms, tax administration, and public sector enterprise reforms.

Speakers at the forum’s opening session include Mohamed Al Hussaini, Minister of State for Financial Affairs in the UAE; Kristalina Georgieva, Managing Director of the International Monetary Fund; Dr. Fahad Al Turki, Director-General and Chairman of the Board of the Arab Monetary Fund.

Other sessions at the forum, attended by Arab ministers of finance and governors of central banks, will address the Macroeconomic Developments and Implications for Fiscal Position; Options for Fiscal Policy Design in the Face of Mounting Debt Pressures, Fiscal Policy and Climate Resilience, and Revamping Tax Systems for Large Structural Economic Change.

Day Zero will also feature the Arab Meeting for Young Leaders, a shared platform for collaboration between decision-makers and Arab youth, that is characterised by its extensive engagement of youth in all phases, including preparation, implementation, attendance, and participation.