Post by : Badri Ariffin

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, presented the UAE Ministry of Finance’s 2025 Annual Report dubbed "Financial Efficiency and Global Impact."

This document emphasizes the notable achievements during 2025, underscoring the UAE's commitment to bolstering its economy, achieving financial sustainability, and reinforcing its status as a premier global financial center.

UAE's Leader in Sustainable Development

Sheikh Maktoum remarked that the UAE stands as a global model for sustainable progress, under the stewardship of President Sheikh Mohamed bin Zayed Al Nahyan and Vice President Sheikh Mohammed bin Rashid Al Maktoum.

He highlighted that the country’s visionary approach fosters economic stability, drives innovation, and supports long-term growth. The Ministry of Finance is vital in crafting fiscal policies aligned with the UAE's future goals through the "We the UAE 2031" and "UAE Centennial 2071" strategies.

2025 was a transformative year, where the UAE adeptly turned global challenges into opportunities. The Ministry concentrated not just on resource management, but also on fortifying the financial system, enhancing legislation, and advocating for digital transformation.

Leveraging AI for Financial Decisions

The Ministry has implemented an advanced system for financial innovation incorporating artificial intelligence and digital technologies, aimed at enriching decision-making, safeguarding national resources, and equipping the economy for future obstacles.

Sheikh Maktoum emphasized that these advancements bolster the UAE's capacity to swiftly adapt to global economic shifts, maintaining one of the world’s most transparent and efficient financial frameworks.

Commitment to Financial Sustainability

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, reiterated the Ministry's ongoing efforts to execute adaptable fiscal policies that bolster economic resilience and government finance management.

Throughout 2025, the Ministry emphasized modernizing taxation laws and fiscal regulations to propel economic advancement and fortify the UAE's investment-friendly landscape—maintaining financial stability while fostering investment and innovation.

Robust Federal Budget Indicating Economic Strength

The report disclosed that the UAE’s federal budget for 2025 reached AED 71.5 billion, achieving a balance between revenues and expenditures.

Furthermore, the 2026 Federal Budget Plan has been approved at AED 92.4 billion, reflecting a 29 percent rise compared to the prior year, showcasing confidence in the UAE's economy and backing future developmental initiatives.

Efforts to boost non-oil revenues saw improvements through enhanced tax systems, higher compliance rates, and greater international collaboration.

Modern Tax and Financial Adjustments

Significant updates to corporate tax, VAT, and excise tax regulations were highlighted in the report. The Ministry also advanced the national e-invoicing system and introduced a new volume-based excise tax model for sweetened beverages.

A noteworthy achievement was the Organisation for Economic Co-operation and Development (OECD) recognizing the UAE's Domestic Minimum Top-up Tax within its Transitional Qualified Status framework, further enhancing global competitiveness.

Strong Outcomes in Debt Markets

In 2025, the Ministry’s Islamic Treasury Sukuk program successfully executed nine auctions, raising AED 9.9 billion amid robust investor interest.

Additionally, the UAE’s new Retail Sukuk initiative enables citizens and residents to invest directly in government-backed Sukuk products, with minimum investments starting from AED 4,000.

This initiative, introduced with Abu Dhabi Islamic Bank, Emirates NBD, and Emirates Islamic Bank, is accessible via their digital banking platforms.

Digital Transformation Enhances Government Services

The Ministry’s commitment to digital transformation saw the launch of numerous tech-driven projects focused on elevating financial operations and decision-making.

A standout project was "Virtual Mona," an AI platform for financial data analysis, along with upgrades to federal financial systems aimed at improving operational efficiency and customer satisfaction.

These initiatives are integral to the UAE Government's Zero Government Bureaucracy Program, aiming to alleviate administrative burdens.

Strengthening International Collaborations

The Ministry advanced the UAE's global financial presence, engaging in 29 negotiation rounds with partner nations throughout 2025.

Signing six investment protection agreements and broadening the country's double taxation avoidance network were key achievements, along with participating in international accords on tax transparency, financial compliance, and crypto-assets.

Moreover, the UAE conducted high-level financial discussions with countries like Russia, Switzerland, and Azerbaijan.

UAE's Enhanced Global Competitiveness

The report noted the UAE’s advancement to 16th in the 2025 Government Efficiency Index, highlighted in the IMD World Competitiveness Yearbook.

The country solidified strong sovereign credit ratings from prominent international agencies:

• Fitch Ratings: AA-

• Moody's: Aa2

• S&P Global Ratings: AA

All are marked with stable outlooks, signifying confidence in the UAE’s economic robustness and financial governance.

International Accolades and Recognition

In 2025, the Ministry of Finance gained recognition through various local, regional, and international awards for outstanding achievements in digital innovation, cybersecurity, procurement, and risk management.

Notable awards encompassed those under the UAE Government's Zero Government Bureaucracy Program, alongside three awards for procurement excellence from the Chartered Institute of Procurement & Supply (CIPS), and the Innovation for Impact Award for AI applications at the AI for Good Summit in Geneva.

Additionally, the UAE was removed from Brazil's preferential tax list and the EU's list of high-risk third countries regarding money laundering, reflecting increasing international trust in its financial system.

Fostering Future Talent

The Ministry continued its commitment to nurturing national talent through targeted programs and training initiatives.

One key initiative was the UAE Global Cadres Program, aimed at introducing Emirati students and professionals to global financial institutions while creating opportunities for training and jobs overseas.

This initiative involved workshops and meetings across countries such as the United States, the United Kingdom, and China.

The Ministry wrapped up its report by reiterating its dedication to financial sustainability, digital innovation, talent nurturing, and fostering international partnerships, aiming to further cement the UAE’s position as a global finance leader in economic development and sustainable growth in the future.

#Dubai News #UAE News #World Update #Global Updates