Ministry of Finance launches four-year plan to support economic growth

Goals of strategic plan 2023-2026 are in line with UAE Centennial objectives

The UAE's economy, the Arab world's second-largest, grew by 3.8 per cent on an annual basis in the first quarter of this year. AP

The Ministry of Finance has launched a four-year plan to help boost growth.

The strategic plan 2023-2026 also focuses on financial empowerment, sustainability, innovation, financial leadership as well as future foresight, the Dubai Media Office, said on Sunday, quoting Sheikh Maktoum bin Mohammed, Deputy Prime Minister, Minister of Finance and First Deputy Ruler of Dubai.

The strategic growth initiative is in line with the objectives of the UAE Centennial Plan 2071.

“We will develop and implement sustainable financial policies to promote economic growth, create a competitive business environment, strengthen international economic relations and build trust and transparency,” Sheikh Maktoum said.

“In a fast-changing world, we will ensure our economy is resilient and agile, ensuring long-term national goals are met.”

The UAE's economy grew by 3.8 per cent on an annual basis in the first quarter of this year, boosted by its strong non-oil sector as it continues to push for diversification and long-term growth.

Gross domestic product in the three months to the end of March increased to Dh418.3 billion ($113.9 billion), from Dh403.3 billion a year ago, Abdulla bin Touq, Minister of Economy, said last week, quoting preliminary estimates from the Federal Centre for Competitiveness and Statistics.

The UAE economy is expected to expand by 3.3 per cent this year and 4.3 per cent next, according to the UAE Central Bank data.

The UAE's GDP grew by 7.9 per cent in 2022, the most in 11 years, to Dh1.62 trillion at constant prices, supported by the non-oil sector.

“From human capital and legislative structures to the local business environment, financial policies, international relations and global partnerships, our plan sets out realistic medium-term goals. It will also empower government enablers to drive implementation of our strategic initiatives,” Sheikh Maktoum said.

“We will prioritise attracting and empowering talent, providing efficient institutional services and AI-enabled digital infrastructure, applying best practices in human resources, leadership, quality standards, institutional excellence, and performance measurement.”

The Ministry of Finance’s four-year plan includes three goals including boosting financial performance through designing a public finance road map, strengthening analytical capabilities, and ensuring sound financial management.

It also includes prioritising fiscal sustainability for an inclusive future through managing public debt and designing balanced tax policies.

The ministry said it will also focus on strengthening national financial resilience through a framework for emergency response and recovery in finance and developing a programme for co-operation with international ministries of finance, according to the statement.

The strategic plan also includes four main goals with periodic tasks. These include developing a sustainable fiscal policy through developing the federal government’s financial planning, strengthening sustainability of public finances and risk management and preparing and reviewing financial laws and policies.

Fostering strong economic growth and a competitive business environment as well as promoting international economic and financial co-operation through promoting international financial interests, utilising the opportunities and advantages of joint Gulf financial and economic integration and developing and strengthening international tax relations are also part of the goals.

Enhancing mechanisms for budget planning and implementation, managing and governing financial data; preparing and managing the federal government’s financial operations and managing the government procurement platform are also part of the goals.

“The Ministry of Finance has maintained its position as a thought leader despite the global economy’s challenges,” Mohamed Al Hussaini, Minister of State for Financial Affairs.

“Our proactivity in financial sustainability management and commitment to capacity building have contributed to introducing a new approach to major financial affairs.”

Last month, the UAE's Ministry of Finance has announced five major projects to improve government financial work aimed at further enhancing future readiness.

They include local supply strategies, transparency in climate data, corporate tax, public-private partnership and an e-billing system.