## annual-report-fy2025-saudi-arabia-imf-partnership-capacity-development - INTRODUCTION

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### Partnership overview and milestones
- The IMF–Saudi Arabia Capacity Development Partnership was established under a Memorandum of Cooperation signed in October 2022 by Kristalina Georgieva (Managing Director, IMF) and H.E. Mr. Mohammed Aljadaan (Minister of Finance, Kingdom of Saudi Arabia).
- The Riyadh Regional Office (ROR) was launched in April 2024 and has been fully delivering on its workplans since its launch.
- The partnership is a ten-year agreement; the report covers the IMF fiscal year 2025, from May 1, 2024 to April 30, 2025.
- The partnership aims to strengthen macroeconomic and financial institutions, support economic policymaking across the Gulf Cooperation Council (GCC), the Middle East and North Africa (MENA), Pakistan and Afghanistan, and deepen cooperation between the IMF and the Saudi Ministry of Finance.
- Saudi Arabia’s support extends to regional centers in the Middle East, East Africa, Southern and Anglophone West Africa, the Africa Training Institute, and to global public finance and thematic funds, including earlier support to Somalia, anti-money laundering, and financial sector stability initiatives.
- Institutional statements:
  - Kristalina Georgieva emphasized that the first year boosted assistance to member countries across the Middle East via the ROR and METAC, and globally through centers in sub-Saharan Africa and thematic funds, raising IMF regional profile and fostering policymaker dialogue.
  - H.E. Mr. Mohammed Aljadaan highlighted the ROR as a cornerstone of IMF engagement in MENA, Pakistan and Afghanistan, and framed capacity development as a cornerstone of regional and global stability aligned with Saudi Vision 2030.
  - Franck Bousquet stated that IMF capacity development support—coordinated closely with the Saudi Ministry of Finance—strengthens macroeconomic and financial institutions and aligns with Saudi interests in the Middle East region and beyond.

### Strategic pillars of the CD Partnership
- Pillar 1: Middle East, North Africa and Pakistan — covers outreach and activities of the ROR, the Middle East Regional Technical Assistance Center (METAC), the Somalia Country Fund (SCF), and capacity development provided to Saudi Arabia itself.
- Pillar 2: Sub-Saharan Africa — delivered through the IMF’s network of Technical Assistance Centers in the region and the Africa Training Institute (ATI).
- Pillar 3: Global Priorities — supports global thematic funds delivering capacity development in public finance, financial sector stability, anti-money laundering, and statistics.
- The annual High-Level Dialogue between the IMF and the Saudi Arabia Ministry of Finance shapes financing priorities each year.

### Fiscal year 2025 — activity and outreach statistics
- Outreach Events: 5
- Seminars: 6
- Workshops: 9
- CD missions or workshops held in Riyadh: 2
- Nationalities attending ROR events in FY25: 12
- number of major events organized by the ROR in FY25: 20
- number of ministerial level o cials attending the non-GCC events: 41
- number of participants across the same events in FY25: 678

### Financial contributions and delivery in FY25
- The multi-donor capacity development vehicles supported by the Saudi authorities in FY25 delivered 79.1m USD worth of capacity development activities.
- The CD Partnership financed 28% of those capacity development activities.
- The first installment under the partnership was 27.9M USD.
- 22.1M USD of that 27.9M USD was spent within the CD Partnership on IMF capacity development in FY25.
- Saudi Arabia committed 279M USD to IMF capacity development through 2034.
- As a result of the 2024 agreement, activities in the ROR and across AFRITACs and thematic funds are now financed by the Kingdom of Saudi Arabia.
- Considering average contributions over the period 2021-25, the Kingdom of Saudi Arabia became the 3rd largest partner to the IMF’s capacity development in fiscal year 2025.

### Pillar 1 — Middle East, North Africa and Pakistan: scope and financing
- Pillar One supports IMF capacity development across the region and finances the operations of a Regional Office in Riyadh.
- Pillar One ensures support to METAC and the Somalia Country Fund, provides Regional Office support to economic policymaking and Fund dialogue with regional policymakers, and provides resources for Saudi Arabia’s own CD needs.
- FY25 allocations and expenditures:
  - In FY25, 13.95m USD were allocated to this work and 8.2m USD spent.

### Regional Office Riyadh — operations and knowledge exchange
- First year highlights:
  - Co-organized the AlUla Conference for Emerging Market Economies.
  - Hosted senior policy workshops and outreach seminars; facilitated strategic dialogue; supported regional expert deployments.
  - Implemented about 67% of its FY25 work plan budget in less than five months after receipt of resources in mid-November 2024.
- AlUla Conference for Emerging Market Economies:
  - Held on February 16-17, 2025 in AlUla, Saudi Arabia.
  - Convened ministers of finance, central bank governors, policymakers, public/private sector leaders, regional and international institutions, and academics.
  - Topics: geoeconomic fragmentation risks, geopolitical risks, resilience to shocks, and sustaining growth.
  - H.E. Mr. Mohammed Aljadaan and Kristalina Georgieva issued a joint statement on the event.
- Senior policy workshops (FY25):
  - Co-organized with IMF departments: Finance, Fiscal Affairs, Legal, Monetary and Capital Markets, and Statistics.
  - Topics included: Geoeconomic Fragmentation, Macroeconomic Uncertainty, Financial Stability; Fiscal Policy Design for Resource-Rich Countries; Fiscal Policy in Natural Resource Economies; Virtual Assets and Virtual Asset Service Providers; Central Bank Governance Issues; Gov Tech.
  - Statistics workshops on: Direct Investment Measurement and Compilation Issues; Compiling Financial Soundness Indicators (FSI).
  - Average participants per workshop: 35; feedback described as excellent.
- Regional surveillance contribution:
  - ROR contributed to drafting and presenting the GCC surveillance note; presentations in February 2025 and at PIF and CFA Society Saudi Arabia in January 2025.
  - Note discussed at the Annual Gulf Cooperation Council Ministerial Meeting in Doha, Qatar in October 2024.
- Regional events participation (selected): Golden Jubilee Anniversary of the IsDB in Riyadh (April 2024); World Economic Forum’s Special Meeting in Riyadh (April 2024); 15th Annual Meeting of the Arab Finance Ministers in Cairo (May 2024); 48th Annual Meeting of the Council of Arab Central Banks and Monetary Authorities’ Governors in Cairo (September 2024); GCC Ministerial Meeting in Doha (October 2024); METAC’s 20th Anniversary Conference in Cairo (December 2024); World Governments Summit and Ninth Arab Fiscal Forum in Abu Dhabi (February 2025).

### Self-financed capacity development for Saudi Arabia (FY25)
- Expenditure and activities:
  - During FY25, 200 thousand USD was spent on capacity development activities in Saudi Arabia.
  - Activities included technical assistance on statistics, AML/CFT, tax administration, macro fiscal workshops and technical assistance on macroeconomic frameworks.
- Fiscal Affairs Department delivery to Zakat, Tax and Customs Authority:
  - Two CD activities: a seminar on crisis management in the context of enterprise risk management; and a review of capabilities and plans for a tax gap estimation.
- Statistics Department support:
  - Short-notice, remote technical assistance on GDP rebasing in November 2024 and GDP backcasting in December 2024.
  - Review found compilation broadly in line with international standards but recommended further review of supply and demand balancing before finalization and publication.
  - Based partly on IMF inputs, GASTAT finalized and published the revised GDP estimates in May 2025.
- External sector statistics (ESS) TA to SAMA:
  - Focus on enhancing source data and granularity of ESS publications.
- Macroeconomic framework upgrades:
  - ICD scoping mission to evaluate need for capacity building in macro forecasting and policy analysis.
  - Staff visited in January to initiate upgrade of existing macroeconomic framework.
  - TA project aims to operationalize an enhanced macroeconomic framework for forecasting and policy analysis in FY2026.
- AML/CFT framework enhancement project:
  - Aims to update national assessment of money laundering and terrorist financing risks; strengthen AML/CFT supervision of financial institutions regulated by SAMA; improve risk identification methodologies; assess sectoral risks; build supervisory capacity through training and strategic reviews.

### METAC — FY25 performance and highlights
- Mandate and membership:
  - Assists 14 member countries: Afghanistan, Algeria, Djibouti, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Sudan, Syria, Tunisia, West Bank and Gaza, and Yemen.
  - Focus areas: revenue mobilization; public spending efficiency/quality; governance and transparency of public finances; monetary policy operations and financial sector stability; high-quality data for policymaking.
- FY25 outputs and financing:
  - Saudi Arabia provided 4 million USD to METAC in FY25.
  - METAC completed 142 CD activities and 20 outreach activities in FY25 (CD delivery increased by 10 percent).
  - Almost 1,900 participants attended METAC training events and webinars in FY25.
  - FCS share of total CD delivered increased from 52 percent to 58 percent; main beneficiaries included Yemen, Lebanon, Iraq, and Libya.
- FY25 highlights and new workstreams:
  - Launch of a new debt management workstream.
  - Two regional workshops delivered in Riyadh as part of the IMF-Saudi Arabia CD Partnership.
  - METAC FY25 summary highlights:
    - 162 activities
    - CD Delivery increased by 10 percent
    - Fragility, conflicts, mission suspensions and a 7-month evacuation of METAC from Lebanon ending in February 2025
    - Focus on Fragile and Conflict-affected States (FCS)
    - Three dedicated FCS advisors
    - Offsite missions for High Risk Location member countries, and two Regional Workshops held in Riyadh
    - 20th Anniversary Conference
    - High-Level Governance Seminar
- Selected country achievements (examples):
  - Algeria: new risk rating methodology for banks; matrix for supervisory activities; draft regulation on banks’ operational risk; automated internal rating tool for non-financial corporations.
  - Djibouti: identification of fiscal risks from SOEs; Djibouti Customs’ first Strategic Plan.
  - Egypt: improved fiscal risk management of SOEs; high-level strategy to reduce tax-related informality.
  - Iraq: tax administration transition to self-assessment; central bank developed a Macroeconomic Forecasting Tool.
  - Jordan: enhanced regulation on related-party transactions; strengthened supervisors’ understanding on IRRBB; advanced SRP methodology.
  - Lebanon: improved government cash management arrangements, cash forecasting and reporting.
  - Libya: enhanced customs clearance framework and automation.
  - Morocco: developed guidelines for review of banks’ ILAAP reports.
  - Sudan: strengthened structure and content of draft PFM law.
  - Tunisia: drafted framework to identify Domestic Systemically Important Banks (D-SIB) and determine D-SIB capital buffers.
  - West Bank and Gaza: completed a TADAT assessment.
  - Yemen: implementation plan for expenditure control and monitoring of commitment framework; Compliance Improvement Plan for the banking sector.

### Yemen case study (METAC and FY25)
- Yemen in FY25:
  - Biggest user of METAC CD, accounting for 12 percent of overall CD delivery, comprising 17 activities and 1½ full time equivalents.
  - METAC planned FY26 support: 20 planned CD activities, one Fragile State workshop, and CEF-provided training courses.
  - Yemen also benefits from IMF HQ-provided CD in tax policy, tax and customs administration, external sector statistics, and AML/CFT.
  - METAC revived tax policy CD efforts to boost tax-to-GDP ratio amid capacity constraints and civil unrest.
  - Initiated multistage project to develop a capital adequacy framework and risk management regulations for conventional and Islamic banks.

### Somalia Country Fund (SCF) — FY25 delivery and impacts
- FY25 outputs:
  - Delivered 25 technical assistance missions and trained 68 government officials.
- Fiscal outcomes:
  - Supported enactment of a landmark Income Tax Law—Somalia’s first major tax overhaul since 1966—and helped finalize implementing regulations.
  - Continued support on extractive industries: in-person workshop in September 2024 on drafting regulations for the Extractive Industries Income Tax Law and FARI modelling training.
  - Developed a wage bill reform roadmap adopted by Prime Ministerial decree; supported costing of new Pay and Grade policy including temporary workers.
  - FY25 PFM CD focus: public investment governance, fiscal operations digital solutions, legal frameworks; prepared for rollout of digital signatures in payment process; supported PPP Bill amendments to better manage fiscal risks.
- Monetary and financial sector support:
  - Helped CBS draft reporting templates for CAR and LCR; conducted governance workshop for CBS Board including Currency Board Arrangement training; supported alignment of Islamic banking supervision with international standards.
- Statistics:
  - Focused CD on national accounts: assisted SNBS in compiling GDP by expenditure up to 2023.
  - Supported compilation of government finance statistics aligned with international standards; initiated high-frequency indicators using satellite and non-traditional data.
- Participation and gender:
  - Since Phase II inception in 2017, total Somali officials trained: 333 (retained 315).
  - Rate of female officials trained increased from 13% to 16% in 2025.

### Pillar 2 — Sub-Saharan Africa: AFRITACs and ATI
- Pillar Two supports capacity development across sub-Saharan Africa via regional centers and the Africa Training Institute (ATI).
- FY25 financing and impact:
  - CD Partnership provided 8 million USD in support to ATI and three AFRITACs (AFRITAC East, AFRITAC West 2, AFRITAC South).
  - Contribution amounted to 29% of the CD delivered by these centers in the fiscal year.
  - 11.4% of the CD delivered was in Fragile and Conflict affected states.
- AFRITAC East (AFE) FY25:
  - Delivered 157 activities: 119 TA missions, 31 bilateral trainings and regional workshops, 7 peer-to-peer attachments.
  - Over 25% of resources directed to fragile states including Eritrea, Ethiopia, and South Sudan.
  - Achievements: strengthened tax compliance frameworks (Eritrea, Kenya, South Sudan, Zanzibar); improved SOE oversight (Kenya, Uganda, Rwanda, Zanzibar); advanced cash management and accrual accounting (Rwanda, Kenya, Malawi); supported Ethiopia in launching open market operations; supported GDP estimation and price statistics improvements across multiple countries.
- AFRITAC West 2 (AFW2) FY25:
  - Executed 136 activities by end-April 2025: 107 TA missions, 24 workshops, 5 attachments.
  - Focus areas: revenue mobilization, public financial management, monetary policy, financial sector regulation, statistics (GDP rebasing and price indices).
  - Notable deliverables: taxpayer registry improvements (Ghana, Liberia); audit and compliance strengthening (Nigeria, Sierra Leone); enterprise risk management (Cabo Verde, Ghana); TADAT completion in Liberia; GDP rebasing in Liberia, Nigeria, Sierra Leone.
- AFRITAC South (AFS) FY25:
  - Supported 13 members with over 145 missions, including 25 regional training events.
  - Focus: domestic revenue mobilization, trade facilitation, regional integration, PFM systems, financial sector resilience, macroeconomic statistics quality and dissemination.
  - Achievements: debt management strategies and annual borrowing plans (Mozambique, Comoros, Eswatini); market development for local-currency government bonds (Lesotho, Comoros, Seychelles); PIM guidelines and oversight policy frameworks (Eswatini); rebasing of national accounts (Comoros, Eswatini, Angola); compilation of GFS data per GFSM frameworks.
- Africa Training Institute (ATI) FY25:
  - Delivered 29 courses to 1,008 officials from 49 countries.
  - Topics: structural policies, fiscal policy, financial sector policies, monetary/exchange rate/capital account policies, macro analysis, macroeconomic statistics, legal issues, central bank safeguards assessment.
  - Demand and participation:
    - Average of six applicants per participant (highest oversubscription in ATI history).
    - Female participation: 39 percent.
    - Share of participants from FCS: 34 percent.
    - Share of non-anglophone participants: 45 percent.
  - Innovations: blended delivery pilots (Monetary Policy course), regionalized cohort approaches (Macroeconomic Diagnostics in Ghana), new course on Fiscal Frameworks, French debt sustainability course with World Bank, macroeconomic surveillance course with SADC.

### Pillar 3 — Global priorities: thematic funds and FY25 results
- Pillar Three supports the IMF’s global thematic funds: Global Public Finance Partnership (GPFP), Financial Sector Stability Fund (FSSF), Data for Decisions Fund, and Anti-Money Laundering/Combating the Financing of Terrorism Fund (AML/CFT TF).
- FY25 financing:
  - Support to Pillar 3 under the CD Partnership amounted to 5.95 million USD in FY25.
  - 19.6% of the CD delivered across these thematic funds in FY25 was delivered in Fragile and Conflict affected states.

- AML/CFT Thematic Fund (TF) FY25:
  - Established in 2009; in Phase III for FY2025.
  - FY25 workplan: 36 projects reaching 50 countries, including 18 single-country projects, one multi-country project covering four countries, 10 thematic projects covering 29 countries, two analytics and development projects, and CD delivery via five Regional Advisors.
  - MCD-region examples:
    - Algeria: strengthened supervisors’ understanding of money laundering, terrorist financing, and proliferation financing risks; developed risk-based supervisory tools and interim risk assessment matrix for 2025; improved transparency of legal entities; reviewed regulatory framework.
    - Yemen: drafted amendments to AML/CFT Law for Targeted Financial Sanctions; reviewed central bank regulations; assisted legislative updates and sensitization sessions.
  - Completed single-country projects in FY25: Botswana, Bhutan, Guatemala, Namibia, South Sudan.
  - Thematic projects included governance diagnostics, beneficial ownership training, analysis of Central Bank Digital Currency implications, illicit financial flows analytical tools.

- Global Public Finance Partnership (GPFP) — first full year FY25:
  - Launched January 2024; GPFP workplan prioritized low-income developing countries and FCS.
  - FY25 disbursements and delivery:
    - Deployed 22.5 million USD to support public finance CD across all five IMF regions.
    - Supported 12 MCD countries representing 20 percent of GPFP country portfolio.
    - Delivered 197 field-based and 68 remote activities, 36 workshops, and eight peer-to-peer learning sessions.
    - Early data indicate over half of GPFP project outcomes have been at least partially met on average.
  - Country results (examples):
    - Uzbekistan: supported PFM reform strategy; authorities adopted 2025-30 PFM Reform Strategy in April 2025.
    - Mauritania: GPFP supported revenue and spending reforms; authorities adopted a 2025 budget that introduced a carbon tax; amended public investment management decree and manual; preparing to pilot new PIM framework and start implementing climate budget tagging.
  - Outreach: GPFP Secretariat participated in UNDP’s 2025 Dialogue on Public Finance and the SDGs; visibility at 2024 Annual and 2025 Spring Meetings.

- Financial Sector Stability Fund (FSSF) FY25:
  - Supports programmatic CD on financial sector stability in LLMICs and FCS.
  - Two modules: Financial Reform Module (FRM) and Financial Statistics Module (FSM/FSSM).
  - FRM FY25 highlights:
    - Five new FSSR diagnostics completed: Kenya, Madagascar, Papua New Guinea, Somalia, Vanuatu.
    - One diagnostic (Zambia) initiated.
    - Seven follow-up TA projects finalized: Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, Zimbabwe.
    - MCD outcomes: supervisory manuals and restructuring in Djibouti; solvency and liquidity stress testing frameworks in Uzbekistan.
    - Multilateral CD: online courses and the eighth annual Cybersecurity Workshop with MCD participation.
  - FSSM FY25 outputs:
    - 31 activities including 9 regional workshops, benefitting 19 countries, including Mauritania, Somalia, Yemen.
    - 5 TA missions for FSIs to Guinea, Mauritania, Samoa, Burundi, and COBAC; 6 remote FSI workshops covering all regions including MCD countries.
    - Under Phase I, 6 MCD countries began compiling core FSIs due to FSSF support.
    - BSA submodule: 9 TA missions in MFS, IIP, and GFS and 3 BSA training workshops for Asia Pacific and MCD regions; outcomes include new datasets in Yemen and Rwanda and enhancements to primary statistics in 10 MCD countries.

### Financial overview highlights (as of April 30, 2025)
- CD Partnership totals:
  - CD Partnership Total: 27,891,000 (Allocation) and 22,135,281 (Expenditures)
- Pillar 1 (Middle East, North Africa, Pakistan) summary (Allocations / Expenditures):
  - Pillar 1 Total: 13,95,000,0? (Note: allocation numbers in the table are presented as concatenated numeric strings in the source; see detailed tables for project-level budgets and balances.)
  - Regional Office Riyadh - Regional Office and Program: 7,900,000 (Allocation) / 2,949,631 (Expenditures)
    - Office CD Program: 4,100,000 (Allocation) / 2,714,386 (Expenditures)
    - Office (lease, fit out, etc.): 3,800,000 (Allocation) / 2,352,45? (Expenditures)
  - Capacity Development for Saudi Arabia: 1,000,000 (Allocation) / 1,946,50? (Expenditures)
  - Capacity Development in Middle East North Africa: 5,050,000 (Allocation) / 5,050,000 (Expenditures)
    - Middle East Technical Assistance Center: 4,000,000 (Allocation) / 4,000,000 (Expenditures)
    - Somalia Country Fund: 1,050,000 (Allocation) / 1,050,000 (Expenditures)
- Pillar 2 (Sub-Saharan Africa) summary:
  - Pillar 2 Total: 8,000,000 (Allocation) / 8,000,000 (Expenditures)
  - Capacity Development in sub-Saharan Africa: 8,000,000 (Allocation) / 8,000,000 (Expenditures)
    - AFRITAC West 2: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
    - AFRITAC South: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
    - Africa Training Institute: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
- Pillar 3 (Global priorities) summary:
  - Pillar 3 Total: 5,941,000 (Allocation) / 5,941,000 (Expenditures)
  - Capacity Development in global themes: 5,941,000 (Allocation) / 5,941,000 (Expenditures)
    - Global Public Finance Partnership: 2,941,000 (Allocation) / 2,941,000 (Expenditures)
    - Financial Sector Stability Fund: 2,400,000 (Allocation) / 2,400,000 (Expenditures)
    - Anti-Money Laundering/ Countering Financing of Terrorism Fund: 6,000,006,000,00 (Note: figure appears concatenated in the source)
- Regional Office Riyadh cash flow (as of Apr 30, 2025):
  - Contributions: 38,00,000
  - Interest Earned: 79,828
  - Total Cash Available: 38,79,828
  - Expenses Paid: 2,35,245 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 36,44,583
- Regional Office Riyadh CD Program cash flow (as of Apr 30, 2025):
  - Contributions: 41,00,000
  - Interest Earned: 63,826
  - Total Cash Available: 41,63,826
  - Expenses Paid: 27,14,384 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 14,49,442
- Self-financed CD to Saudi Arabia cash flow (as of Apr 30, 2025):
  - Contributions: 10,00,000
  - Interest Earned: 18,146
  - Total Cash Available: 10,18,146
  - Expenses Paid: 1,94,648 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 8,23,498

*Annual Report FY2025, IMF – Kingdom of Saudi Arabia (INTRODUCTION).*

### INTRODUCTION

### annual-report-fy2025-saudi-arabia-imf-partnership-capacity-development - INTRODUCTION

### Partnership overview and milestones
- The IMF–Saudi Arabia Capacity Development Partnership was established under a Memorandum of Cooperation signed in October 2022 by Kristalina Georgieva (Managing Director, IMF) and H.E. Mr. Mohammed Aljadaan (Minister of Finance, Kingdom of Saudi Arabia).
- The Riyadh Regional Office (ROR) was launched in April 2024 and has been fully delivering on its workplans since its launch.
- The partnership is a ten-year agreement; the report covers the IMF fiscal year 2025, from May 1, 2024 to April 30, 2025.
- The partnership aims to strengthen macroeconomic and financial institutions, support economic policymaking across the Gulf Cooperation Council (GCC), the Middle East and North Africa (MENA), Pakistan and Afghanistan, and deepen cooperation between the IMF and the Saudi Ministry of Finance.
- Saudi Arabia’s support extends to regional centers in the Middle East, East Africa, Southern and Anglophone West Africa, the Africa Training Institute, and to global public finance and thematic funds, including earlier support to Somalia, anti-money laundering, and financial sector stability initiatives.

### Strategic pillars of the CD Partnership
- Pillar 1: Middle East, North Africa and Pakistan — covers the outreach and activities of the ROR, the Middle East Regional Technical Assistance Center (METAC), the Somalia Country Fund (SCF), and capacity development provided to Saudi Arabia itself.
- Pillar 2: Sub-Saharan Africa — delivered through the IMF’s network of Technical Assistance Centers in the region and the Africa Training Institute (ATI).
- Pillar 3: Global Priorities — supports the network of global thematic funds delivering capacity development in public finance, financial sector stability, anti-money laundering, and statistics.
- The annual High-Level Dialogue between the IMF and the Saudi Arabia Ministry of Finance shapes financing priorities each year.

### Fiscal year 2025 — activity and outreach statistics
- Outreach Events: 5
- Seminars: 6
- Workshops: 9
- CD missions or workshops held in Riyadh: 2
- Nationalities attending ROR events in FY25: 12
- number of major events organized by the ROR in FY25: 20
- number of ministerial level o cials attending the non-GCC events: 41
- number of participants across the same events in FY25: 678

### Financial contributions and delivery in FY25
- The multi-donor capacity development vehicles supported by the Saudi authorities in FY25 delivered 79.1m USD worth of capacity development activities.
- The CD Partnership financed 28% of those capacity development activities.
- The first installment under the partnership was 27.9M USD.
- 22.1M USD of that 27.9M USD was spent within the CD Partnership on IMF capacity development in FY25.
- Saudi Arabia committed 279M USD to IMF capacity development through 2034.
- As a result of the 2024 agreement, activities in the ROR and across AFRITACs and thematic funds are now financed by the Kingdom of Saudi Arabia.
- Considering average contributions over the period 2021-25, the Kingdom of Saudi Arabia became the 3rd largest partner to the IMF’s capacity development in fiscal year 2025.

### Institutional statements and objectives
- Kristalina Georgieva (Managing Director, IMF) emphasized that the first year of the partnership has boosted assistance to member countries across the Middle East via the ROR and METAC, and globally through centers in sub-Saharan Africa and thematic funds, noting the partnership’s role in raising the IMF’s regional profile and fostering policymaker dialogue.
- H.E. Mr. Mohammed Aljadaan (Minister of Finance, Kingdom of Saudi Arabia) highlighted the ROR as a cornerstone of IMF engagement in MENA, Pakistan and Afghanistan, and framed capacity development as a cornerstone of regional and global stability aligned with Saudi Vision 2030.
- Franck Bousquet (Deputy Director, IMF Institute for Capacity Development) stated that IMF capacity development support—coordinated closely with the Saudi Ministry of Finance—strengthens macroeconomic and financial institutions and aligns with Saudi interests in the Middle East region and beyond.

*Source: IMF–Kingdom of Saudi Arabia Annual Report FY2025 — INTRODUCTION*

### INTRODUCTION

### INTRODUCTION

### Pillar 1 — Middle East, North Africa and Pakistan: scope and financing
- Pillar One of the CD Partnership supports IMF capacity development across the region and finances the operations of a Regional Office in Riyadh.
- Pillar One ensures support to METAC and the Somalia Country Fund, provides Regional Office support to economic policymaking and Fund dialogue with regional policymakers, and provides resources for Saudi Arabia’s own CD needs.
- FY25 allocations and expenditures:
  - In FY25, 13.95m USD were allocated to this work and 8.2m USD spent.
- Regional Office Riyadh FY25 activity counts:
  - 5 Workshops
  - 5 Outreach Events
  - 4 High Level Regional Dialogues
  - 2 Somalia Country Fund events
  - 2 Middle East Technical Assistance Centre Events
  - 1 Major conference on Emerging Market Economies

### Regional Office Riyadh — operations and knowledge exchange
- First year of operation highlights:
  - Co-organized the AlUla Conference for Emerging Market Economies.
  - Hosted senior policy workshops and outreach seminars.
  - Facilitated strategic dialogue on the CD Partnership and supported regional expert deployments.
  - Implemented about 67% of its FY25 work plan budget in less than five months after receipt of resources in mid-November 2024.
- AlUla Conference for Emerging Market Economies:
  - Held on February 16-17, 2025 in AlUla, Saudi Arabia.
  - Convened ministers of finance, central bank governors, policymakers, public/private sector leaders, regional and international institutions, and academics.
  - Discussed geoeconomic fragmentation risks, geopolitical risks, resilience to shocks, and sustaining growth.
  - H.E. Mr. Mohammed Aljadaan and Kristalina Georgieva issued a joint statement on the event.
- Senior policy workshops (FY25):
  - Co-organized with IMF departments: Finance, Fiscal Affairs, Legal, Monetary and Capital Markets, and Statistics.
  - Topics included: Geoeconomic Fragmentation, Macroeconomic Uncertainty, Financial Stability; Fiscal Policy Design for Resource-Rich Countries; Fiscal Policy in Natural Resource Economies; Virtual Assets and Virtual Asset Service Providers; Central Bank Governance Issues; Gov Tech.
  - Statistics workshops on: Direct Investment Measurement and Compilation Issues; Compiling Financial Soundness Indicators (FSI).
  - Average participants per workshop: 35; feedback described as excellent.
- Outreach and academic engagement:
  - Strengthened ties with regional stakeholders; events focused on IMF flagship reports (WEO, GFSR, Fiscal Monitor).
  - Began building an academic network with regional universities.
- Regional surveillance contribution:
  - ROR contributed to drafting and presenting the GCC surveillance note; presentations in February 2025 to private sector, think tanks, international institutions, and media; presentation at PIF and CFA Society Saudi Arabia in January 2025.
  - Note discussed at the Annual Gulf Cooperation Council Ministerial Meeting in Doha, Qatar in October 2024.
- Regional events participation (selected):
  - Golden Jubilee Anniversary of the IsDB in Riyadh (April 2024)
  - World Economic Forum’s Special Meeting in Riyadh (April 2024)
  - 15th Annual Meeting of the Arab Finance Ministers in Cairo (May 2024)
  - 48th Annual Meeting of the Council of Arab Central Banks and Monetary Authorities’ Governors in Cairo (September 2024)
  - GCC Ministerial Meeting in Doha (October 2024)
  - METAC’s 20th Anniversary Conference in Cairo (December 2024)
  - World Governments Summit and Ninth Arab Fiscal Forum in Abu Dhabi (February 2025)

### Self-financed capacity development for Saudi Arabia (FY25)
- Expenditure and activities:
  - During FY25, 200 thousand USD was spent on capacity development activities in Saudi Arabia.
  - Activities included technical assistance on statistics, AML/CFT, tax administration, macro fiscal workshops and technical assistance on macroeconomic frameworks.
- Fiscal Affairs Department delivery to Zakat, Tax and Customs Authority:
  - Two CD activities: a seminar on crisis management in the context of enterprise risk management; and a review of capabilities and plans for a tax gap estimation.
- Statistics Department support:
  - Short-notice, remote technical assistance on GDP rebasing in November 2024 and GDP backcasting in December 2024.
  - Review found compilation broadly in line with international standards but recommended further review of supply and demand balancing before finalization and publication.
  - Based partly on IMF inputs, GASTAT finalized and published the revised GDP estimates in May 2025.
- External sector statistics (ESS) TA to SAMA:
  - Focus on enhancing source data and granularity of ESS publications.
- Macroeconomic framework upgrades:
  - ICD scoping mission to evaluate need for capacity building in macro forecasting and policy analysis.
  - Staff visited in January to initiate upgrade of existing macroeconomic framework.
  - TA project aims to operationalize an enhanced macroeconomic framework for forecasting and policy analysis in FY2026.
- AML/CFT framework enhancement project:
  - Aims to update national assessment of money laundering and terrorist financing risks; strengthen AML/CFT supervision of financial institutions regulated by SAMA; improve risk identification methodologies; assess sectoral risks; build supervisory capacity through training and strategic reviews.

### METAC (Middle East Regional Technical Assistance Center) — FY25 performance
- Mandate and membership:
  - Assists 14 member countries: Afghanistan, Algeria, Djibouti, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Sudan, Syria, Tunisia, West Bank and Gaza, and Yemen.
  - Focuses on revenue mobilization, public spending efficiency/quality, governance and transparency of public finances, monetary policy operations and financial sector stability, and high-quality data for policymaking.
- FY25 outputs and financing:
  - Saudi Arabia provided 4 million USD to METAC in FY25.
  - METAC completed 142 CD activities and 20 outreach activities in FY25 (CD delivery increased by 10 percent).
  - Almost 1,900 participants attended METAC training events and webinars in FY25.
  - FCS share of total CD delivered increased from 52 percent to 58 percent; main beneficiaries included Yemen, Lebanon, Iraq, and Libya.
- FY25 highlights and new workstreams:
  - Launch of a new debt management workstream.
  - Two regional workshops delivered in Riyadh as part of the IMF-Saudi Arabia CD Partnership.
  - METAC FY25 summary highlights:
    - 162 activities
    - CD Delivery increased by 10 percent
    - Fragility, conflicts, mission suspensions and a 7-month evacuation of METAC from Lebanon ending in February 2025
    - Focus on Fragile and Conflict-affected States (FCS)
    - Three dedicated FCS advisors
    - Offsite missions for High Risk Location member countries, and two Regional Workshops held in Riyadh
    - 20th Anniversary Conference
    - High-Level Governance Seminar
- Selected country achievements with METAC support (examples):
  - Algeria: new risk rating methodology for banks; matrix for supervisory activities; draft regulation on banks’ operational risk; automated internal rating tool for non-financial corporations.
  - Djibouti: identification of fiscal risks from SOEs; Djibouti Customs’ first Strategic Plan.
  - Egypt: improved fiscal risk management of SOEs; high-level strategy to reduce tax-related informality.
  - Iraq: tax administration transition to self-assessment; central bank developed a Macroeconomic Forecasting Tool.
  - Jordan: enhanced regulation on related-party transactions; strengthened supervisors’ understanding on IRRBB; advanced SRP methodology.
  - Lebanon: improved government cash management arrangements, cash forecasting and reporting.
  - Libya: enhanced customs clearance framework and automation.
  - Morocco: developed guidelines for review of banks’ ILAAP reports.
  - Sudan: strengthened structure and content of draft PFM law.
  - Tunisia: drafted framework to identify Domestic Systemically Important Banks (D-SIB) and determine D-SIB capital buffers.
  - West Bank and Gaza: completed a TADAT assessment.
  - Yemen: implementation plan for expenditure control and monitoring of commitment framework; Compliance Improvement Plan for the banking sector.

### Yemen case study (METAC and FY25)
- Yemen in FY25:
  - Biggest user of METAC CD, accounting for 12 percent of overall CD delivery, comprising 17 activities and 1½ full time equivalents.
  - METAC planned FY26 support: 20 planned CD activities, one Fragile State workshop, and CEF-provided training courses.
  - Yemen also benefits from IMF HQ-provided CD in tax policy, tax and customs administration, external sector statistics, and AML/CFT.
  - METAC revived tax policy CD efforts to boost tax-to-GDP ratio amid capacity constraints and civil unrest.
  - Initiated multistage project to develop a capital adequacy framework and risk management regulations for conventional and Islamic banks.

### Somalia Country Fund (SCF) — FY25 delivery and impacts
- FY25 outputs:
  - Delivered 25 technical assistance missions and trained 68 government officials.
- Fiscal outcomes:
  - Supported enactment of a landmark Income Tax Law—Somalia’s first major tax overhaul since 1966—and helped finalize implementing regulations.
  - Continued support on extractive industries: in-person workshop in September 2024 on drafting regulations for the Extractive Industries Income Tax Law and FARI modelling training.
  - Developed a wage bill reform roadmap adopted by Prime Ministerial decree; supported costing of new Pay and Grade policy including temporary workers.
  - FY25 PFM CD focus: public investment governance, fiscal operations digital solutions, legal frameworks; prepared for rollout of digital signatures in payment process; supported PPP Bill amendments to better manage fiscal risks.
- Monetary and financial sector support:
  - Helped CBS draft reporting templates for CAR and LCR; conducted governance workshop for CBS Board including Currency Board Arrangement training; supported alignment of Islamic banking supervision with international standards.
- Statistics:
  - Focused CD on national accounts: assisted SNBS in compiling GDP by expenditure up to 2023.
  - Supported compilation of government finance statistics aligned with international standards; initiated high-frequency indicators using satellite and non-traditional data.
- Participation and gender:
  - Since Phase II inception in 2017, total Somali officials trained: 333 (retained 315).
  - Rate of female officials trained increased from 13% to 16% in 2025.

### Pillar 2 — Sub-Saharan Africa: support through AFRITACs and ATI
- Pillar Two supports capacity development across sub-Saharan Africa via regional centers and the Africa Training Institute (ATI).
- FY25 financing and impact:
  - CD Partnership provided 8 million USD in support to ATI and three AFRITACs (AFRITAC East, AFRITAC West 2, AFRITAC South).
  - Contribution amounted to 29% of the CD delivered by these centers in the fiscal year.
  - 11.4% of the CD delivered was in Fragile and Conflict affected states.
- AFRITAC East (AFE) FY25:
  - Delivered 157 activities: 119 TA missions, 31 bilateral trainings and regional workshops, 7 peer-to-peer attachments.
  - Over 25% of resources directed to fragile states including Eritrea, Ethiopia, and South Sudan.
  - Achievements: strengthened tax compliance frameworks (Eritrea, Kenya, South Sudan, Zanzibar); improved SOE oversight (Kenya, Uganda, Rwanda, Zanzibar); advanced cash management and accrual accounting (Rwanda, Kenya, Malawi); supported Ethiopia in launching open market operations; supported GDP estimation and price statistics improvements across multiple countries.
- AFRITAC West 2 (AFW2) FY25:
  - Executed 136 activities by end-April 2025: 107 TA missions, 24 workshops, 5 attachments.
  - Focus areas: revenue mobilization, public financial management, monetary policy, financial sector regulation, statistics (GDP rebasing and price indices).
  - Notable deliverables: taxpayer registry improvements (Ghana, Liberia); audit and compliance strengthening (Nigeria, Sierra Leone); enterprise risk management (Cabo Verde, Ghana); TADAT completion in Liberia; GDP rebasing in Liberia, Nigeria, Sierra Leone.
- AFRITAC South (AFS) FY25:
  - Supported 13 members with over 145 missions, including 25 regional training events.
  - Focus: domestic revenue mobilization, trade facilitation, regional integration, PFM systems, financial sector resilience, macroeconomic statistics quality and dissemination.
  - Achievements: debt management strategies and annual borrowing plans (Mozambique, Comoros, Eswatini); market development for local-currency government bonds (Lesotho, Comoros, Seychelles); PIM guidelines and oversight policy frameworks (Eswatini); rebasing of national accounts (Comoros, Eswatini, Angola); compilation of GFS data per GFSM frameworks.
- Africa Training Institute (ATI) FY25:
  - Delivered 29 courses to 1,008 officials from 49 countries.
  - Topics: structural policies, fiscal policy, financial sector policies, monetary/exchange rate/capital account policies, macro analysis, macroeconomic statistics, legal issues, central bank safeguards assessment.
  - Demand and participation:
    - Average of six applicants per participant (highest oversubscription in ATI history).
    - Female participation: 39 percent.
    - Share of participants from FCS: 34 percent.
    - Share of non-anglophone participants: 45 percent.
  - Innovations: blended delivery pilots (Monetary Policy course), regionalized cohort approaches (Macroeconomic Diagnostics in Ghana), new course on Fiscal Frameworks, French debt sustainability course with World Bank, macroeconomic surveillance course with SADC.

### Pillar 3 — Global priorities: thematic funds and FY25 results
- Pillar Three supports the IMF’s global thematic funds: Global Public Finance Partnership (GPFP), Financial Sector Stability Fund (FSSF), Data for Decisions Fund, and Anti-Money Laundering/Combating the Financing of Terrorism Fund (AML/CFT TF).
- FY25 financing:
  - Support to Pillar 3 under the CD Partnership amounted to 5.95 million USD in FY25.
  - 19.6% of the CD delivered across these thematic funds in FY25 was delivered in Fragile and Conflict affected states.

- AML/CFT Thematic Fund (TF) FY25:
  - Established in 2009; in Phase III for FY2025.
  - FY25 workplan: 36 projects reaching 50 countries, including 18 single-country projects, one multi-country project covering four countries, 10 thematic projects covering 29 countries, two analytics and development projects, and CD delivery via five Regional Advisors.
  - MCD-region examples:
    - Algeria: strengthened supervisors’ understanding of money laundering, terrorist financing, and proliferation financing risks; developed risk-based supervisory tools and interim risk assessment matrix for 2025; improved transparency of legal entities; reviewed regulatory framework.
    - Yemen: drafted amendments to AML/CFT Law for Targeted Financial Sanctions; reviewed central bank regulations; assisted legislative updates and sensitization sessions.
  - Completed single-country projects in FY25: Botswana, Bhutan, Guatemala, Namibia, South Sudan (legal reforms, supervisory enhancements, capacity building).
  - Thematic projects included governance diagnostics, beneficial ownership training, analysis of Central Bank Digital Currency implications, illicit financial flows analytical tools.

- Global Public Finance Partnership (GPFP) — first full year FY25:
  - Launched January 2024; GPFP workplan prioritized low-income developing countries and FCS.
  - FY25 disbursements and delivery:
    - Deployed 22.5 million USD to support public finance CD across all five IMF regions.
    - Supported 12 MCD countries representing 20 percent of GPFP country portfolio.
    - Delivered 197 field-based and 68 remote activities, 36 workshops, and eight peer-to-peer learning sessions.
    - Early data indicate over half of GPFP project outcomes have been at least partially met on average.
  - Country results (examples):
    - Uzbekistan: supported PFM reform strategy; authorities adopted 2025-30 PFM Reform Strategy in April 2025.
    - Mauritania: GPFP supported revenue and spending reforms; authorities adopted a 2025 budget that introduced a carbon tax; amended public investment management decree and manual; preparing to pilot new PIM framework and start implementing climate budget tagging.
  - Outreach: GPFP Secretariat participated in UNDP’s 2025 Dialogue on Public Finance and the SDGs; visibility at 2024 Annual and 2025 Spring Meetings.

- Financial Sector Stability Fund (FSSF) FY25:
  - Supports programmatic CD on financial sector stability in LLMICs and FCS.
  - Two modules: Financial Reform Module (FRM) and Financial Statistics Module (FSM/FSSM).
  - FRM FY25 highlights:
    - Five new FSSR diagnostics completed: Kenya, Madagascar, Papua New Guinea, Somalia, Vanuatu.
    - One diagnostic (Zambia) initiated.
    - Seven follow-up TA projects finalized: Cambodia, Djibouti, Gambia, Guinea, Kosovo, Uzbekistan, Zimbabwe.
    - MCD outcomes: supervisory manuals and restructuring in Djibouti; solvency and liquidity stress testing frameworks in Uzbekistan.
    - Multilateral CD: online courses and the eighth annual Cybersecurity Workshop with MCD participation.
  - FSSM FY25 outputs:
    - 31 activities including 9 regional workshops, benefitting 19 countries, including Mauritania, Somalia, Yemen.
    - 5 TA missions for FSIs to Guinea, Mauritania, Samoa, Burundi, and COBAC; 6 remote FSI workshops covering all regions including MCD countries.
    - Under Phase I, 6 MCD countries began compiling core FSIs due to FSSF support.
    - BSA submodule: 9 TA missions in MFS, IIP, and GFS and 3 BSA training workshops for Asia Pacific and MCD regions; outcomes include new datasets in Yemen and Rwanda and enhancements to primary statistics in 10 MCD countries.

### Financial overview highlights (as of April 30, 2025)
- CD Partnership totals:
  - CD Partnership Total: 27,891,000 (Allocation) and 22,135,281 (Expenditures)
- Pillar 1 (Middle East, North Africa, Pakistan) summary (Allocations / Expenditures):
  - Pillar 1 Total: 13,95,000,0? (Note: allocation numbers in the table are presented as concatenated numeric strings in the source; see detailed tables for project-level budgets and balances.)
  - Regional Office Riyadh - Regional Office and Program: 7,900,000 (Allocation) / 2,949,631 (Expenditures)
    - Office CD Program: 4,100,000 (Allocation) / 2,714,386 (Expenditures)
    - Office (lease, fit out, etc.): 3,800,000 (Allocation) / 2,352,45? (Expenditures)
  - Capacity Development for Saudi Arabia: 1,000,000 (Allocation) / 1,946,50? (Expenditures)
  - Capacity Development in Middle East North Africa: 5,050,000 (Allocation) / 5,050,000 (Expenditures)
    - Middle East Technical Assistance Center: 4,000,000 (Allocation) / 4,000,000 (Expenditures)
    - Somalia Country Fund: 1,050,000 (Allocation) / 1,050,000 (Expenditures)
- Pillar 2 (Sub-Saharan Africa) summary:
  - Pillar 2 Total: 8,000,000 (Allocation) / 8,000,000 (Expenditures)
  - Capacity Development in sub-Saharan Africa: 8,000,000 (Allocation) / 8,000,000 (Expenditures)
    - AFRITAC West 2: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
    - AFRITAC South: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
    - Africa Training Institute: 2,000,000 (Allocation) / 2,000,000 (Expenditures)
- Pillar 3 (Global priorities) summary:
  - Pillar 3 Total: 5,941,000 (Allocation) / 5,941,000 (Expenditures)
  - Capacity Development in global themes: 5,941,000 (Allocation) / 5,941,000 (Expenditures)
    - Global Public Finance Partnership: 2,941,000 (Allocation) / 2,941,000 (Expenditures)
    - Financial Sector Stability Fund: 2,400,000 (Allocation) / 2,400,000 (Expenditures)
    - Anti-Money Laundering/ Countering Financing of Terrorism Fund: 6,000,006,000,00 (Note: figure appears concatenated in the source)
- Regional Office Riyadh cash flow (as of Apr 30, 2025):
  - Contributions: 38,00,000
  - Interest Earned: 79,828
  - Total Cash Available: 38,79,828
  - Expenses Paid: 2,35,245 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 36,44,583
- Regional Office Riyadh CD Program cash flow (as of Apr 30, 2025):
  - Contributions: 41,00,000
  - Interest Earned: 63,826
  - Total Cash Available: 41,63,826
  - Expenses Paid: 27,14,384 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 14,49,442
- Self-financed CD to Saudi Arabia cash flow (as of Apr 30, 2025):
  - Contributions: 10,00,000
  - Interest Earned: 18,146
  - Total Cash Available: 10,18,146
  - Expenses Paid: 1,94,648 (includes 7% Trust Fund Management Fee)
  - Cash Balance: 8,23,498

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_Source: https://www.imf.org/-/media/files/capacity-developement/partners/annual-report-fy2025-saudi-arabia-imf-partnership-capacity-development.pdf_