UAE: Sheikh Mohammed reviews financial achievements and initiatives for 2023

“The UAE ranked first globally in 4 international competitiveness indices related to the financial sector, and third in the general government gross debt indicator, within the annual Global Competitiveness Prospectus 2023. This affirms the success of the national financial policies implemented and reflects the significant potential for improvement and sustainable progress. Furthermore, it reflects the promising opportunities offered to financial, economic and investment organizations seeking to benefit from the UAE’s advanced financial ecosystem, driven by a flexible legislative system and advanced digital infrastructure.

“The Ministry of Finance will continue its support to improve economic performance in the next phase, in accordance with the UAE Economic Principles Document. The Document serves as a roadmap that stipulates the characteristics and performance pillars of all federal entities. It includes preparing the legislation, laws, policies and frameworks necessary to protect the stability of the country’s financial systems, ensuring their sustainable development and commitment to high international standards in efficiency and security. This greatly strengthens investor confidence. “The country’s financial systems are enjoying a continuous process of development and modernization, within a framework that consolidates the role of the federal financial system in achieving comprehensive and sustainable development in the UAE.”

The government’s financial policies and efforts introduced in the sector have contributed to the UAE ranking first globally in 4 indicators of international competitiveness. The UAE ranked first globally in the “Public Spending Efficiency” indicator in the Prosperity Index report in 2023. It ranked first in the “balance of government budget to GDP” index in the report of the same indicator for the same year, and ranked first in the “adaptability of government policy” index, in the Global Competitiveness Brochure 2023, and ranked first in the “financial openness” index in the Global Competitiveness Report Travel and Tourism Development 2023, published annually by the World Economic Forum. The United Arab Emirates ranked third globally in the “total general government gross debt” index, in the Global Competitiveness Prospectus 2023.

During the year 2023, the UAE Cabinet approved the issuance of 15 federal laws in the financial sector, 62 regulatory decisions that improve the efficiency and effectiveness of the management of the financial situation and cash flows in the Federal Government, signed 8 international agreements and approved 9 projects and main national financial initiatives.

The important national financial initiatives and projects presented by the Federal Government in 2023 include the plan to sustain the Federal Government Budget, the restructuring of Sukuk (Islamic Bonds), the electronic invoicing project, the update of the Public Debt Strategy of the Federal Government from 2021-2023, restructuring the Federal Government franchise fees for companies operating in the telecommunications sector in the United Arab Emirates, creating a database for real estate assets with a cost of around AED 62 billion, improving development and supply chains in the Federal Government, and the GCC Customs Union (GCCCU) support project.

Regulatory decisions approved by the Cabinet in 2023 included 10 decisions regulating fiscal matters in the UAE, 17 decisions regulating government services and tariffs, as well as 6 decisions on other financial policies.

The UAE government continued to improve the country’s competitiveness and consolidate its international relationship, signing and ratifying 8 different international agreements, including 4 international agreements to encourage and protect investment with the Republic of Côte d’Ivoire, the Republic of Mozambique, Barbados, the Cooperative Republic of Guyana, and 4 international agreements to avoid double taxation and prevent financial evasion related to income taxes with the Republic of Côte d’Ivoire, the Czech Republic, the United Republic of Tanzania and the Cooperative Republic of Guyana. This brings the total number of agreements to avoid double taxation to 147 agreements, and 112 international agreements to promote and protect investment.

The Ministry of Finance has been making preparations for the country to host the annual meeting of the Board of Governors of the European Bank for Reconstruction and Development and the Business Forum in 2026, to consolidate the UAE’s position as an attractive destination and sustainable for foreign direct investment and an important axis in the global investment landscape.

The UAE government successfully completed the measurement of its financial position, applying the accrual basis of accounting, in accordance with the International Public Sector Accounting Standards (IPSAS) standards. The total value of assets reached AED 481.5 billion until the third quarter of the year 2023. The UAE maintained its effective strategic partnerships with organizations in the international community, participated in the Poverty Reduction and Growth Trust Fund (PRGT ) and the IMF Resilience and Sustainability Trust Fund (RST), and contributed financially to the 12th Replenishment of the International Fund for Agricultural Development (IFAD).