THE IMF AND AUC WRAP UP FIRST MENA ECONOMIC RESEARCH CONFERENCE: STEERING MACROECONOMIC AND STRUCTURAL POLICIES IN A SHIFTING GLOBAL ECONOMIC LANDSCAPE
Following two days of high-level dialogue and expert analysis, the inaugural IMF MENA Economic Annual Research Conference co-organized by the International Monetary Fund (IMF) and the American University in Cairo (AUC), concluded with a strong call for coordinated, evidence-based policy responses to the region's old and new pressing economic challenges. Held on May 18–19, 2025 , the conference served as a critical platform for advancing rigorous research tailored to the realities of the Middle East and North Africa. It brought together global policymakers, academics, government officials and thought leaders to bridge the discussion on global economic issues with regional realities. The event marked a first-of-its-kind collaboration between the IMF and a leading University in the region, reflecting a shared commitment to deepening the link between academic research and policy development.
Jihad Azour, director of the IMF's Middle East and Central Asia Department, noted that
that trade tensions and increasing uncertainty affecting the global economy, alongside ongoing regional conflicts and climate risks, are creating new layers of complexities for MENA policymakers. Azour called for building a regional platform for dialogue and exchange of ideas that connects MENA to world-class research centers to provide reliable analysis and develop workable and innovative policy responses to old and new economic issues facing the region. 'We are deeply grateful to President Ahmad Dallal and AUC for their commitment to fostering dialogue, research, and policy innovation in the region.'
AUC President Ahmad Dallal highlighted the event's role as a vital platform in fostering collaboration between governments, academia and the private sector. 'This is about generating ideas that are globally informed but deeply rooted in the realities of our region,' he noted.
Dallal affirmed that this type of multi-stakeholder engagement is at the heart of AUC's mission and reflects the University's commitment to research, education, and open dialogue as drivers of stability, resilience, and inclusive growth.
Under the theme 'Steering Macroeconomic and Structural Policies in a Shifting Global Economic Landscape,' discussions centered on four pivotal issues shaping the future of the MENA region and the global economy: Fiscal Policy: With public debt at historic highs, experts stressed the importance of rebuilding fiscal buffers while tackling social inequalities, aging populations, and climate pressures. Proposals included reforms in fiscal frameworks and measures to mobilize revenues, including through multinational taxation and more progressive tax systems.
Monetary Policy: Participants reflected on the lessons of recent inflationary shocks, emphasizing the need for more preemptive and well-communicated policy responses to global shocks and sector-specific disruptions, particularly for emerging markets.
Industrial Policy: Speakers examined the renewed interest in industrial policy as a tool to drive inclusive growth, innovation, and climate resilience. The discussion highlighted the need to balance vertical strategies with horizontal reforms that promote private investment, trade integration, and productivity.
Green Transition and AI: The intersection of climate action and digital transformation sparked debate about their potential to reshape labor markets. Recommendations included investing in human capital, developing targeted safety nets, and aligning policy tools to support job creation in low-emission sectors.
Throughout the sessions, there was a clear consensus that the MENA region's economic resilience depends on institutional reforms, cross-border cooperation, and investment in skills and innovation . Participants also underscored the importance of embedding policy in local realities—an approach that both the IMF and AUC pledged to champion moving forward.
In addition to prominent global and regional academics, as well as economists and government officials from across the region, and representatives of international and regional organizations, the conference brought together policymakers, including Rania El Mashat, minister of planning, economic development and international cooperation, Egypt; Youssef Boutros-Ghali, member of the Specialized Council for Economic Development, Egypt; Mahmoud Mohieldin, United Nations special envoy on financing the 2030 Sustainable Development Agenda; and Martin Galstyan, governor of the Central Bank of Armenia.
As Nigel Clarke, IMF deputy managing director concluded, 'This conference is a milestone demonstrating the IMF's commitment to deepening engagement with the research and academic community, as we strive to ensure that the IMF support is not only responsive to the needs of member countries, but also built on rigorous tested analytics and importantly, it's aligned with local realities. Through this kind of multi-stakeholder dialogue, we aim to better understand how all our expertise and resources can be directed towards the most pressing challenges of the region.'
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Nada Mustafa Following two days of high-level dialogue and expert analysis, the inaugural IMF MENA Economic Annual Research Conference co-organized by the International Monetary Fund (IMF) and the American University in Cairo (AUC), concluded with a strong call for coordinated, evidence-based policy responses to the region's old and new pressing economic challenges. Held on May 18–19, 2025, the conference served as a critical platform for advancing rigorous research tailored to the realities of the Middle East and North Africa. It brought together global policymakers, academics, government officials and thought leaders to bridge the discussion on global economic issues with regional realities. The event marked a first-of-its-kind collaboration between the IMF and a leading University in the region, reflecting a shared commitment to deepening the link between academic research and policy development. 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Dallal affirmed that this type of multi-stakeholder engagement is at the heart of AUC's mission and reflects the University's commitment to research, education, and open dialogue as drivers of stability, resilience, and inclusive growth. Under the theme 'Steering Macroeconomic and Structural Policies in a Shifting Global Economic Landscape,' discussions centered on four pivotal issues shaping the future of the MENA region and the global economy: • Fiscal Policy: With public debt at historic highs, experts stressed the importance of rebuilding fiscal buffers while tackling social inequalities, aging populations, and climate pressures. Proposals included reforms in fiscal frameworks and measures to mobilize revenues, including through multinational taxation and more progressive tax systems. • Monetary Policy: Participants reflected on the lessons of recent inflationary shocks, emphasizing the need for more preemptive and well-communicated policy responses to global shocks and sector-specific disruptions, particularly for emerging markets. • Industrial Policy: Speakers examined the renewed interest in industrial policy as a tool to drive inclusive growth, innovation, and climate resilience. The discussion highlighted the need to balance vertical strategies with horizontal reforms that promote private investment, trade integration, and productivity. • Green Transition and AI: The intersection of climate action and digital transformation sparked debate about their potential to reshape labor markets. 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Following two days of high-level dialogue and expert analysis, the inaugural IMF MENA Economic Annual Research Conference co-organized by the International Monetary Fund (IMF) and the American University in Cairo (AUC), concluded with a strong call for coordinated, evidence-based policy responses to the region's old and new pressing economic challenges. Held on May 18–19, 2025 , the conference served as a critical platform for advancing rigorous research tailored to the realities of the Middle East and North Africa. It brought together global policymakers, academics, government officials and thought leaders to bridge the discussion on global economic issues with regional realities. The event marked a first-of-its-kind collaboration between the IMF and a leading University in the region, reflecting a shared commitment to deepening the link between academic research and policy development. Jihad Azour, director of the IMF's Middle East and Central Asia Department, noted that that trade tensions and increasing uncertainty affecting the global economy, alongside ongoing regional conflicts and climate risks, are creating new layers of complexities for MENA policymakers. Azour called for building a regional platform for dialogue and exchange of ideas that connects MENA to world-class research centers to provide reliable analysis and develop workable and innovative policy responses to old and new economic issues facing the region. 'We are deeply grateful to President Ahmad Dallal and AUC for their commitment to fostering dialogue, research, and policy innovation in the region.' AUC President Ahmad Dallal highlighted the event's role as a vital platform in fostering collaboration between governments, academia and the private sector. 'This is about generating ideas that are globally informed but deeply rooted in the realities of our region,' he noted. Dallal affirmed that this type of multi-stakeholder engagement is at the heart of AUC's mission and reflects the University's commitment to research, education, and open dialogue as drivers of stability, resilience, and inclusive growth. Under the theme 'Steering Macroeconomic and Structural Policies in a Shifting Global Economic Landscape,' discussions centered on four pivotal issues shaping the future of the MENA region and the global economy: Fiscal Policy: With public debt at historic highs, experts stressed the importance of rebuilding fiscal buffers while tackling social inequalities, aging populations, and climate pressures. Proposals included reforms in fiscal frameworks and measures to mobilize revenues, including through multinational taxation and more progressive tax systems. Monetary Policy: Participants reflected on the lessons of recent inflationary shocks, emphasizing the need for more preemptive and well-communicated policy responses to global shocks and sector-specific disruptions, particularly for emerging markets. Industrial Policy: Speakers examined the renewed interest in industrial policy as a tool to drive inclusive growth, innovation, and climate resilience. The discussion highlighted the need to balance vertical strategies with horizontal reforms that promote private investment, trade integration, and productivity. Green Transition and AI: The intersection of climate action and digital transformation sparked debate about their potential to reshape labor markets. Recommendations included investing in human capital, developing targeted safety nets, and aligning policy tools to support job creation in low-emission sectors. Throughout the sessions, there was a clear consensus that the MENA region's economic resilience depends on institutional reforms, cross-border cooperation, and investment in skills and innovation . Participants also underscored the importance of embedding policy in local realities—an approach that both the IMF and AUC pledged to champion moving forward. In addition to prominent global and regional academics, as well as economists and government officials from across the region, and representatives of international and regional organizations, the conference brought together policymakers, including Rania El Mashat, minister of planning, economic development and international cooperation, Egypt; Youssef Boutros-Ghali, member of the Specialized Council for Economic Development, Egypt; Mahmoud Mohieldin, United Nations special envoy on financing the 2030 Sustainable Development Agenda; and Martin Galstyan, governor of the Central Bank of Armenia. 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It would be responsible for determining the size of the stake to be offered and approving the selection of investment banks, offering advisors, and financial consultants, in coordination with the relevant owning state entity. The draft law also stipulates that, upon a proposal from the unit's executive director and with Cabinet approval, a formal decision must be issued to set mechanisms for managing labor surpluses in state-owned companies. It states that any financial costs associated with these measures must not add further strain on the public budget. As part of implementing the State Ownership Policy, the law introduces restrictions on the state's ability to expand its holdings. It requires prior written approval from the unit before any state entity can establish or invest in a company whose primary activity falls within sectors where the state has opted to keep its investments unchanged. It also prohibits investment in sectors from which the state has committed to a full or partial withdrawal, as outlined in the policy document. *** Not everyone, however, believes the legislation has much chance of success or has been fully thought out. A member of the Cabinet's macroeconomic advisory committee criticized its timing as rushed, 'like reheating leftovers that have been there for a year.' Speaking to Mada Masr, the source said the law appears to offer a superficial display of reform to satisfy the IMF and secure a favorable outcome in the fifth review negotiations. The Cabinet approved the draft law in May 2024, and the parliamentary economic committee began deliberations in a closed session on May 25, without journalists present. The committee approved the draft and referred it to the House's general assembly for a final vote. The IMF previously referenced the draft law as part of Egypt's structural reform commitments. In its third review report, published in August, the fund said the law aims to 'embed key elements of the state-ownership policy into law.' The fourth review report has yet to be published, at the request of the Egyptian government for it to be withheld. The advisory committee source argued that the law's passage was merely 'a formal gesture to show that certain steps — with no value to the project's core — are being taken.' They also pointed to overlap between the proposed unit's role and existing bodies that already, in a way, manage state-owned assets: the Sovereign Fund of Egypt, the Public Enterprise Ministry, and the National Investment Bank. By contrast, Nation's Future Party MP Mahmoud al-Saeedy, a member of the House Economic Committee who took part in the discussions, told Mada Masr he sees no conflict between the new unit and the sovereign fund. 'As part of its multiple roles,' he said, 'the unit may recommend transferring a specific asset to the sovereign fund after reviewing its data.' A second member of the Cabinet's macroeconomic advisory committee raised concerns about the 'ambiguity surrounding the new unit's role and its actual purpose.' They noted that a committee with nearly identical responsibilities — the higher committee on implementing the State Ownership Policy — was already created by administrative decree in December 2022 and also reports directly to the Cabinet. Amr Adly, an assistant professor of political economy at the American University in Cairo, told Mada Masr that such overlap and conflict between the roles of the sovereign fund and the new unit is not unusual. Egypt's bureaucratic system, he noted, has long been characterized by parallel bodies with overlapping mandates. 'Take, for example, the National Center for Planning State Land Use,' he said, 'whose responsibilities both resemble and clash with those of the Industrial Development Authority, the Tourism Development Authority and the New Urban Communities Authority.' Beyond questions of overlapping mandates, the draft law also includes a broad exemption from its own provisions. According to the text, the law does not apply to companies engaged in activities deemed to be of 'national or strategic importance, as defined by a Cabinet decision issued based on a joint proposal from the relevant minister and the competent authority within the owning state entity.' But the draft provides no definition or clear criteria for what qualifies as a national or strategic activity. This vague exemption strips the law of its substance, according to both advisory committee members. The first of the sources said that it further demonstrates that 'the government has no real intention of implementing the law, and only aims to show the IMF that it is fulfilling the required tasks.' Adly echoed the same skepticism, suggesting that the broad exemptions indicate the law is not grounded in any genuine governmental belief in the need to exit the economic sphere or scale back its role in line with the IMF's repeated calls. Instead, he argued, the government is primarily seeking short-term financial returns from select assets to compensate for its inability to grow tax revenues — while maintaining control over assets it is unwilling to relinquish. In contrast, the law's explanatory memorandum defends the exemption, claiming that decisions related to such companies may involve matters of national security or require approval at higher levels of decision-making. The exemptions outlined in the draft law also include 'companies established under international agreements, companies named in special legislation that governs their purpose or ownership structure, and contributions by state-owned insurance firms to the capital of other companies.' Under the law, the new asset inventory and tracking unit is to be led by a full-time executive director with proven expertise in investment, corporate management, and economic project administration. The unit will be supported by a team of experts and specialists in these fields, alongside personnel with financial, technical, and legal qualifications. Staff may be hired on a contractual basis or seconded from existing administrative bodies. The unit's organizational structure will be determined by a decision from the prime minister, based on a proposal by the executive director and after consultation with the Central Agency for Organization and Administration — 'without being bound by the current government rules and regulations.' Saeedy interpreted this provision as intended to bypass several standard government constraints that may not be compatible with attracting top talent to the unit — 'particularly the public sector's maximum wage cap,' he noted. The government's decision to revive this law came as Egypt undergoes its fifth review under the IMF loan agreement, which shows how closely the State Ownership Policy is tied to the terms of the country's arrangement with the fund. The State Ownership Policy document was issued following the government's November 2021 announcement of the findings of a study — prepared, it said, by the Cabinet Information and Decision Support Center — the full text of which was never published. The study was intended to lay out steps to reinforce the state's shift toward supporting the private sector. According to the government at the time, the document emphasized the need to 'identify key sectors in which the state will remain, those it will exit, and others it will gradually withdraw from.' It also recommended 'reforming the public sector by retaining major companies in strategic, high-priority sectors' while divesting from those deemed less critical. The study's conclusions closely mirrored the IMF's second review report, released four months earlier. That report explicitly called for 'a clear state ownership policy,' stating that 'reform of state-owned enterprises should start with developing an ownership policy to enhance accountability and transparency, define the sectors where public intervention is governed by a public service mandate, and implement performance boosting measures. This would enable the state to withdraw from other sectors and allow for private sector-led productivity gains.'
