Mohammed bin Rashid reviews the UAE Government’s financial achievements and initiatives for 2023
Including the issuance of 151 decisions enhancing the efficiency and sustainability of resources in the Federal Government.
5 min
- Maktoum bin Mohammed: The policies, strategies, and programmes implemented, within the federal scope, in the financial sector have provided a great support to all sectors of development in the UAE, and to their development plan.
- Maktoum bin Mohammed: The UAE has been ranked first globally in 4 international indexes of competitiveness related to financial sector, which affirms the success of the implemented national financial policies, and reflects the significant opportunities offered to the finance, economy, and investment organisations practicing in the UAE, where they enjoy a flexible legislative system and advanced digital infrastructure.
- Maktoum bin Mohammed: The Ministry of Finance is continuing in the next phase its support to enhancing economic performance, in line with the UAE Economic Principles Document. This is within a framework that consolidates the role of the federal financial system in achieving comprehensive and sustainable development in the UAE.
Key financial achievements and initiatives in 2023
- The UAE ranked 1st globally in 4 international indexes of competitiveness in financial sector.
- 15 federal laws, 62 regulatory decisions, 9 key national projects and initiatives on financial affairs approved by the Cabinet.
- 10 decisions regulating tax matters, 17 decisions regulating government services, 6 decisions on the federal government’s financial policies.
- 8 international agreements were signed or approved with the Republic of Côte d’Ivoire, Republic of Mozambique, Barbados, Cooperative Republic of Guyana, Czech Republic, and the United Republic of Tanzania.
- 147 agreements to avoid double taxation and 112 agreements to encourage and protect investments were signed until 2023.
- AED481.5 billion is the total asset value scored up to Q3 of 2023.
UAE: 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 outcome included 151 Cabinet decisions related to the financial sector, covering the launch of new policies and initiatives, legislation and laws, as well as the approval of international agreements.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE said: “The policies, strategies, and programmes implemented, within the federal scope, in the financial sector, in line with the vision of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, 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.”
His Highness added: “The UAE was ranked first globally in 4 international indexes of competitiveness related to financial sector, and third in the General Government Gros Debt indicator, within the annual World Competitiveness Booklet 2023. This affirms the success of the implemented national financial policies and reflects the significant potential of sustainable improvement and progress. It, additionally, reflects the promising opportunities offered to the finance, economy, and investment organisations seeking benefit from the advanced financial ecosystem in the UAE which is boosted by a flexible legislative system and an advanced digital infrastructure”.
His Highness said: “The Ministry of Finance will continue in the next phase its support to enhance economic performance, in line with the UAE Economic Principles Document. The Document serves as a road map stipulating the characteristics and pillars of the performance of all federal entities. It features preparing the necessary legislation, laws, policies and frameworks to protect the stability of the country’s financial systems, ensuring its sustainable development and commitment to high international standards in efficiency and safety. This tremendously bolsters the investors’ confidence. The country’s financial systems enjoy a continuous process of development and modernisation, within a framework that consolidates the role of the federal financial system in achieving comprehensive and sustainable development in the UAE.”
The UAE ranked 1st globally in 4 international competitiveness indexes
The government’s financial policies and efforts introduced in the sector have contributed to the UAE winning the top rank globally in 4 international competitiveness indicators. The UAE was ranked first globally in the indicator of “Efficiency of government spending” in the Prosperity Index report in 2023. It was ranked first in the index of “the government budget balance with the GDP” in the report of the same indicator for the same year, and ranked first in the index of “the adaptability of the government policy”, in the World Competitiveness Booklet 2023, and ranked first in the index of “financial openness” in the Travel and Tourism Development Report 2023, published annually by the World Economic Forum. The UAE was ranked third globally in the index of “general government total gross debt”, in the World Competitiveness Booklet 2023.
Legilation, projects and national initiatives to strengthen public finance
During the year 2023, the UAE Cabinet approved the issuance of 15 federal laws in the financial sector, 62 regulatory decisions enhancing the efficiency and effectiveness of managing the financial position 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, Sukuk (Islamic Bonds) restructuring, the project of electronic invoicing, updating the Federal Government Public Debt Strategy of 2021-2023, restructuring the Federal Government franchising fees for the firms operating in the telecommunication sector in the UAE, creating a database for the real estate assets with the cost of around AED62 Billion, enhancing the development and supply chains in the Federal Government, and the project of supporting the GCC Customs Union (GCCCU).
The regulatory decisions approved by the Cabinet in 2023 included 10 decisions regulating tax affairs in the UAE, 17 decisions regulating government services and fees, as well as 6 decisions on other financial policies.
Signing 8 international agreements
The UAE government continued to enhance the country’s competitiveness and consolidate its international relation, signing and ratifying 8 different international agreements, including 4 international agreements on incentivising and protecting investment with the Republic of Côte d’Ivoire, Republic of Mozambique, Barbados, Cooperative Republic of Guyana, and 4 international agreements regarding the avoidance of double taxation and the prevention of financial evasion related to taxes on income with the Republic of Côte d’Ivoire, Czech Republic, the United Republic of Tanzania, the Cooperative Republic of Guyana. This brings the total number of agreements to avoid double taxation to 147 agreements, and 112 international agreements to encourage and protect investment.
Consolidating the strategic partnership with institutions of the international community
The Ministry of Finance has been conducting the necessary 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 and sustainable destination for foreign direct investment, and a major axis on the global investment landscape.
The UAE government successfully completed measuring its financial position, by applying the accrual basis of accounting, in accordance with the standards of the International Public Sector Accounting Standards (IPSAS). The total value of assets reached AED481.5 billion until quarter 3 of the year 2023. The UAE maintained its effective strategic partnerships with organisations of the international community, participated in the Poverty Reduction and Growth Trust (PRGT) and IMF’s Resilience and Sustainability Trust (RST), and financially contributed to the 12th Replenishment of the International Fund for Agricultural Development (IFAD).
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This agreement aims to foster the development of robust partnerships between the communities of both regions.
4 min
The Australian Chamber of Commerce and Industry has recently signed a Memorandum of Understanding (MoU) with the Dubai Chambers, marking a significant step towards enhancing cooperation and strengthening economic and trade relations between Dubai and Australia. This strategic agreement aims to foster the development of robust partnerships between the business communities in both regions.
In today’s interview, we will delve with Mr. Lyall Gorman, Vice President of the Australian Chamber of Commerce and Industry, into the objectives and anticipated impacts of this MoU, explore the key initiatives and projects that will arise from this collaboration, and discuss the potential challenges and strategies for overcoming them.
We will also look into how this agreement aligns with the broader strategic goals of the Australian Chamber of Commerce and Industry and the future of trade relations between Australia and the Middle East.
Can you give us a brief overview of the MoU signed with the Dubai Chamber? What are the main objectives?
The MoU we signed is designed for the two chambers to collaborate for mutual benefit and interest, focusing on business-to-business interactions. We are currently exploring opportunities around delegations, information sharing, trade, commerce, and e-commerce. The main goal is to bring businesses together in a structured manner to share ideas and encourage positive outcomes.
This partnership aims to increase the understanding of each other’s economies, recognize opportunities in each other’s regions, and work together to create mutual benefits. By doing that, we hope to enhance the economic ties between Dubai and Australia, leveraging each other’s strengths to create a more dynamic and prosperous business environment.
How do you see this MoU impacting trade relations between Australia and Dubai in the short and long term?
In the short term, we are expecting to generate a significant increase in awareness. By sharing information, data, and demographic insights, we will gain a better understanding of each other’s economic environments. This will help us identify existing opportunities for collaboration and potential mutual investment. From a trade perspective, we anticipate increased exports from Australia to Dubai and vice versa. This could include areas such as disruptive technology, medical research, education, construction, and agriculture—sectors that are currently emerging and critical.
In the long term, this enhanced understanding and collaboration will allow us to identify and capitalize on more opportunities. It’s about recognizing what’s happening in each other’s regions, understanding potential opportunities, and working together to create economic value. By fostering a deeper economic connection, we aim to create sustainable growth and mutual benefits over time.
What sectors or industries do you see as the primary beneficiaries of this partnership?
There are several mutual opportunities we aim to explore. Dubai has evolved incredibly over the last 20 years, achieving remarkable growth. However, there are still areas where further cooperation can drive growth. Some of the key initiatives will focus on sectors such as AI, digital disruptive technologies, smart technologies, financial services, education, construction, and advanced technologies.
Australia is highly regarded for its building codes and manufacturing capacity, especially in the construction sector. Additionally, I believe food security presents an interesting opportunity. As a major exporter of meat and other food products, Australia can contribute significantly to food security discussions, which is particularly relevant for Dubai.
Education is another area with significant potential for collaboration. By exploring these sectors, we aim to implement projects that not only address current challenges but also pave the way for sustainable development and innovative solutions in both regions.
What challenges do you foresee in the implementation of this MoU, and how do you plan to address them?
The cultural differences can impact how business is conducted, and this requires careful navigation. To address this, we need open and transparent communication, fostering a spirit of collaboration and mutual respect. It’s essential to have a genuine desire to embrace each other’s cultural differences and find common ground.
Another potential challenge is ensuring that both sides fully understand and adapt to each other’s regulatory environments and market dynamics. Dubai has matured significantly into a global business and corporate hub, which helps, but there are still differences to consider.
By prioritizing understanding and respect, and committing to ongoing learning from each other, we can effectively manage these challenges. Working together in a considerate and respectful manner will be crucial in overcoming any hurdles that may arise during the implementation of this MoU.
How does this MoU align with ACCI’s broader strategic goals for international trade and collaboration?
This MoU aligns closely with ACCI’s broader strategic goals by emphasizing the importance of fostering and diversifying economic partnerships on a global basis. The current global geopolitical situation has underscored the need for diversifying our supply chains and business relationships.
From an Australian perspective, the lessons learned during the COVID-19 pandemic and the evolving geopolitical environment have further highlighted the necessity of expanding our economic partnerships.
The Middle East, including the GCC, are regions where Australia already has strong relationships that can be further strengthened. Therefore, by working together, collaborating, and sharing knowledge and forward-thinking ideas, this MoU will help us identify and shape initiatives that add value and align with our strategic goals for international trade and collaboration.
How do you envision the future of trade relations between Australia and the Middle
I believe it will become stronger, more robust, and more regular, all for mutual benefit. There is a genuine willingness between both regions to grow and expand this relationship through a partnership model rather than a transactional one. This approach involves setting short, medium, and long-term goals, fostering a thriving and enduring relationship.
We have already established a strong partnership with Dubai Chambers and maintain a good relationship with the Dubai International Chamber here in Australia, led by Sophia Demetriades Toftdahl. This aligns with our strategic goal of global diversification in business.
Additionally, we recently signed an MoU with the Qatar Chamber and are about to sign with the Abu Dhabi Chamber as well.
Engaging with Saudi Arabia also makes sense, as it is a significantly emerging country. The last few years under new leadership have brought clarity to its economic, political, and social future and a strong passion and drive to become a major player in the region and global stage
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
