The world today is experiencing unprecedented economic, geopolitical, and technological shifts that are reshaping government priorities and redefining fiscal policy frameworks.

According to international institutions, global uncertainty has returned to levels not seen since the COVID-19 pandemic, directly affecting financing costs and the timing of investment decisions.

Fiscal policy is therefore facing a critical test of resilience. In a rapidly evolving world, public finance is no longer confined to managing revenues and expenditures; it has become a strategic instrument for strengthening economic resilience, enhancing adaptability, and enabling sustainable growth.

Against this backdrop, our participation in the World Governments Summit provides a vital platform to rethink the role of fiscal policy in an age of transformation.

The Summit is more than an international gathering; it is a space for shaping shared visions on the future of governance, linking institutional innovation with economic policymaking, and reinforcing international cooperation in addressing challenges that transcend national borders.

Global economies are operating in an environment defined by heightened uncertainty, shifting trade dynamics, and accelerating digital transformation. In January 2026, the International Monetary Fund projected global growth to stabilise at 3.3% in 2026, with technology and artificial intelligence investment acting as key drivers of resilience.

Regionally, the Gulf is expected to achieve strong growth of around 4.5% in 2026, supported by robust non-oil expansion and ongoing structural reforms. However, this outlook requires more proactive and flexible fiscal strategies capable of balancing financial stability with development-driven investment.

Macroeconomic resilience cannot be secured through short-term measures alone. It depends on structural reforms that improve expenditure efficiency, strengthen debt management frameworks, and broaden the revenue base.

Such reforms reinforce investor confidence, enhance fiscal credibility, and create a stable, attractive environment for long-term capital deployment. Regional and international fiscal dialogues have consistently highlighted this path as essential to sustainable economic development.

This transformation is increasingly shaped by the strategic integration of advanced technologies.

Artificial intelligence and digital solutions are no longer merely operational tools; they have evolved into strategic drivers of higher-quality fiscal policymaking, enhanced transparency, and more efficient public resource management.

They are also contributing positively to global economic growth. The International Monetary Fund estimates that artificial intelligence could raise global growth by between 0.1% and 0.5% annually over the medium term.

When deployed within balanced and robust governance frameworks, advanced technologies create meaningful opportunities for governments to deliver more efficient public services, strengthen risk management capabilities, and enable data-driven decision-making.

Equally important is the strengthening of international partnerships as a cornerstone of modern fiscal policy development. Global economic challenges, from market volatility to development financing pressures, require deeper coordination among governments and financial institutions.

Evidence consistently shows that knowledge exchange and effective cooperation networks enhance financial stability, particularly in economies seeking to diversify growth engines and broaden their investment base. Regional fiscal coordination can also accelerate infrastructure financing and improve resilience to external shocks.

In this regard, the WGS has emerged as a critical platform for advancing policy integration at the Gulf, Arab, and international levels. It underscores the imperative of moving beyond basic coordination toward long-term institutional partnerships. Recent editions have increasingly focused on macroeconomic policy alignment, recognising that neither monetary nor fiscal policy alone is sufficient to manage elevated uncertainty and its economic spillovers.

The WGS sessions have provided an important platform for promoting discussions on such integration at the Gulf, Arab, and international levels, demonstrating the need to move beyond coordination toward long-term institutional partnerships.

In its recent editions, the Summit has increasingly focused on macroeconomic policy alignment, recognising that neither monetary nor fiscal policy alone can effectively manage uncertainty and its economic spillovers.

Within this framework, financing development has become a key theme of the Summit's dialogue. Investment in infrastructure, human capital, and digital transformation requires innovative financing mechanisms and effective public-private partnerships.

This highlights the need for flexible fiscal frameworks capable of directing resources toward sectors that deliver sustainable economic and social returns, while preserving financial stability.

The UAE's experience demonstrates that balanced fiscal policies combining financial discipline with strategic investment flexibility can create a competitive economic environment that stimulates innovation and long-term growth.

Through active participation in international policy discussions, the UAE seeks to play a key role in shaping a forward-looking fiscal model anchored in sustainability, sound governance, and deeper economic integration.

In this context, the UAE Government prioritises maintaining a stable business environment and strengthening investor confidence through clear and transparent policies. This policy framework has translated into strong performance in foreign direct investment (FDI).

According to the latest data from the United Nations Conference on Trade and Development (UNCTAD), the UAE recorded a historic high of USD 45.6 billion in FDI inflows in 2024, securing its position as the world's 10th largest recipient of foreign direct investment, up from 11th place in 2023.

The UAE's strong sovereign credit profile further reinforces this confidence. The country has maintained high sovereign credit ratings from Standard & Poor's, Fitch, and Moody's, all with stable outlooks.

This consistent assessment by the three major rating agencies showcases the confidence in the UAE's solid fiscal fundamentals and its sustained commitment to economic diversification.

Finally, the future of fiscal policy will not be measured solely by its ability to manage numbers, but by its contribution to building more efficient economies, stronger institutions, and more prosperous societies. In a rapidly changing world, fiscal resilience, institutional innovation, and international cooperation are no longer optional, they are essential to sustaining long-term growth.

The World Governments Summit reinforces the message that fiscal policy is not merely a technical instrument, but a strategic choice that shapes the future. Ultimately, the success of governments will depend on their ability to adapt, innovate, and collaborate in an increasingly complex global environment.

HE Mohamed bin Hadi Al Hussaini

Minister of State for Financial Affairs