His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has reviewed the UAE government’s financial achievements and initiatives for the year 2023. The review revealed that the UAE Cabinet issued 151 decisions related to the financial sector over the year.
The government’s decisions cover the launch of new policies and initiatives, legislations and laws, in addition to the approval of international agreements.
For his part, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, explained that the policies and decisions the UAE’s government implemented in the financial sector have provided a great support to all sectors of development in the UAE, and to their development plan. “This, in turn, supports the objectives related to bolstering the efficiency and sustainability of resources in the federal government,” he added.
Global recognition
The government’s commitment to financial excellence has garnered international recognition. The country ranked first in 4 international indexes of competitiveness related to the financial sector. Moreover, it ranked third on the ‘general government gross debt’ index in the annual World Competitiveness Booklet 2023. These achievements underscore the success of national financial policies and reflect the significant potential for sustainable improvement and progress. Moreover, they reflect the promising opportunities the UAE offers for finance, economy, and investment organizations.
Notably, the UAE ranked first in indexes such as the ‘Efficiency of government spending’ in the Prosperity Index report in 2023. Moreover, it ranked first on ‘the government budget balance with the GDP’ index in the same report. The UAE also ranked first in ‘the adaptability of the government policy’ index, in the World Competitiveness Booklet 2023. Finally, it ranked first on the ‘financial openness’ index in the Travel and Tourism Development Report 2023, published annually by the World Economic Forum.
Legislation and national initiatives
Throughout 2023, the UAE government approved a series of legislative measures and national initiatives to strengthen public finance. This included the issuance of 15 federal laws, 62 regulatory decisions, and the approval of 9 projects and initiatives.
Those decisions aimed at enhancing the efficiency and effectiveness of financial management and cash flows within the federal government. Key initiatives include sustaining the Federal Government Budget, Sukuk restructuring, and electronic invoicing. Moreover, the UAE Cabinet updated the Federal Government Public Debt Strategy of 2021-2023 and created a database for the real estate assets with the cost of around AED62 billion.
The regulatory decisions the government approved in 2023 included 10 decisions regulating tax affairs in the UAE, 17 decisions regulating government services and fees, as well as 6 decisions for other financial policies.
International engagement
The UAE’s government has actively engaged with the international community through the signing and ratification of 8 international agreements. These agreements focus on incentivizing and protecting investment, as well as avoiding double taxation and preventing financial evasion related to taxes on income. This brings the total number of agreements to avoid double taxation to 147, along with 112 international agreements to encourage and protect investment. By fostering strategic partnerships and enhancing cooperation with global partners, the UAE aims to consolidate its position as an attractive destination for foreign direct investment.
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Preparations for the future
Looking ahead, the UAE’s government is actively preparing to host the annual meeting of the board of governors of the European Bank for Reconstruction and Development and the Business Forum in 2026. These initiatives aim to further strengthen the UAE’s position as a global investment hub and a key player in the international financial landscape.
Additionally, the government has successfully transitioned to the accrual basis of accounting, in accordance with international standards, further enhancing transparency and accountability in financial reporting.
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