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ABU DHABI // The UAE has become the Arab world’s biggest contributor to the International Monetary Fund after increasing its US$611 million (Dh2.2 billion) stake. Cabinet members agreed yesterday to raise the country’s share in the capital of the Washington-based fund.

Under existing arrangements, it contributes $611.7m in special drawing rights, valued on a basket of four key international currencies.

Each member of the IMF is assigned a quota to contribute to the fund based on its relative size in the world economy. The fund uses contributions to extend finance to poor countries or those beset by financial problems.

It is striving to replenish its capital after having to bail out Greece and other countries hit by the global financial crisis. It agreed to provide €30bn to Greece in May last year.

Quotas are reviewed at least every five years to reflect the changing economic size of members. The latest changes were approved in April 2008, and raised contributions by an overall 11.5 per cent. Leaders of the Group of Twenty major industrialised and emerging market economies decided last year to significantly increase the IMF’s lending capacity. The UAE joined the IMF in September 1972.

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