The Ministry of Finance (MoF) has released its 2023 yearbook, titled "Leadership in Development and Global Partnerships for Sustainable Finance", highlighting its key achievements, financial statements, national initiatives, and projects accomplished over the year.
The yearbook also details the outcomes of its participation in regional and international events, which resulted in strengthening the UAE’s influential role in shaping the global financial and economic landscape.
Unprecedented Milestones
His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, emphasised that the UAE has successfully established a solid foundation for growth, prioritising sustainability and inclusiveness, something which resulted in significant milestones under the directives of its wise leadership.
Al Hussaini added that the Ministry of Finance has been and will continue to be committed to reinforcing the country’s stature as a global leader for sustainable development and prosperity.
He noted that the Ministry has evolved into a major driver of progress, fuelled by a clear financial strategy designed to optimally leverage all available resources and potentials, support the national strategic objectives, and bolster the state’s competitive infrastructure through advanced and efficient financial methodologies.
His Excellency said: “Adopting strategic financial policies and enhancing investments in sustainable resources have significantly improved our infrastructure and services." Our continuous efforts have significantly promoted the quality of life and societal well-being.”
He noted that 2023 has been a year of unprecedented achievements for the Ministry of Finance, where it has developed several financial policies to bolster the sustainability of financial resources. “We have directed government budgets towards economically vital and developmental sectors, while at the same time strengthening the financial legislative framework and evolving laws to boost the competitiveness of the national economy. We have been and will continue to be driven by a singular objective: promoting the UAE’s status as a premier global financial and business hub.
Al Hussaini added, “All that the Ministry has achieved would not have been possible had it not been for the unwavering support of our wise leadership, which is dedicated to implementing sustainable economic and social growth strategies to enhance prosperity for the citizens and residents of the UAE. We are committed to continuing our cooperation with all sectors and national entities to meet the goals of the national indicators of the "We the UAE 2031" vision, as well as the objectives of the "UAE Centennial 2071." We will dedicate all our efforts to advance the ongoing process of sustainable economic and social development.”
Budget For Vital Projects
In 2023, the Ministry of Finance marked a year of exceptional achievements that aligned closely with its strategic objectives to develop a comprehensive financial system underpinned by innovative policies and programs.
A significant milestone was approving AED 192 billion Federal Budget for 2024-2026 to bolster the economy with vital projects. Concurrently, the Ministry introduced its strategic plan 2023-2026, which focuses on financial empowerment, sustainability, innovation, and forward-looking initiatives.
Enhancing Economic Competitiveness
The yearbook also highlights that 2023 was a successful year for the Ministry’s bond issuance and Islamic Treasury sukuk programs. Of particular significance, two auctions were held under the government treasury bonds program and five under the Islamic Treasury sukuk program. Moreover, a new package of sovereign bonds worth $1.5 billion was launched, significantly advancing the Ministry’s primary goals of establishing a yield curve for the dirham and attracting foreign investments.
Such initiatives not only provided effective financing sources but also validated the state’s strategic investment objectives and policies. As a result, this proactive financial management has promoted the UAE’s status as a top global investment destination and secured its position among the world’s most competitive and advanced economies, especially in the field of Islamic economics.
Legal financial framework
The yearbook also outlined significant achievements in the legislative and legal financial framework of the UAE over the past year, including the issuance of the first law governing partnerships between the federal and private sectors, the first law establishing the general framework for government procurement in the UAE, and new legislation regulating federal government assets both domestically and internationally.
The report showcased the Ministry’s efforts to streamline government spending. In 2023, it issued 151 decisions to enhance the efficiency and foster the sustainability of resources in the federal government, including over 25 regulations for the new corporate tax law. Additionally, 38 legislations were enacted in 2023 concerning the management of government revenues, addressing areas like service fees, debt felief, and state dues settlement.
Diversifying Revenue
The yearbook outlines the Ministry’s steps taken to stimulate and diversify revenues, which led to a significant achievement. The total value of revenues collected from VAT since its implementation in 2018 until the end of the fiscal year 2023 reached AED 159 billion, according to the amounts received in the unified treasury account during 2023. This achievement illustrates the Ministry’s strategic commitment to bolster economic diversification and future readiness by broadening revenue streams, thereby securing the state’s financial sustainability.
Digital Services
Also in 2023, and in a robust push to develop digital financial solutions, the Ministry launched the third phase of the digital procurement platform to enhance the efficiency and transparency of federal government procurement processes, thereby boosting administrative efficiency. Additionally, 2023 marked the incoproration of the "UAE Pass" into all MoF services and systems, aligning with national efforts to enhance the quality of digital life, further digital transformation, and eliminate paper transactions.
Competitiveness Indicators
The yearbook outlined the UAE’s remarkable performance in global competitiveness indicators, securing first place globally in four key areas: lack of waste in government expenditure, government budget balance, GDP according to the Legatum Prosperity Index, adaptability of government policy according to the Yearbook of Competitiveness, and the degree of financial openness as reported by the World Economic Forum’s Tourism and Travel Development report. Additionally, it secured third place globally in the total public government debt index, as detailed in the IMD World Competitiveness.
Successful Participation in International Events
The book explores the UAE’s significant achievements on both regional and international stages, where the Ministry took part in several economic and financial events. It participated in 34 meetings within the financial track of the G20 in India and the Public Finance Forum of Arab countries.
The Ministry also hosted the Board of Directors of the New Development Bank of the BRICS countries, contributed 39 case studies to G20 reports, and engaged in extensive discussions on various topics.
The book also mentions that in 2023, the UAE government continued to boost the nation’s competitiveness and strengthen its international ties by signing and ratifying a number of international agreements. These included agreements on the promotion and protection of investment and other agreements on the avoidance of double taxation and prevention of financial evasion with respect to income taxes. This brought the total number of double taxation agreements to 144 and international agreements for the promotion and protection of investment to 113 by the end of 2023.
The Ministry of Finance has also assumed leading positions in various prestigious international organisations. HE Mohamed Bin Hadi Al Hussaini chaired the Joint Development Committee meeting between the World Bank Group and the International Monetary Fund and led the International Monetary and Financial Committee (IMFC) for the Arab Group during the annual meetings held in October 2023 in Marrakech, Kingdom of Morocco.
Additionally, the Ministry played a significant role at the World Government Summit, hosting the Regional Forum on the global minimum corporate tax to address Base Erosion and Profit Shifting (BEPS) and the Global Anti-Base Erosion Rules (GloBE). It organised a series of events and meetings highlighting the importance of financing climate initiatives to achieve sustainable economic development at COP28.
The book further highlights the Ministry’s internal achievements across various sectors, such as the Accounting Standards Board of the federal government, the Government Financial Policy Coordination Council.
The book outlines notable achievements from various ministry departments, including the Accounting Standards Board, the Government Financial Policy Coordination Council, and the General Budget Committee of the Union. It highlights transformative digital initiatives involving Metaverse and AI technologies, along with five key strategic projects that enhance the UAE’s global standing in digital governance. The book also reflects on the ministry’s adherence to best global practices in personnel development and its proactive efforts to foster creativity, including organising 138 workshops and training programs throughout 2023.
To review the Yearbook 2023 in English, please click on the link below:
https://we.tl/t-tZH538fEk2
To review the Yearbook2023 in Arabic, please click on the link below: https://we.tl/t-uRnACRMNAZ