Latest news with #ArabMonetaryFund
Zawya
10-04-2025
- Business
- Zawya
Somalia signs $306.5mln debt relief deal with Arab Monetary Fund
MOGADISHU: Somalia has signed a $306.5 million debt relief deal with the Arab Monetary Fund (AMF), in what the government in Mogadishu called a critical milestone in its economic reform programme. The Horn of Africa country's government is trying to revive its economy after it was battered by decades of civil war. It has also suffered from severe droughts, floods, and a locust infestation in recent years. Last year, it secured the cancellation of 99% of the debt Somalia owed to members of the Paris Club of creditor nations, a vital step in the war-scarred country's efforts to rejoin the international financial system. The deal with Abu Dhabi-based AMF, which fosters financial stability and economic development in Arab member states, involves the restructuring of the debt owed by Somalia to the fund, the AMF said in a statement, without providing more details. Somalia's Finance Minister Bihi Egeh said the agreement was crucial to the country's debt relief efforts and "fundamental to re-engagement with the fund." The signing, which took place in Kuwait on Wednesday, reflected "growing international confidence in Somalia's economic trajectory and reform efforts," Somalia's state news agency SONNA reported. (Reporting by Hereward Holland; Editing by Duncan Miriri and Jamie Freed)
Reuters
10-04-2025
- Business
- Reuters
Somalia signs $306.5 million debt relief deal with Arab Monetary Fund
MOGADISHU, April 10 (Reuters) - Somalia has signed a $306.5 million debt relief deal with the Arab Monetary Fund (AMF), in what the government in Mogadishu called a critical milestone in its economic reform programme. The Horn of Africa country's government is trying to revive its economy after it was battered by decades of civil war. It has also suffered from severe droughts, floods, and a locust infestation in recent years. Last year, it secured the cancellation of 99% of the debt Somalia owed to members of the Paris Club of creditor nations, a vital step in the war-scarred country's efforts to rejoin the international financial system. The deal with Abu Dhabi-based AMF, which fosters financial stability and economic development in Arab member states, involves the restructuring of the debt owed by Somalia to the fund, the AMF said in a statement, without providing more details. Somalia's Finance Minister Bihi Egeh said the agreement was crucial to the country's debt relief efforts and "fundamental to re-engagement with the fund." The signing, which took place in Kuwait on Wednesday, reflected "growing international confidence in Somalia's economic trajectory and reform efforts," Somalia's state news agency SONNA reported.
Hi Dubai
10-04-2025
- Business
- Hi Dubai
Arab Monetary Fund Signs Debt Restructuring Deal with Somalia to Support Economic Reform
In a significant step toward bolstering economic stability in the region, the Arab Monetary Fund (AMF) has signed a Memorandum of Understanding (MoU) with the Federal Republic of Somalia to restructure Somalia's longstanding debt to the Fund. The agreement, signed in Kuwait on the sidelines of the annual meetings of joint Arab financial institutions, aims to ease Somalia's financial burden and reinforce its trajectory of economic reform and sustainable development. Somalia's debt to the AMF dates back over four decades. The restructuring marks a pivotal moment for the country, which has been steadily implementing reform measures to stabilize its economy and strengthen financial governance. Dr. Fahad bin Mohammed Al Turki, Chairman of the AMF Board, underscored the Fund's dedication to its member states, stating that the initiative reflects the AMF's broader strategy to promote economic resilience and long-term growth across the Arab world. 'This agreement reflects our commitment to supporting Arab countries in achieving financial sustainability,' said Dr. Al Turki. 'Through collaboration and tailored support, we aim to create a framework where all member states can thrive.' The MoU is aligned with the AMF's updated strategic direction, which emphasizes flexibility, fiscal sustainability, and closer cooperation with member nations to overcome financial challenges. With this move, the AMF reaffirms its role as a key regional institution fostering economic progress, while Somalia takes another step forward in its recovery and development journey. News Source: Emirates News Agency
Arab News
24-03-2025
- Business
- Arab News
Arab stock markets see mixed performance in Feb. amid global uncertainty, geopolitical tensions
RIYADH: Arab financial markets showed a mixed performance in February, influenced by global economic uncertainties, geopolitical tensions, and fluctuating investor sentiment, according to a new report. The latest monthly bulletin released by the Arab Monetary Fund revealed that the composite index for these exchanges recorded a slight decline of 0.06 percent at the end of February. Arab stock markets did start 2025 on a strong note, buoyed by global gains, with the AMF's January report citing improved investor sentiment and an international market rebound as driving a 0.97 percent increase in the composite index by month-end. This momentum faltered in February, with seven exchanges recording losses, compared to just three the previous month. Despite short-term volatility, the report indicated that investors remain cautiously optimistic about Arab markets. The best-performing markets included Bahrain, which recorded a 4.3 percent increase, followed by Kuwait and Tunisia. Meanwhile, Saudi Arabia and Palestine were among the worst-hit, registering losses of 2.45 percent and 2.37 percent, respectively. Morocco's Casablanca Stock Exchange and Egypt's EGX30 also recorded gains. On the downside, Qatar, Muscat, and Amman experienced declines, along with Iraq. Abu Dhabi's index dipped slightly by 0.11 percent, reflecting mixed sentiment among investors. The report provided a detailed breakdown of market performance, trading volumes, sectoral trends, and the macroeconomic factors influencing Arab financial markets. Market liquidity took a significant hit, with trading volumes plummeting by 26.73 percent across exchanges. The overall market capitalization of Arab stock exchanges contracted by 1.53 percent, shedding approximately $67.56 billion by the end of February. The Kingdom experienced the most significant setback, contributing a 1.66 percent decline to the overall market cap, while Bahrain led gains with a 4.27 percent increase. The decline in trading volume was widespread, with eight exchanges experiencing reduced activity. The value of traded shares also dropped by 8.64 percent in February compared to January. Notably, Bahrain and Muscat experienced significant increases in trading value at 6,888.38 percent and 211.39 percent. Egypt and Saudi Arabia suffered major declines of 29.07 percent and 19.73 percent, with Palestine seeing the most drastic fall at 69.15 percent. Global pressures weigh on performance The underperformance of some Arab exchanges was largely aligned with global trends, as major international indices such as the Dow Jones, Nasdaq, and Japan's Nikkei posted losses. European markets saw mixed results, with the CAC 40 and FTSE 100 showing slight gains, while the MSCI Emerging Markets Index for Latin America and Asia declined. Financial markets worldwide experienced volatility due to a combination of factors, including rising US tariffs, ongoing supply chain disruptions, and increasing trade tensions with China, Canada, and Mexico. According to the report, the escalating geopolitical conflict between Russia and Ukraine further dampened investor sentiment. Concerns about slowing global economic growth and inflationary pressures also contributed to market instability. Sectoral performance and economic policies Sector-wise, financials, consumer services, and telecommunications were among the key drivers of gains in Kuwait, Dubai, and Egypt. The real estate and industrial sectors also performed well, supporting the upward momentum in select exchanges. Conversely, energy and technology stocks struggled, especially in Saudi Arabia and Qatar, as oil price volatility persisted and investor uncertainty increased due to global supply concerns. Oil prices remained under pressure due to increased supply and concerns over demand fluctuations, negatively impacting energy-linked equities in several Arab markets. Meanwhile, commodity markets also saw sharp fluctuations, impacting investor appetite for riskier assets. Monetary policies in Arab economies also saw adjustments, with several central banks lowering interest rates to stimulate economic growth. Saudi Arabia, the UAE, and Qatar implemented minor rate cuts, reflecting a broader effort to maintain economic stability amid global headwinds. Egypt raised its interest rate in an effort to curb inflationary pressures and stabilize its currency. Interest rate shifts were also observed globally, with the US Federal Reserve maintaining a cautious stance, while Japan adjusted its rates upward slightly. China, the eurozone, and India saw minor rate reductions to counter slowing economic momentum. In contrast, Russia increased its interest rate in response to inflationary pressures, while Argentina and Turkiye made substantial cuts, bringing their rates down to 29 percent and 45 percent, respectively. Cautious optimism amid risks Easing inflationary pressures and expectations of a stabilization in oil prices could provide a more favorable environment in the coming months, according to the report. External risks such as US monetary policy shifts, further trade restrictions, and geopolitical instability, however, will continue to influence market movements. Market participants are closely monitoring fiscal policies and government spending initiatives in key Arab economies, as these factors will play a role in determining future investment flows and stock market performance. The trend of central banks adjusting monetary policies to counter inflation and economic slowdown is expected to continue shaping market sentiment. The real estate and financial sectors remain a stronghold for investors, with banks showing resilience amid shifting interest rate policies. The energy sector remains vulnerable to external pressures, however, particularly as oil supply concerns persist, the report stated.
Daily Tribune
11-02-2025
- Business
- Daily Tribune
Finance Minister Joins Regional Fiscal Discussions in Dubai
Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, took part in the 9th Arab Fiscal Forum held in Dubai. The high-profile event convened leading regional and international financial experts to discuss pressing economic and fiscal challenges. The forum was inaugurated by Mohammed bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, in collaboration with the Arab Monetary Fund and the International Monetary Fund. Distinguished attendees included Dr. Fahd bin Mohammed Al Turki, Director-General and Chairman of the Board of the Arab Monetary Fund, and Kristalina Georgieva, Managing Director of the International Monetary Fund. Discussions centered on key economic developments and their impact on public finance, fiscal policy measures to enhance climate resilience, and strategies for formulating more effective future fiscal policies. Participants explored innovative approaches to address emerging financial challenges in the region. The forum also aimed to strengthen the role of the Council of Arab Finance Ministers by fostering the exchange of expertise and best practices. It provided a platform for comprehensive discussions on enhancing economic and financial stability in Arab nations, promoting regional financial cooperation, and aligning fiscal policy priorities with global economic trends. The event was held as part of the broader World Government Summit, underscoring its significance in shaping economic policies in the Arab world.
