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.