Dubai: Kuwait participated on Monday in the Ninth Arab Fiscal Forum in Dubai, with a delegation headed by Finance Minister and State Minister for Economic and Investment Affairs Noura Al-Fassam.
According to Kuwait News Agency, the forum, in its current edition, is held under the theme: "Fiscal Resilience in an Era of Uncertainty: Balancing Development Needs, Climate Action, and Debt Sustainability." It is jointly organized by the Arab Monetary Fund (AMF) and International Monetary Fund (IMF) in collaboration with UAE Ministry of Finance.
The ministry explained that the forum held several discussions that explored opinions and perceptions about economic resilience considering geopolitical developments and its impact on countries' public finances, debt, inflation, and unemployment rates, and the ability of the global economy to withstand pressures in light of additional upcoming challenges.
The statement quoted Al-Fassam as saying that today's discussion comes in light of global trends and efforts among various parties to focus on digital transformation, face globalization's effects, a carbon-free economy, and reduce debt levels.
Al-Fassam added that the discussion focused on the fact that the high level of public debt threatens the financial and economic stability of many economies around the world and limits their ability to fulfill their commitments in their development plans.
She explained that despite the importance of the public debt instrument as a tool that stimulates economic growth, it must be dealt with prudently and responsibly so that it does not affect the financial stability of a country. Al-Fassam also noted the importance of developing financial policies that enhance public revenues and achieve a balance between the requirements of economic growth and financial obligations, taking into account the risks related to borrowing and maintaining the debt-to-GDP ratio to be between 50 and 70 percent.
She stressed that in the event of resorting to debt as a financing instrument, several matters must be taken into consideration to manage it sustainably, namely maintaining financial balance, managing the impact of debt on markets, and economic stability.
The forum brings together Arab finance ministers, economists, and officials from international and regional financial institutions, IMF Director General Kristalina Georgieva, and AMF Director General Dr. Fahad Al-Turki. This edition convened Monday ahead of the World Government Summit 2025, which kicks off in Dubai Tuesday, and continues until February 13.