News

The Arab Monetary Fund’s composite index of Arab capital markets recorded a decline of 0.72% during August, impacted by decreases in eight Arab stock exchanges, compared to increases in six others.

In detail, the Muscat Stock Exchange led the advancing markets with a rise of 5.21%, followed by the stock exchanges of Egypt, Iraq, Casablanca, and Amman. On the other hand, the stock exchanges of Damascus, Palestine, Abu Dhabi, and Saudi Arabia experienced notable declines, with Damascus registering the largest drop of 8.84%, followed by Palestine with 5.20%.

Globally, advanced markets ended trading in August with positive performance, as the Nikkei, Dow Jones, and Standard & Poor’s indices rose between 1.91% and 4.01%, despite persistent concerns over increased U.S. tariffs on imports from the European Union, India, and Brazil.

H.E. the Governor of the Central Bank of Jordan opened the festival with a speech welcoming participants and Arab and international delegations, stressing that hosting this event reflects a national vision that Jordan is steadily moving toward consolidating its position as a regional hub for innovation in the fintech industry. His Excellency noted that the Kingdom, under the leadership of His Majesty King Abdullah II Ibn Al Hussein, and with the support and follow-up of His Royal Highness Crown Prince Al Hussein bin Abdullah II, has made significant progress in developing digital payments infrastructure, enacting advanced legislation such as the Virtual Assets Law, and enhancing financial inclusion in line with global best practices.

H.E. the Governor of the Central Bank of Jordan inaugurated the workshop with welcoming remarks, emphasizing that virtual assets have become one of the most pressing global issues shaping economic and regulatory agendas. He highlighted that virtual assets are not only a fertile ground for innovation and the development of financial services but also present significant challenges and risks related to money laundering, terrorist financing, consumer protection, and financial system stability.
His Excellency noted that Jordan, under the guidance of His Majesty King Abdullah II Ibn Al Hussein and the follow-up of His Royal Highness Crown Prince Al Hussein bin Abdullah II, has in recent years conducted in-depth studies on this phenomenon and engaged in consultations with regional and international partners. This effort culminated in the enactment of Virtual Assets Law, which serves as the cornerstone for establishing a comprehensive, balanced, and nationally tailored legislative and regulatory framework aligned with global best practices.

The workshop was inaugurated by H.E. Dr. Fathi Zouhair Nouri, Governor of the Central Bank of Tunisia, and H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, with the participation of a number of governors of Arab central banks and monetary institutions. Also attending were representatives of prominent international institutions such as the Bank for International Settlements, the Financial Stability Board, the European Stability Mechanism, the Central Bank of Turkey, and the Central Bank of West African States, in addition to a distinguished group of experts and specialists.

The workshop discusses monetary and fiscal policies in light of rapid global changes, with a focus on three main themes: monetary policy amid uncertainty, financial stability, and the readiness of the financial sector to confront crises. This comes at a time when the global economy is facing mounting challenges that call for closer cooperation between regional and international financial institutions.

The meeting was inaugurated by H.E. Ms. Mishkat Al-Khaldi, Minister of Finance of Tunisia, with the participation of H.E. Mr. Burai Al-Siddiq Ahmed, Governor of the Central Bank of Sudan and current Chair of the Council, and H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, along with a number of governors and representatives of regional and international financial institutions.

The discussions addressed key economic challenges, particularly the impact of trade wars on economic stability and the role of monetary policy in responding to global uncertainty. The meeting also examined ways to enhance cybersecurity in the financial sector and reviewed progress on the Arab Instant Payments Initiative.

The agenda further included discussions on Arab financial and economic stability reports and preparations for the Joint Arab Statement to the upcoming IMF and World Bank Annual Meetings.

Banking, real estate, and energy sectors supported the overall performance, with the “MSCI Arab Markets Index” rising by 2.36%. The decision of Arab central banks to maintain interest rates, in line with U.S. monetary policy, also contributed to supporting liquidity and deepening markets.

Globally, markets witnessed relative stability, underpinned by optimism over the trajectory of trade negotiations. U.S. and European markets posted gains, led by the FTSE (4.24%) and Nasdaq (3.70%). In Asia, the technology sector was the main driver, while emerging markets registered mixed gains, against a decline in Latin America of 4.60%.

Download the full bulletin here:

https://www.amf.org.ae/ar/publications/nshrt-aswaq-almal/alnshrt-alshhryt-laswaq-almal-alrbyt-aldd-altas-walkhmswn

The workshop aims to strengthen the understanding of the new System of National Accounts, support member countries in preparing digital supply and use tables, and discuss issues related to the digital economy, sustainability, and economic well-being.

The workshop will include a high-level session with the participation of leaders from international and regional institutions to discuss ways of supporting the implementation of the new system and enhancing statistical cooperation.

Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, emphasized the importance of the workshop in exchanging expertise and strengthening the statistical capacities of Arab countries, underscoring the AMF’s role in supporting economic stability and providing technical assistance to its member states.

In this context, H.E. Dr. Fahad M. Alturki, Director General Chairman of the Board of the Arab Monetary Fund, commended the efforts of Arab central banks and monetary authorities in maintaining the soundness of the financial and banking sector, strengthening its stability, developing regulatory frameworks, policies, and prudential measures, and applying leading international standards and practices. He also praised the topics addressed by the Task Force, as well as the participation of relevant regional and international financial institutions and frameworks, highlighting their important role in enriching the discussions. Finally, His Excellency noted the keen interest of the Governors of Arab central banks and monetary authorities in the work of the Task Force and its prominent role in exchanging experiences and expertise at both the regional and international levels. 

Estimates indicate an improvement in the growth rate of Arab economies, with a projected rate of 3.8% in 2025, rising to 4.3% in 2026, compared to 2.2% in 2024. This anticipated growth is driven by ongoing economic reforms, income diversification efforts, and improvements in the financing and investment environment.

Conversely, inflation rates are expected to continue declining, reaching approximately 20.8% in 2025 and 14.2% in 2026, down from 31.9% in 2024. Excluding countries experiencing exceptional inflationary pressures, inflation is projected at 7.6% in 2025 and 5.6% in 2026.

The report outlines key priorities for economic policies, particularly in the areas of fiscal and monetary policy, with an emphasis on enhancing fiscal sustainability, diversifying revenue sources, and improving spending efficiency.

Eleven Arab exchanges ended the quarter in positive territory, led by the Palestine Exchange with an impressive gain of 18.29%, followed by Dubai (11.96%) and Abu Dhabi (6.28%). In contrast, four markets posted declines, with the Saudi Exchange and Iraq’s bourse recording the largest drops at -7.16% and -4.33%, respectively.

Despite the upward momentum in market indices, total market capitalization across Arab exchanges fell by 2.42%, reaching $4,221.54 billion. Trading values also declined by 8.04%, amounting to $230.38 billion.

The improved performance was supported by a combination of factors, including rising oil prices, easing global trade tensions, and accommodative monetary policies. The U.S. Federal Reserve held interest rates steady, while the Bank of England and the European Central Bank introduced rate cuts. Meanwhile, most Gulf central banks maintained their rates, and the Central Bank of Egypt lowered its deposit rate to 24%.