BAKU, Azerbaijan, Feb.9. The International Monetary Fund and the Arab Monetary Fund have renewed and expanded their cooperation under an updated Memorandum of Understanding, Trend reports via the IMF.
The agreement was signed by IMF Managing Director Kristalina Georgieva and Arab Monetary Fund Director General Fahad M. Alturki on the sidelines of the AlUla Conference for Emerging Market Economies in Saudi Arabia.
The updated MoU aims to deepen collaboration on macroeconomic surveillance, lending coordination, technical assistance and training, as well as data and information exchange, the institutions said.
Georgieva said the agreement would strengthen efforts to promote macroeconomic and financial stability and inclusive growth in the Arab region, particularly amid heightened global economic uncertainty.
Alturki said the renewed partnership would enhance the region’s financial safety net and improve joint work on surveillance, programs, data and analytical research to better meet the needs of member countries.
The agreement runs through 2036 and builds on recent initiatives, including the establishment of the IMF’s regional office in Riyadh and the Arab Monetary Fund’s medium-term strategy approved in 2024.
Earlier, the IMF Managing Director Kristalina Georgieva said that the organization stands ready to support the Arab region—with integrated policy advice, financing, and capacity development.
She said the Arab region has also demonstrated resilience, with growth expected to increase to 3.7 percent this year. Oil-exporting countries are benefiting from higher production, while oil importers are gaining from lower prices, strong remittances, and a rebound in tourism. Financial conditions have improved, several countries have regained market access, and some have made progress in economic diversification and infrastructure investment, including efforts to harness artificial intelligence. Economies emerging from conflict, she added, are beginning the difficult path to recovery.
At the same time, Georgieva warned that “daunting risks remain,” citing geopolitical tensions, trade protectionism, rising debt levels, and uncertainty over AI-driven productivity gains. She also pointed to continued conflicts and significant humanitarian needs across parts of the region.
Oil price volatility remains a key concern, she said, noting that prices could weaken if global demand softens amid trade tensions, while the unwinding of OPEC+ production cuts could worsen supply-demand imbalances.