An International Monetary Fund (IMF) statement following the visit of a team of IMF officials led by Saeed Bahache to the UAE praised the country for strengthening its AED dirham monetary framework.
He praised the progress in the development of the Digital Dirham (CBDC) project and its proactive stablecoin regulation. The IMF statement called for continuing modernization efforts, including careful assessment of risks, while promoting the development of regional capital markets.
Regarding cryptocurrencies, the IMF statement noted that while the UAE is growing as a global hub for virtual assets, this should be supported by continued strong collaboration between regulators to monitor risks and trends.
An IMF statement said: “Continued efforts to align with international regulatory standards and strengthen supervisory capacity are welcome and critical to safeguarding financial stability while fostering responsible innovation. We welcome the major initiatives under the National AML/CFT Strategy and Action Plan that recently resulted in the removal of the UAE from enhanced oversight by the Financial Action Task Force, and encourage continued progress.”
UAE strengthens cooperation in sharing cryptocurrency information
In September 2025, Cryptopolitan reported that the United Arab Emirates (UAE) Ministry of Finance signed the Multilateral Competent Authority Agreement (MCAA) and joined the global Cryptoassets Reporting Framework (CARF). The UAE framework is expected to be rolled out in 2027, after which the UAE is expected to begin sharing data with international tax authorities in 2028.
CARF provides an international standard for the automatic exchange of crypto-asset related information between tax authorities and is part of the global standard for tax information exchange. Nearly 70 jurisdictions are working to implement CARF, with most preparing to conduct their first exchanges in 2027 or 2028.
UAE GDP expected to expand by 4.8% in 2025
The IMF praised the UAE’s resilience to global uncertainties and regional tensions, noting that the financial sector remains strong and healthy. The report highlights that the UAE should monitor external shocks, real estate price trends, and required cybersecurity.
According to the statement, the UAE is expected to experience strong growth, well above the global average. GDP in 2025 is expected to expand by 4.8% on strong non-hydrocarbon growth and a recovery in hydrocarbon production due to OPEC+ production increases, further accelerating to 5.0% in 2026.
It also noted that expansion in tourism, construction and financial services continue to support growth, supported by large-scale infrastructure projects. The inflation rate is expected to be 1.6% in 2025, and around 2% in the medium term. Housing costs are expected to be the main source of price pressure, raising potential affordability concerns, while traded goods remain weak.
The IMF also noted that while the UAE’s financial sector remains strong and healthy and banks continue to earn profits, UAE banks’ exposure to the sector has gradually declined to around 18% of their risk-weighted assets.
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