Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), praised Egypt’s progress in expanding the use of digitalization within its tax system, highlighting it as a positive reform that supports efficiency and transparency.
Her remarks came during her speech at the 10th Annual Arab Fiscal Forum in Dubai, which saw high-level participation from finance ministers of Jordan, Libya, Lebanon, Somalia and Syria, alongside central bank governors from Bahrain, Egypt, Libya, Mauritania, Palestine, Tunisia, the UAE and Yemen.
Egypt’s Finance Minister, Ahmed Kouchouk, had previously stated that electronic tax systems have helped ease procedures for taxpayers while expanding the tax base. He noted that automated systems have enhanced the government’s ability to build trust, partnership and certainty with the tax community.
Georgieva also commended the experiences of Jordan and Morocco in tax digitalization, as well as the implementation of value-added tax (VAT) in Gulf Cooperation Council (GCC) countries and the adoption of a global minimum corporate income tax.
On the regional outlook, the IMF chief expected the Arab economy to grow by 3.7% this year. Oil-exporting countries are set to benefit from increased production, while oil-importing nations are gaining from lower energy prices, higher remittances from expatriates and a recovery in tourism activity.
She pointed to improving fiscal conditions across the region, noting that several countries have regained access to international financial markets. A number of economies have also made tangible progress in diversification and investment in digital infrastructure to harness the potential of artificial intelligence.
Georgieva added that the IMF is intensifying efforts to support entrepreneurship and boost foreign direct investment, reaffirming the Fund’s readiness to assist the region through technical advice, financing and capacity development.
Globally, she forecast world economic growth of 3.3% this year and 3.2% in 2027, supported by private sector resilience, easing financial conditions and ongoing reforms, particularly in emerging markets. Global inflation is expected to decline to 3.8% this year and 3.4% by 2027, driven by weaker demand and lower energy prices.
However, Georgieva warned that rising geopolitical tensions are increasing uncertainty, while protectionist trade policies could undermine investment and growth prospects. She also cautioned that high and rising debt levels in many countries may reach unprecedented levels in the coming years, potentially pushing up global borrowing costs.
