The United Arab Emirates (UAE) has received commendation from the International Monetary Fund (IMF) for its enhancements to the AED Dirham monetary framework. The IMF statement, following a visit by an IMF staff team led by Mr. Said Bakhache, praised the progress made in the rollout of the Digital Dirham (CBDC) project and the proactive stablecoin regulations implemented by the country. The IMF called for the continuation of modernization efforts, emphasizing the importance of conducting careful risk assessments while promoting the development of the local capital market.
In the realm of cryptocurrency, the IMF statement acknowledged the UAE’s growing status as a global hub for virtual assets. However, it stressed the necessity for strong coordination among regulators to monitor risks and developments in the crypto space. The statement highlighted the importance of aligning with international regulatory standards and strengthening supervisory capacity to ensure financial stability while fostering responsible innovation. The IMF also commended the UAE for its efforts under the National Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Strategy and Action plan, which led to the country’s removal from enhanced monitoring by the Financial Action Task Force.
In September 2025, the UAE Ministry of Finance signed the Multilateral Competent Authority Agreement (MCAA) and joined the global Crypto-Asset Reporting Framework (CARF). The UAE is set to implement the CARF in 2027, enabling the country to share crypto-asset-related information with international tax authorities starting in 2028. CARF facilitates the automatic exchange of crypto-asset information between tax authorities and is aligned with global standards for information exchange for tax purposes, with nearly 70 jurisdictions committed to its implementation.
The IMF lauded the UAE’s economic resilience in the face of global uncertainty and regional tensions, noting the strength and soundness of the country’s financial sector. The UAE was projected to experience robust economic growth, with GDP expected to expand by 4.8 percent in 2025 and further accelerating to 5.0 percent in 2026. The growth was attributed to strong non-hydrocarbon growth and a rebound in hydrocarbon output due to increased production by OPEC+. The expansion in sectors such as tourism, construction, and financial services, supported by major infrastructure projects, was identified as key drivers of growth. Inflation was projected at 1.6 percent in 2025, with housing costs being a primary source of price pressures.
The IMF highlighted the strength of the UAE’s financial sector, noting that banks remained profitable and that exposure to the real estate sector had decreased to about 18% of risk-weighted assets. The IMF’s statement underscored the importance of monitoring external shocks, real estate price developments, and cybersecurity risks to ensure continued economic stability in the UAE.