United Arab Emirates: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the United Arab Emirates
IMF Staff Country Reports, October 16, 2007
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- United Arab Emirates: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the United Arab Emirates
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Bibliographic details
- Published: October 16, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451801170.002
Overview
- The 2007 Article IV Consultation on the United Arab Emirates (UAE) examines the near- and medium-term outlook, inflation, and fiscal policy.
- The rapid expansion is supported by an outward-oriented development strategy and sustained high oil prices.
- Reforms are under way to:
- strengthen the prudential and regulatory oversight of the banking system and the capital markets;
- open the banking sector to greater competition; and
- strengthen the legal framework for the financial sector.
- Executive Directors agreed that the key challenges will be to ensure sustained noninflationary growth and further diversification of the economy.
Near- and Medium-Term Outlook, Inflation, and Fiscal Policy
- Focus areas of the consultation:
- near- and medium-term economic outlook;
- inflation developments; and
- fiscal policy stance.
- Growth drivers identified:
- outward-oriented development strategy;
- sustained high oil prices.
Financial Sector Reforms
- Ongoing reforms highlighted:
- strengthen prudential oversight of the banking system;
- strengthen regulatory oversight of the capital markets;
- increase competition in the banking sector by opening it to greater competition;
- strengthen the legal framework governing the financial sector.
Policy Challenges and Recommendations
- Key challenges agreed by Executive Directors:
- ensure sustained noninflationary growth;
- further diversify the economy away from oil dependence.