The Ministry of Finance (MoF), in cooperation with the Prime Minister’s Office and the International Monetary Fund (IMF), held a high-level closed session on economic diversification, on the sidelines of the World Government Summit 2017. The session aimed to discuss challenges and solutions to support thought-leaders during the implementation of economic diversification policies and change the economic models to build economies based on innovation and knowledge in the region.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Christine Lagarde, Managing of Director of the IMF, headed the session which was attended by a number of ministers of finance and Arab central bank governors, including Sir Suma Chakrabarti, President of the European Bank for Reconstruction and Development; Dr. Bandar bin Hajjar, President of the Islamic Development Bank (IsDB); Dr. Abdulrahman A. Al Hamidy, Director General, Chairman of the Board of the Arab Monetary Fund and heads of global and regional economic and financial institutions.

During his opening speech, Obaid Humaid Al Tayer stressed the need to develop sustainable government revenues by depending on alternative resources, controlling expenditure and adjusting financials to drive economic growth, while maintaining global financial and economic stability.

Christine Lagarde highlighted that strong economic principles support UAE to adapt to new oil prices. She also highlighted that the country will maintain its successful performance in the future by considering structural reforms to increase economic diversification, enhance business and public resources and strengthen public institutions.

Lagarde stressed the role of economic diversification in encouraging strong economic growth and developing job opportunities during less favourable financial conditions. She also discussed that reducing the UAE dependency on oil, strengthening the private sector and increasing job opportunities can be achieved through the implementation of strong macroeconomic policies, maintaining an active working environment and improving the quality of education. Christine Lagarde also stressed that supporting innovation is a key element to achieve continuous growth in today’s rapidly changing world.

Al Tayer said: "The decline in oil prices in the UAE led to a number of opportunities for the economic restructuring, promoting economic diversification policies, which were laid down since the early eighties by the late Sheikh Zayed bin Sultan Al Nahyan, followed by the guidance of His Highness Sheikh Khalifa bin Zayed Al Nahyan. These policies play an important role in promoting sources of income, building a knowledge based economy, with a strong spirit of excellence and innovation."

Al Tayer also stressed that the dependence on oil for the GDP does not exceed 30%, whereby our leadership provided an appropriate environment to expand productivity, increased dependency on non-oil sectors, by investing in infrastructure, growing the manufacturing sector, supporting foreign trade to contribute to the GDP, and achieving economic integration and sustainability for the country."

"The National Strategy for Innovation reflects the country’s strong commitment to diversifying the economy. The strategy works on establishing a new set of legislations centered on innovation, building national capacity, activating the private sector, establishing international research partnerships, stimulating innovation in the seven key national sectors including renewable energy, transport, education, health, technology, water and space,'' he added.

MoF also organised on the sidelines of the World Government Summit, the Second Arab Fiscal Forum in collaboration with the AMF and IMF, to discuss developments on public finance in the Arab region. The Ministry of Finance will also hold a workshop on Fintech, to review the role of finance technology services in government financial work, and highlight the Ministry’s role in achieving the future agenda.