PHOTO
DUBAI: H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, has reviewed a report on the achievements of the Ministry of Finance for the past three years, during which the ministry has experienced a significant transformation towards achieving financial sustainability and strengthening the UAE’s status as a global investment hub..
Over the past three years, the Ministry has accomplished several major goals, including adopting the largest federal budget in the nation's history, implementing a federal revenue governance system, and issuing government treasury bonds and Islamic treasury sukuk. Furthermore, the Ministry has strengthened partnerships between the federal public and private sectors, achieved significant developments in digital transformation, managed government assets efficiently, and played a vital role in the integration of the Gulf Common Market. It has also maintained a prominent role in regional and international organisations, representing the UAE in global initiatives, and initiated transformative projects across multiple strategic domains to boost the nation’s competitive edge.
H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum stated: “Thanks to the vision and directives of our wise leadership, led by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, the UAE is making steady progress towards achieving its sustainable economic and social goals, solidifying its position as one of the world’s leading financial hubs.”
“Our growth is driven by ambitious strategies and sound financial policies, keeping pace with global economic changes and building on a proven track record of achievements in the financial and economic sectors,” H.H. added.
Sheikh Maktoum praised the efforts of the Ministry's teams, which has significantly contributed to achieving the growth targets of the national economy and establishing the UAE’s influential presence in the financial sector regionally and internationally.”
H.H. continued: “The Ministry of Finance worked across multiple fronts to drive financial growth in all key sectors, seeking to develop an integrated financial system supported by innovative policies, programs, and initiatives that would promote the UAE’s position and competitiveness. We behold the future with optimism and remain committed to launching and supporting transformative initiatives and projects that contribute to the development of the financial sector in the UAE and support our future strategic plans.''
Since H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum assumed the helm of government financial operations in the UAE on 25th September 2021, the Ministry has achieved remarkable achievements in several domains. Through the adoption innovative financial policies and launching strategic programmes, initiatives, and plans, the Ministry has been keen to direct resources in alignment with the vision of the wise leadership to establish the foundations of financial growth, enhance economic resilience and diversification, and provide a dignified life for its citizens.
As part of its commitment to enhancing financial sustainability through effective federal budget management and revenue governance, the Ministry of Finance adopted the federal budget for 2022-2026, totaling AED 290 billion. This is the largest budget in UAE history and reaffirms the country’s commitment to allocating resources strategically to meet the nation's development goals and enhance vital sectors that improve the quality of life and social welfare for the Union's citizens.
In terms of financial governance, the Ministry implemented a policy for collecting federal government revenues through commercial banks operating in the UAE and developed an innovative digital system for revenue collection. From the moment the value-added tax was implemented in 2018 until the first half of 2024, the Ministry has collected over AED 186 billion in revenues, demonstrating a substantial breakthrough in financial governance. Additionally, the revenue collected from selective tax reached over AED 16 billion.
The Ministry of Finance has also established a robust partnership system between the federal and private sectors to support the growth and sustainability of the national economy. This move aimed to optimise the use of available resources and enhance government performance by leveraging private sector expertise in financial, administrative, and technological fields.
In 2023, Federal Law No. 12 on Regulating the Federal Public-Private Partnerships (PPP) was enacted, marking the first comprehensive framework for collaboration between the two sectors. In June, the Ministry issued the Public-Private Partnership Manual for Projects and Execution, following approval by the Council of Ministers.
The manual details the procedures and requirements government entities and private sector partners must follow throughout various project stages. To promote understanding of these partnership procedures, the Ministry also organised workshops to introduce federal agencies and partners to the guide’s application mechanisms.
In line with the UAE's Digital Government Strategy 2025, the Ministry of Finance has made significant strides in digital transformation, artificial intelligence, and integrated digital services. It has adopted an innovative approach to designing its digital services, applying advanced technologies through the launch of the Government Digital Procurement Platform, which serves more than 30 federal entities and businesses.
The platform introduces a new concept for government procurement, akin to e-shopping on major platforms, enabling federal entity users to select products and services from a product catalogue, add them to a procurement basket, and allocate the necessary credits directly—eliminating the need for tender publications and contract creation. This innovation has significantly shortened the procurement process.
Additionally, UAE PASS offers three key features within the digital identity framework: Single Sign-On, Digital Signature, and Electronic Seal. These features aim to streamline access to financial services for individuals, government entities, and businesses while enhancing the security and efficiency of digital transactions.
The digital procurement platform enables 100% digital execution of procurement processes between federal entities and the business sector, both domestically and internationally. This includes tendering, supplier negotiations, reverse bidding, digital contract creation and signing via UAE Pass, billing, payments, and smart reporting.
Moreover, the platform's digital procedures support the business sector's contribution to the national economy by incorporating the requirements of the National Content Program and Emiratization initiatives into procurement processes.
The Ministry has also set itself apart by incorporating advanced generative AI solutions, integrating GPT-3.5 and GPT-4 technologies into its customer service and document analysis systems. This integration enables the provision of precise and instantaneous responses to customer enquiries.
The AI-driven solutions also include simultaneous translation and automated document processing, ensuring precise extraction of required fields from content, which significantly enhances the speed and efficiency of service delivery.
In addition, the Ministry has launched innovative initiatives to improve service quality, such as the Zero Government Bureaucracy Initiative, aimed at streamlining government procedures. Such initiatives have yielded tangible results, reducing time and effort while enhancing the overall customer experience.
The Ministry has also made the most of the latest technologies and AI to develop various government services, supporting the UAE's "Services 2.0" approach to designing the future of government services.
Some of the key services that have been enhanced include processing requests from federal entities regarding federal government real estate, registering suppliers in the Federal Suppliers Register, and handling requests for full or partial exemptions from debts and dues owed to the state.
These developments have focused on ensuring easy access to services through frequently used customer channels, integrating value-added features that expedite transaction completion.
In the area of federal government asset management, the Ministry of Finance has made significant progress by playing a key role in utilising these assets efficiently and sustainably, something which has reflected positively on maintaining the country's strong credit rating and reinforcing the UAE's leadership in fixed asset management.
The Ministry adopted a comprehensive asset management strategy, which incorporates initiatives based on the latest international technologies and best practices.
In 2023, Federal Decree-Law No. (35) on Federal Properties was issued, governing the management of federal government movable and immovable assets. Additionally, the Ministry developed new policies for managing fixed assets, inventory, and leasing, aligning them with federal accounting standards and leading international practices.
Also in 2023, the Ministry completed an inventory and valuation of federal government real estate assets, further strengthening the federal government's financial position. It implemented a digital tracking system for fixed assets using RFID technology to automate asset operations and ensure efficient management.
Furthermore, the Ministry has initiated the development of an electronic platform, the Real Estate Assets Registry, to register the union’s real estate assets. The platform enhances transparency, strengthens financial data on federal real estate, and supports decision-making. The registry applies to all federal properties across any federal entities governed by the decree law.
Since its launch in 2022 until the end of August 2024, the Government Treasury Bonds and Islamic Treasury Sukuk programs have achieved remarkable success. The two programs amassed AED 11.2 billion in Treasury bonds and AED 14.9 billion in Islamic Treasury Sukuk, totalling AED 26.1 billion. This success validates the UAE's strategic investment approach and cements its reputation as a global investment leader and one of the most competitive and advanced economies in the world.
Issuing these bonds and sukuk in local currency has significantly contributed to the development of the local currency debt market, diversified funding sources, and revitalised the local financial and banking sector. It has also provided secure investment options for both local and international investors in local currency, bolstered the country’s capacity to meet future financing needs in local currency, and strengthened the local financial market while enhancing the overall investment environment.
The Ministry of Finance has paid utmost attention to advancing financial and economic integration with GCC countries by implementing a wide range of projects and initiatives that foster sustainable growth and joint economic cooperation. It has taken tangible steps to help establish the Customs Union, including technical meetings and the proposal of mechanisms to overcome obstacles.
The Ministry has also contributed to enabling the digital transformation strategy for the GCC Common Market and provided a vision with measurable targets and indicators for the GCC Common Market Workshops.
As a result of these efforts, the total volume of trade between the UAE and GCC countries in 2023 reached AED 292.4 billion, with AED 66.8 billion in imports, AED 80.4 billion in exports, and AED 145.2 billion in re-exports.
Over the past three years, the Ministry of Finance has made significant progress at both regional and international levels through its active participation in various organisations and global initiatives, reflecting the UAE's pivotal role in shaping the global financial and economic landscape.
Among the most important achievements was the UAE's accession to the BRICS group, marking a major milestone in the country's international engagement.
The Ministry has also regularly taken part in G20 meetings, working to enhance international cooperation in areas such as sustainable finance, infrastructure development, financial inclusion, and pandemic response. It contributed 58 case studies to the group's various working groups, further solidifying its involvement.
Additionally, the Ministry participated in the Spring and Annual Meetings of the World Bank Group and the International Monetary Fund, the Annual Meetings of the Islamic Development Bank Group, the Joint Arab Financial Authorities, and the Board of Governors of the European Bank for Reconstruction and Development (EBRD).
The Ministry also organised and hosted key regional and international events, including the Public Finance Forum for Arab Countries as part of the World Government Summit. This included a high-level closed session attended by Arab finance ministers, leaders of international financial organisations, prominent economists, and specialists.
In October 2022, HE Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, was elected Chairman of the Development Committee of the BRICS Ministerial Forum. Furthermore, the BRICS New Development Bank selected a representative from the Ministry of Finance as a board member and Group Director, marking the first UAE and Arab representation on the bank's board of directors.
The UAE has made significant progress in its tax reform agenda in recent years, aligning with international standards on tax transparency and combating harmful practices in cooperation with the G20 and the Organisation for Economic Cooperation and Development (OECD).
These efforts led to removing the UAE from the Dutch list, with the Netherlands commending the UAE's positive role and ongoing cooperation within the framework of the Base Erosion and Profit Shifting (BEPS) project and the implementation of the global minimum tax.
To further strengthen bilateral relations, the Ministry of Finance held six financial dialogues with the Swiss Confederation, the most recent in October 01, 2024, aimed at deepening strategic relations and enhancing cooperation in various developmental, economic, and financial areas of mutual interest.
Additionally, by the end of September 2024, the UAE has bolstered its reputation as a reliable investment destination by concluding 148 agreements to avoid double taxation and 115 agreements to protect and encourage investment by the end of September 2024, demonstrating its commitment to providing a transparent and stable tax environment that supports international investment and safeguards investor rights.
As part of the UAE's efforts to solidify its position as a leading global financial hub, the Ministry of Finance is executing eight transformational projects, announced in 2023 and 2024, covering multiple strategic areas. These aim to enhance the country's competitiveness and support economic growth by making impactful changes across various sectors, delivering tangible results in short periods.
The projects include developing the local debt capital market, creating fiscal policies and legislative tools related to the corporate tax revenue-sharing mechanism, promoting Emirati leadership in the financial sector on international platforms, developing a supply strategy for the federal government, enhancing competitiveness and transparency in climate and environmental spending data, fostering public-private partnerships, introducing a federal corporate and business tax, and implementing an E-billing system.
These projects will directly support the UAE government's “We the UAE 2031” strategy, aiming to fast-track financial goals through focused efforts that create lasting positive impacts on society and key sectors nationwide