UAE Ministry Of Finance Unveils 2023 Yearbook On Sustainable Finance And Global Partnerships

The UAE Ministry of Finance (MoF) has unveiled its 2023 yearbook, "Leadership in Development and Global Partnerships for Sustainable Finance." This publication highlights the ministry's key achievements, financial statements, national initiatives, and projects completed over the year. It also details the outcomes of its participation in regional and international events, which have bolstered the UAE's role in shaping the global financial and economic landscape.

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. This approach has resulted in significant milestones under the directives of its wise leadership. He noted that 2023 was a year of unprecedented achievements for the Ministry of Finance, where it developed several financial policies to bolster the sustainability of financial resources.

Al Hussaini stated, "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 added 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.

The yearbook highlighted that 2023 was a successful year for the ministry's bond issuance and Islamic Treasury Sukuk programmes. Two auctions were held under the government treasury bonds programme and five under the Islamic Treasury Sukuk programme. Additionally, a new package of sovereign bonds worth $1.5 billion was launched to establish a yield curve for the dirham and attract foreign investments.

The report showcased efforts to streamline government spending. In 2023, it issued 151 decisions to enhance efficiency and foster resource sustainability in the federal government. This included over 25 regulations for the new corporate tax law. Additionally, 38 legislations were enacted concerning government revenue management, addressing areas like service fees, debt relief, and state dues settlement.

Global Competitiveness

The UAE's remarkable performance in global competitiveness indicators was also outlined in the yearbook. The country secured first place globally in four key areas: lack of waste in government expenditure, government budget balance according to GDP (Legatum Prosperity Index), adaptability of government policy (Yearbook of Competitiveness), and degree of financial openness (World Economic Forum's Tourism and Travel Development report).

Additionally, it secured third place globally in total public government debt index as detailed in IMD World Competitiveness. The book explores significant achievements on both regional and international stages where the ministry took part in several economic and financial events.

International Engagements

The ministry participated in 34 meetings within the G20 financial track in India and attended the Public Finance Forum of Arab countries. It hosted the Board of Directors of New Development Bank (BRICS countries), contributed 39 case studies to G20 reports, and engaged extensively on various topics.

In 2023, agreements on investment promotion/protection were signed along with double taxation avoidance agreements. By end-2023, there were 144 double taxation agreements and 113 investment promotion/protection agreements.

Digital Transformation

The ministry launched phase three of its digital procurement platform to enhance efficiency/transparency in federal procurement processes. Additionally, "UAE Pass" was incorporated into all MoF services/systems aligning with national efforts towards digital transformation.

The book highlighted internal achievements across sectors like Accounting Standards Board/federal government Financial Policy Coordination Council. Notable digital initiatives involving Metaverse/AI technologies were also mentioned along with five strategic projects enhancing UAE's global standing in digital governance.

Commitment to Sustainable Development

"All that the ministry has achieved would not have been possible had it not been for unwavering support from our wise leadership," said Al Hussaini. He emphasised dedication towards implementing sustainable economic/social growth strategies enhancing prosperity for UAE citizens/residents while continuing cooperation with all sectors/national entities meeting goals set by 'We The UAE 2031' vision/objectives 'UAE Centennial 2071'.

The Ministry played a significant role at World Government Summit hosting Regional Forum on global minimum corporate tax addressing Base Erosion/Profit Shifting (BEPS) & Global Anti-Base Erosion Rules (GloBE). Events/meetings highlighting importance financing climate initiatives achieving sustainable economic development at COP28 were organised too.

A significant milestone was approving AED192 billion Federal Budget for 2024-2026 bolstering economy with vital projects while introducing strategic plan focusing on financial empowerment/sustainability/innovation/forward-looking initiatives.

Total VAT revenue collected since implementation till end-2023 reached AED159 billion illustrating commitment towards economic diversification/future readiness broadening revenue streams securing state's financial sustainability.

Al Hussaini chaired Joint Development Committee meeting between World Bank Group & International Monetary Fund led International Monetary/Financial Committee (IMFC) Arab Group during annual meetings held October-2023 Marrakech Morocco further showcasing leadership roles assumed by Ministry various prestigious international organisations.

With inputs from WAM