An International Monetary Fund (IMF) statement following a visit by an IMF staff team led by Mr. Said Bakhache to the UAE has commended the country on its enhancements to the AED Dirham monetary framework. It praised the progress in the rollout of the Digital Dirham (CBDC) project, as well as its proactive stablecoin regulations. The IMF statement called for modernization efforts to continue including careful assessments of risks while promoting local capital market development. When it came to crypto the IMF statement noted that while the UAE is growing as a global hub for virtual assets, this should be supported by continued strong coordination among regulators to monitor risks and developments. The IMF statement noted, “Ongoing efforts to continue alignment with international regulatory standards and strengthen supervisory capacity are welcome and will be critical to safeguarding financial stability while promoting responsible innovation. We welcome the major efforts under the National AML/CFT Strategy and Action plan that resulted in the recent removal of the UAE from enhanced monitoring under the Financial Action Task Force and encourage continued progress.” UAE increases cooperation in crypto information sharing In September 2025, Cryptopolitan reported that the United Arab Emirates (UAE) Ministry of Finance signed a Multilateral Competent Authority Agreement (MCAA) and joined the global Crypto-Asset Reporting Framework (CARF). The UAE framework is scheduled to roll 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 standards in the exchange of information for tax purposes. Close to 70 jurisdictions have committed to implementing CARF, with most preparing for their first information exchange in 2027 or 2028. UAE GDP projected to expand by 4.8 percent in 2025 The IMF praised the UAE’s resilience against global uncertainty and regional tensions, and noted that the financial sector remains strong and sound. It emphasizing that the UAE should monitor external shocks, real estate price developments, and cybersecurity, which is needed. As per the statement , the UAE is projected to grow strongly well above the global average. In 2025, GDP is projected to expand by 4.8 percent 2025, driven by robust non-hydrocarbon growth and a rebound in hydrocarbon output as OPEC+ production increases, accelerating further to 5.0 percent in 2026. It also noted that expansion in tourism, construction, and financial services continues to underpin growth, supported by major infrastructure projects. Inflation is projected at 1.6 percent in 2025 and around 2 percent over the medium term. Housing costs are expected to be the primary source of price pressures, raising potential concerns about affordability, while tradables remain subdued. The IMF also noted that the UAE’s financial sector remains strong and sound, with banks remaining profitable, while the UAE banks’ exposure to the sector has gradually declined to about 18% percent of risk-weighted assets. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.
