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Yemen Online
10-02-2025
- Business
- Yemen Online
Yemeni Government Signs Debt Rescheduling Agreement with Arab Monetary Fund
Yemen's Minister of Finance, Salem bin Breik, announced today that the Yemeni government is set to sign a significant debt rescheduling agreement with the Arab Monetary Fund (AMF). This agreement aims to improve Yemen's financial position and support ongoing economic reforms and development projects. During the Arab Fiscal Forum at the World Government Summit, bin Breik highlighted the dual challenges facing Yemen's economy: internal shocks from over a decade of conflict and external pressures such as the COVID-19 pandemic and Red Sea tensions. The suspension of oil exports, which previously accounted for approximately 65% of state revenues, has placed severe financial pressure on the national budget. Since August 2023, Yemen has been implementing a series of financial and monetary reforms, focusing on improving tax efficiency, boosting non-oil revenues, and restructuring government spending. The Yemeni government is working closely with the AMF to implement these reforms, with progress being assessed on a quarterly basis to ensure the achievement of key economic objectives.
Emirates 24/7
10-02-2025
- Business
- Emirates 24/7
Maktoum bin Mohammed: 9th Arab Fiscal Forum Strengthens Financial and Economic Integration Across the Region
The 9th Arab Fiscal Forum concluded on a high note today after a series of engaging and constructive discussions aimed at tackling vital economic issues affecting both Arab and global economies. H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, stated that the Arab Fiscal Forum has become a strategic platform to enhance financial and economic integration among Arab nations. H.H. Sheikh Maktoum stressed that establishing modern financial systems requires a comprehensive approach that focuses on improving spending efficiency, diversifying revenue sources, and utilizing advanced financial technologies such as digitization and artificial intelligence. Such measures are set to enhance transparency, financial sustainability, and the resilience of Arab economies. H.H. Sheikh Maktoum highlighted the importance of developing flexible financial policies that respond to global economic transformations, support stability, and foster sustainable growth. He also noted that regional cooperation plays a fundamental role in developing innovative financial policies capable of addressing future challenges and boosting the investment appeal of Arab economies. In his remarks following the event, H.H. Sheikh Maktoum stated: 'The Forum's themes and outcomes will contribute to shaping future financial visions that support development strategies. We must build on these dialogues during the World Governments Summit 2025, which provides a vital platform to explore the latest global financial and economic trends and strengthen international cooperation in building more sustainable and resilient financial systems.' The Ministry of Finance concluded the ninth edition of the forum, held in collaboration with the Arab Monetary Fund and the International Monetary Fund, on Day 0 leading up to the World Governments Summit 2025, staking place in Dubai from 11 to 13 February. The forum was attended by Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs; Kristalina Georgieva, Managing Director of the International Monetary Fund; and H.E. Dr. Fahd bin Mohammed Al-Turki, Director General and Chairman of the Board of the Arab Monetary Fund. The event also brought together Arab finance ministers, alongside experts, senior officials, and specialists from regional and international financial institutions. Held under the theme 'Fiscal Resilience in an Era of Uncertainty: Balancing Development Needs, Climate Action, and Debt Sustainability,' the forum explored a wide range of economic topics and issues impacting Arab and global economies. Key topics included macroeconomic developments, public finance policies to address debt pressures, enhancing resilience to climate change, and redesigning tax systems to align with major economic transformations. In his opening remarks at the forum, Mohamed bin Hadi Al Hussaini emphasized the need to adopt financial strategies that promote sustainable growth and support economic development in Arab countries. He highlighted that the current phase demands intensified efforts to keep pace with global economic transformations by enhancing spending efficiency and making the most of modern technologies to develop advanced financial and tax systems. Al Hussaini added that the UAE has adopted a comprehensive approach to enhancing financial sustainability by not only developing financial legislation and launching bond and treasury bill programs but also expanding the investment base to achieve economic balance and support future development plans. He also noted that the private sector plays a pivotal role in driving economic growth, stressing the need to create an enabling investment environment that fosters innovation and opens new opportunities for entrepreneurs and national companies. Al Hussaini emphasised that the development of financial systems in Arab countries should align with a broader vision that utilizes digital transformation and artificial intelligence to enhance efficiency and transparency. He also highlighted the importance of regional and international cooperation in designing financial policies, which is essential for achieving sustainable economic stability and enabling countries to adapt to global economic changes. The minister called on stakeholders to make the most of the forum's discussions and dialogues, adding that exchanging experiences and insights would help develop more integrated and flexible financial policies. He also invited the delegations to attend the World Governments Summit 2025, a strategic platform to envision the future of government work and strengthen cooperation across sectors to achieve sustainable development. Kristalina Georgieva, Managing Director of the International Monetary Fund, said: 'The IMF has fostered a strong and productive partnership with countries across the Arab world. Today, this partnership is more crucial than ever as global and regional landscapes undergo significant transformation. Countries in the Arab world can leverage fiscal policy to transform their economies for the future, support growth, and improve the lives of their people.' Dr. Fahd bin Mohammed Al-Turki stated: "The Arab Fiscal Forum provides a key platform for strengthening the resilience of fiscal policies in Arab countries. Under the new strategy of the Arab Monetary Fund, we look forward to being an intellectual partner, offering essential support to economic and financial authorities across the region. Our ultimate goal is to facilitate the adoption of policies that promote stability and foster inclusive, sustainable growth." The forum featured four panel discussions each focusing on a critical economic issue. Chaired by H.E. Dr. Muhammad Sulaiman Al Jasser, Chairman of the Islamic Development Bank, the first session was held under the theme Macroeconomic Developments and Implications for Fiscal Position and was attended by Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund. The session provided an overview of current macroeconomic developments at regional and international levels, addressing the shocks faced by many economies, including conflicts and climate disasters. These challenges have significantly impacted economic growth prospects. The session emphasised the need for policymakers to prioritize enhancing economic growth, increasing economic resilience, and ensuring the sustainability of public finances while maintaining low inflation rates. The second session, chaired by Sheikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy of the Kingdom of Bahrain, included speakers such as Vitor Gaspar, Director of the Fiscal Affairs Department at the International Monetary Fund, and Jeromin Zettelmeyer, Director of the Bruegel Center. Titled 'Options for Fiscal Policy Design in the Face of Mounting Debt Pressures', the gathering discussed the challenges posed by high debt levels, large budget deficits, and rising interest payments. It also reviewed strategies to effectively address these pressures and ensure fiscal stability. The third session was held under the theme 'Fiscal Policy and Climate Resilience.' Chaired by Mohammed Abdullah Al-Jadaan, Minister of Finance of Saudi Arabia, it featured speakers such as Amar Bhattacharya from the Brookings' Center for Sustainable Development and Grace Fu, Minister for Sustainability and the Environment in Singapore. The session addressed the significant economic costs of climate change in the region and stressed the importance of enhancing financial policies to support climate adaptation and ensure economic resilience. As for the fourth session themed 'Tectonic Shifts: Revamping Tax Systems for Large Structural Economic Changes' it was chaired by Mohamed bin Hadi Al Hussaini and included speakers such as Catherine Baer, Deputy Director of the Fiscal Affairs Department at the International Monetary Fund, and Ajay Seth, Secretary, Department of Economic Affairs in the Ministry of Finance of India. The discussion explored avenues for modernizing tax systems in the Arab region to align with major structural economic transformations. It also emphasized the importance of ensuring tax system flexibility and using artificial intelligence to enhance the efficiency and effectiveness of tax administration. The forum concluded with a ministerial roundtable attended by Arab finance ministers. The meeting emphasized the importance of enhancing cooperation among Arab nations to address common challenges and develop sustainable and flexible financial policies capable of promoting economic stability in the region. Follow Emirates 24|7 on Google News.
Zawya
10-02-2025
- Business
- Zawya
Yemen to sign debt rescheduling deal with Arab Monetary Fund: Finance Minister
Salem bin Breik, Yemen's Minister of Finance, said that his country is set to sign an agreement with the Arab Monetary Fund to reschedule its debt, including the repayment of certain loans and instalments. This move is aimed at improving the government's financial position and supporting economic reforms and development projects, he added. Speaking to the Emirates News Agency (WAM) during the Arab Fiscal Forum at the World Government Summit, bin Breik highlighted the dual challenges facing Yemen's economy, including internal shocks caused by more than a decade of conflict, as well as external pressures such as the COVID-19 pandemic and tensions in the Red Sea. He noted that the suspension of oil exports, which previously accounted for approximately 65 percent of state revenues, has placed severe financial pressure on the national budget. Additionally, security instability has negatively impacted various economic sectors, further complicating the business environment in the country. Regarding future plans, bin Breik stated that since August 2023, Yemen has been implementing a series of financial and monetary reforms, focusing on improving tax efficiency, boosting non-oil revenues, and restructuring government spending. He affirmed that the Yemeni government is working closely with the Arab Monetary Fund to implement these reforms, with progress being assessed on a quarterly basis to ensure the achievement of key economic objectives.
The National
10-02-2025
- Business
- The National
IMF chief urges Arab states to boost productivity and ease off ‘sugar rush' of fiscal stimulus
Middle Eastern states must boost workforce productivity and ease off state-led fiscal stimulus, as the region looks to move on from the turmoil caused by the pandemic and wars, the head of the International Monetary Fund (IMF) has said. Kristalina Georgieva said the digitalisation of services and AI could offer a major boost to workforces, using the UAE as an example of an early mover. Decision-makers must move away from state-led developments and allow the private sector to flourish, she said. "Too often, countries use fiscal stimulus to boost short-term domestic demand. While this 'sugar rush' provides temporary growth, it often fuels inflation and financial turbulence," Ms Georgieva said at the Arab Fiscal Forum in Dubai, part of this week's World Governments Summit. "Instead of merely stepping on the gas, we need a stronger engine." The Arab region has the lowest productivity in the world, according to the International Labour Organisation, with many nations' lack of a manufacturing or financial services base a major factor. "Our research in the Arab region shows how to do it: accelerate digitalisation, reduce the state's footprint in the economy, foster trade diversification, and encourage the free flow of capital to dynamic firms," she said. "Some countries are among the most developed in the world in this area. Digital innovation, with AI technologies, is expected to raise the UAE's GDP significantly by 2030. More R&D spending will further enhance productivity." Saudi Arabia's regulatory overhaul and Morocco's New Development Model were also strong examples of moving in the right direction, she said. Investment in battery technology and electric cars is already happening, particularly in the Gulf. Ms Georgieva also spoke of the need to strengthen the tax base, in a part of the world in which governments collect little from their populations. The 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. Ms Georgieva said 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 conflicts. Ms Georgieva said she hopes the Middle East can stabilise and move on from recent wars. "I pray that peace and stability can be delivered in Sudan and Yemen. I hope that the ceasefire in Gaza, along with political changes in Syria and Lebanon, can mark new beginnings," she said, adding that the international community's reconstruction efforts provide a "unique opportunity to rebuild better and lay the foundations for stronger growth". Jihad Azour, the IMF's top official in the Middle East, showed an audience the economic impact of wars in the Middle East, with a slump in tourism numbers in Jordan and Egypt just one of the knock-on effects. "And the situation in Sudan remains dire,' he said. This week, the summit will hear about opportunities to change the world, embracing both new technologies and harnessing talent to create a stronger world. Hundreds of decision-makers, business leaders and technology figures will attend the three-day event at Madinat Dubai. Elon Musk is listed to speak on the final day, probably via a live stream. The prime ministers of Pakistan, Kuwait and Georgia are among the heads of state who will speak. Other notable attendees will be Oracle boss Larry Ellison, in conversation with Sir Tony Blair, and Google chief executive Sundar Pichai. Many sessions relate to the future of artificial intelligence, and there will be some discussion of the future of the Middle East and reconstruction efforts in warzones. The need to modernise the Middle East will also be a hot topic. Dr Fahad Alturki, director general and chairman of the Arab Monetary Fund Board, also spoke on the opening day. 'The resilience of the global economy has been affected in the last five years due to geopolitical crises and developments that had repercussions on growth rates, inflation and unemployment,' he said.
Khaleej Times
10-02-2025
- Business
- Khaleej Times
UAE minister calls for tax system reform to meet rising expenses
Countries across the Arab region need to review and modernise their tax systems to meet rising expenses and evolving economic structures, said Mohamed Al Hussaini, Minister of State for Financial Affairs for the UAE. Speaking at the World Government Summit (WGS) 2025 during the Arab Fiscal Forum, Al Hussaini emphasised the need for "decisive (tax) reform efforts", improved revenue streams, and policies that promote job creation and economic resilience. Al Hussaini stressed that updating tax systems is important to adapting to structural shifts in Arab economies. 'There is also a need to enhance revenue streams to support rising expenditure. Tax systems must avoid and respond to structural transformations in Arab economies," he explained. Stay up to date with the latest news. Follow KT on WhatsApp Channels. He also underscored the importance of 'creating incentives for young people to work in the private sector'. Additionally, he highlighted governance enhancements and incentives for private-sector employment as key drivers of medium-term growth. The minister also urged Arab nations to leverage Artificial Intelligence (AI) and digitalisation to enhance the efficiency and effectiveness of tax frameworks. 'In the UAE, we have laid solid foundations for government operations that support the country's strategic objectives and development trajectory,' he said. Ensuring sustainability Al Hussaini said that the UAE has undertaken a series of reforms aimed at enhancing expenditure and increasing control and listed some challenges governments in the region are facing. 'Among the challenges that have become apparent are the investment in the high cost of subsidy programs and the establishment of social safety networks,' he said. 'Another economic challenge is the rising public debt which drains resources and hinders the development of progress.' He also said that many economies in the region have faced 'a series of shocks, including those stemming from conflict and climate-related disasters,' and so it was 'vital' for policymakers and authorities to concentrate on 'fostering growth and resilience' while ensuring fiscal sustainability and maintaining low emissions. Year of community Al Hussaini linked these economic discussions to the UAE's broader vision for 2025, designated as the Year of Continuity by President Sheikh Mohamed. 'The first line of defence is to determine unity and cohesion of the community, where the connection between individuals promotes a culture of shared responsibility and drives progress,' he said. 'This vision strives for a thriving, united society that aims towards a sustainable management of resources for future generations.' Last month, the UAE leader encouraged "all those who call the UAE home" to contribute towards improving the community and work 'hand in hand' to strengthen social bonds, foster shared responsibility, and 'unlock potential for inclusive and sustainable growth."
