TLDR:
• UAE signs two IMF agreements
• Funds support sustainability, poverty reduction
• UAE boosts global financial stability
ABU DHABI (The Thursday Times) — The UAE has signed two agreements with the International Monetary Fund (IMF) to contribute to the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust (RST). These commitments reflect the UAE’s growing role in promoting global financial stability and sustainable development. The agreements were signed during the annual meetings of the IMF and World Bank Group (WBG) in Washington, D.C., where a high-level UAE delegation participated.
Led by Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, the UAE delegation included top officials from the Central Bank of the UAE (CBUAE) and the Ministry of Finance (MoF). Al Hussaini highlighted the UAE’s ongoing dedication to supporting international initiatives aimed at poverty eradication, strengthening developing economies, and advancing sustainable development. The participation of the UAE at these meetings underscores its commitment to fostering global financial resilience.
UAE’s contribution to PRGT and RST
The UAE’s financial support for the IMF’s Poverty Reduction and Growth Trust (PRGT) and Resilience and Sustainability Trust (RST) is part of a broader effort to assist low- and middle-income countries in overcoming significant economic challenges. The PRGT, established by the IMF in 2010, provides concessional lending to low-income countries, helping them address high inflation, food insecurity, and rising debt levels.
Through its contribution to the PRGT, the UAE aims to bolster the capacity of developing nations to navigate economic instability while supporting long-term development goals. This aligns with the first of the United Nations Sustainable Development Goals (SDGs), which prioritises the eradication of poverty.
The Resilience and Sustainability Trust, meanwhile, plays a crucial role in supporting climate resilience and preparedness, particularly in nations vulnerable to the impacts of climate change. With climate risks intensifying across the globe, the UAE’s contribution to the RST comes at a critical time when developing countries require enhanced financial and technical support to mitigate these challenges.
Strengthening global economic partnerships
During the October 2023 meetings of the International Monetary and Financial Committee (IMFC) in Marrakech, the UAE announced a co-financing initiative with the IMF’s PRGT, pledging US$200 million to support the fund. This move is part of the UAE’s ongoing efforts to collaborate with international organisations to ensure financial stability and sustainability in developing economies.
In addition, at the COP28 conference hosted by the UAE, another US$200 million was pledged to the RST, further demonstrating the UAE’s commitment to addressing climate-related challenges. These financial contributions signify the UAE’s active role in shaping the global economic landscape and reflect the country’s strategic vision for supporting both economic and environmental sustainability.
UAE’s growing role in global financial stability
The UAE’s participation in these international agreements highlights its leadership in promoting a collaborative approach to global financial stability. Al Hussaini stressed that financial and economic stability is fundamental to achieving sustainable development, particularly for low- and middle-income countries that face disproportionate challenges in today’s global economy.
The UAE’s contributions to the IMF are also a testament to its belief in the power of international cooperation to tackle the most pressing economic and environmental issues of our time. As a leading financial hub in the Middle East, the UAE continues to solidify its position as a key partner in the international efforts to promote long-term, sustainable growth in the global economy.
The IMF’s PRGT and RST are pivotal instruments in addressing both immediate and long-term challenges faced by developing economies. By supporting these funds, the UAE is not only contributing to global financial stability but also enhancing its reputation as a global leader in driving sustainable development initiatives.
