UAE to provide funding for IMF drive to combat poverty and boost sustainability

Two agreements signed with IMF during annual meetings in Washington

Mohamed Al Hussaini, UAE Minister of State for Financial Affairs, signs an agreement with IMF managing director Kristalina Georgieva on the sidelines of the IMF's Annual Meetings in Washington. Wam

The UAE on Thursday signed two agreements with the International Monetary Fund aimed at promoting sustainable development and supporting efforts to eradicate poverty around the world.

Mohamed Al Hussaini, UAE Minister of State for Financial Affairs, and IMF managing director Kristalina Georgieva signed the deals on the sidelines of the the IMF and World Bank Annual Meetings in Washington, which conclude on Saturday.

The agreements involve the Emirates contributing to the financing of the Poverty Reduction and Growth Trust, which the IMF describes as its main vehicle for providing interest-free financing to low-income countries, and the Resilience and Sustainability Trust, which assists low and middle-income countries to "build resilience to external shocks and ensure sustainable growth".

"This move reaffirms the UAE’s commitment to supporting international efforts aimed at sustainable development, poverty eradication, and strengthening the resilience of developing economies in the face of global challenges," Mr Al Hussaini said.

"We are confident that this partnership with the IMF will play a vital role in advancing global sustainable development goals while reinforcing the UAE's position as a key partner in shaping the global economic landscape."

According to the IMF, Poverty Reduction and Growth Trust lending is expected to reach nearly $40 billion this year, with 69 countries eligible for financing.

Amid increasing concerns about climate change,the Resilience and Sustainability Trust has taken on significantly more importance.

"We are confident that this partnership with the IMF will play a vital role in advancing global sustainable development goals while reinforcing the UAE's position as a key partner in shaping the global economic landscape," Mr Al Hussaini added.

Back in 2023, the UAE announced a $200 million commitment to the IMF's Poverty Reduction and Growth Trust fund, while also contributing an additional $200 million to theResilience and Sustainability Trust during the Cop28 climate meeting hosted in Dubai.

Mr Al Hussaini reflected on the UAE's presence at the IMF and the importance of the recent announcements.

"Our participation in the annual meetings of the World Bank Group and the IMF brought together global economic and financial leaders," he said.

"It offers a valuable platform for exchanging ideas and strategies to tackle pressing global economic challenges."