Building UAE’s financial resilience for country’s sustainable future

Amidst the fluctuating global economy, the UAE Federal Government remains committed to embracing the highest levels of flexibility and financial efficiency to drive sustainable development and meet future developmental and social needs, said Younis Haji Al Khoori, Undersecretary of Ministry of Finance.

Al Khoori added, “Through a budget that aligns with long-term goals and ensures immediate economic stability, the government seeks not only to diversify economic foundations and support investment in human resources but also to promote local industries, bolster small and medium-sized enterprises, stimulate entrepreneurship, and create new job opportunities.”

He further said, “This flexibility undoubtedly allows the government to effectively manage varying circumstances and challenges, adapt continuously, and navigate any arising obstacles. It enhances the government’s capability of addressing financial and economic issues, steering reform efforts towards sustainable and strategic growth that meets both current needs and future aspirations.”

“When developing strategies for national resilience, it’s very necessary to focus on several strategic aspects, including establishing national standards that guarantee the efficiency and effectiveness of government spending and proactive risk disclosure. Additionally, enhancing international partnerships and mutual assistance agreements is another aspect that should be taken into consideration to improve risk identification and mitigation.

Strategies should also focus on developing or enhancing national resilience systems related to capital and operating expenditures and should ensure the availability of necessary infrastructure and essential services. Moreover, they should strengthen integrated governance and coordination among various institutions while also ensuring the measurability of socio-economic returns on investments.”

Al Khoori explained, “In this respect, the UAE attaches utmost attention to promoting the efficiency of public spending to meet developmental and economic objectives and is making every effort to identify priorities for investment projects to ensure the optimal utilisation of the country’s resources. This process necessitates conducting economic feasibility studies for these projects to maximize their returns and, consequently, the growth of the state’s public revenues.”

He added, “The federal budget for 2024–2026 lays down a strategic financial framework for the federal government. It targets the optimal utilization of resources, diversifies sources of government revenue, and maintains tight control over expenditures. The fiscal strategy underpins ongoing economic and social developmental initiatives that impact all who live in or visit the UAE.”

Al Khoori said, “Emphasising the need to improve the efficiency of government spending, the framework seeks to maximise revenues, rationalise public expenditures, and enhance the governance of the revenue and expenditure system. It was designed to ensure more flexible management of the state’s public finances and allow for an accurate assessment of the financial position, which is essential given the exceptional circumstances the global economy is experiencing or might face.”

He elaborated, “As flexibility extends beyond national boundaries, necessitating a global advancement where no country lags in development, it’s imperative to stimulate international trade to foster a more open and competitive global market that supports sustainable development. This requires re-engineering business processes and activities to make them faster and more efficient, reducing trade barriers, adopting digital solutions in these activities, and collaborating with international financial institutions to devise sustainable solutions for debt management. Furthermore, it’s more important than ever to facilitate investments in green technologies and renewable energy through supportive policies that boost clean energy initiatives, in addition to creating an inviting investment environment in key sectors and doubling efforts to attract foreign direct investment, particularly in areas poised for sustainable growth.”

Al Khoori concluded, “To ensure that national resilience  continuously evolves to meet the needs of future generations and aligns with both domestic development goals and global economic trends, ongoing improvements in resilience systems must be prioritized. This means enhancing the efficiency of government spending, strategically allocating financial resources to critical sectors, and fortifying our ability to navigate potential and emergency challenges. Embracing innovative governmental practices and investment strategies will certainly pave the way for a more adaptable and well-organized national framework. By moving beyond fragmented approaches and adopting a holistic view of the economy’s lifecycle, we can foster a national resilience that not only addresses current demands but also positions us to thrive in an ever-evolving global landscape.”