Ministry of Finance
Annual Report 2013
MOFUAE
UAEMinistryofFinance
MOFUAE
mofuae
Ministry of Finance
Annual Report 2013
H.H. Sheikh Khalifa bin Zayed Al Nahyan
President of the United Arab Emirates
We are committed to establishing a balanced economic
structure, based on the diversification of income sources.
We are also dedicated to ensuring continued growth amongst
all sectors as well as high incom levels and equality standard of
living for our citizens.
Ministry of Finance
Annual Report 2013
H.H. Sheikh Mohammed bin Rashid
Vice President, Prime Minister and Ruler of Dubai
Our strategy in the next phase focuses primarily on
strengthening the competitiveness of the national
economy, modernising economic laws and legislations,
and strengthening our capacity to implement them.
Ministry of Finance
Annual Report 2013
6
Ministry of Finance 2013
Leading financial sustainability and
competitiveness
In 2013, the global economy witnessed a remarkable improvement which has enabled it
to overcome the direct and negative effects of the financial crisis that were experienced
worldwide in the past few years. The largest testament to that fact was that the global
economy was able to achieve growth rates of almost 2.9%. While researchers and economists,
headed by the International Monetary Fund, closely follow global economic performance
rates, emphasis is being placed on controlling the markets’ ability to continue growing
and on achieving better rates in 2014, reaching the rate of 3.7%.
At the local level, the national economy of the UAE has achieved a significant growth rate of
4.5% during 2013, outperforming many powerful world economies. This can be attributed
to the wise financial and economic policy adopted by the government at various levels,
where the Government Financial Policy Coordination Council played an essential role in
this achievement and laid the foundations for solid growth for the national economy at
higher rates in the coming years.
Based on our belief in the importance of the role played by the strategic partnerships
between the UAE and various countries around the world and international financial
institutions, the Ministry of Finance concluded numerous agreements on the avoidance
of the double taxation and the protection of investments, which amounted to 75 and 46
agreements respectively by the end of 2013.
In 2013, the Ministry of Finance also represented the country in all the Arab, regional
and international economic forums, and hosted a number of conferences and meetings
in the UAE, which included the annual meetings of Arab financial institutions and the
fourth meeting of the Council of Arab Ministers of Finance. The Ministry has also issued
a Consolidated Financial Report of the United Arab Emirates in 2012, which included the
7
most important financial statements that are required, according to the rankings of the
International Monetary Fund and the General Data Dissemination System.
The Ministry of Finance also continued to allocate all the funds to the ministries and
Independent Federal Agencies in order to implement the strategy of the federal government,
as the volume of the general budget of the Union for the financial year 2013 within the
plan of the second session of the budget 2011-2013 reached an amount of AED 44.6
billion, without a deficit.
The Ministry of Finance continues to evaluate the economic and political situations
experienced by the world around us, and the Ministry is working hard to adapt to these
situations and learn more about their direct and indirect effects on the economy. This leads
it to develop financial legislations and policies and to create a competitive environment
which is able to attract more foreign investors to the country. This Ministry played a key role
in strengthening the country’s ability to achieve high ranks in the Global Competitiveness
Report 2013-2014 to assume the 19th position globally, and gain the first place for six of
areas within the report.
There is no doubt that 2013 was a positive year for the Ministry of Finance where it was
able to enhance the UAE’s financial sustainability optimisation level and its competitiveness
regionally and globally. We have been able with God’s support to conquer all of the
challenges that we faced, and to draw our strategic plan for the years 2014-2016, which
will serve as a roadmap to achieve further successes in the future.
H.H. Sheikh Hamdan Bin Rashid Al Maktoum
Deputy Ruler of Dubai and UAE Minister of Finance
Ministry of Finance
Annual Report 2013
8
9
Strategic Plan 2014 - 2016:
Roadmap to achieving sustainability
and enhancing competitiveness
Since its inception, the Ministry of Finance has adopted a consistent approach to improve
its institutional performance and to ensure the achievement of the overall vision of our wise
leadership. The Ministry has always been keen on building and adopting well-established
strategic and operational plans that contribute to developing and strengthening its capacity
to carry out all the tasks entrusted to it professionally as well as allowing the Ministry to
have more achievements and successes in the future.
years. In 2013 its role as a government entity that offers routine services to its partners
and society evolved to it becoming a prominent financial reference locally, regionally and
globally. The shift in its role came from developments in the areas of government financial
resources management and the new and developed systems the Ministry adopted. It has
also become a major contributor to the United Arab Emirates’ impressive achievements
in the Global Competitiveness Reports.
We review the Ministry’s medium-term plans on a regular basis, in order to enhance
them through creating more effective features for future plans. During the year 2013,
we created the third period’s features of the Ministry’s strategic plan for the years 20142016, which primarily focused on moving towards governmental financial sustainability
and the development and harmonisation of fiscal policies in addition to strengthening
competitiveness.
We believe that the coming years will bring on more challenges and opportunities that will
allow us to confirm our pioneer position on a global level in the management of government
resources, the provision of financial e-services and in developing sound fiscal policies,
relying on adopting the best international practices and standards in all areas of finance
and providing sustainable solutions that push forward the UAE’s progress and prosperity.
The Ministry of Finance witnessed many successes and achievements during the past
Statement by H.E. Obaid Humaid Al Tayer,
Minister of State for Financial Affairs
Ministry of Finance
Annual Report 2013
The Ministry of Finance in brief
• Snapshots of MoF’s history
• Vision, Mission and Strategic Goals
• Organisational Structure
• Leadership Council and Committees 14
16
18
19
The Council’s most prominent
achievements for the year 2013
• Overview of the Strategy and its goals
• First Strategic Objective
• Second Strategic Objective
• Third Strategic Objective
• Fourth Strategic Objective
• Fifth Strategic Objective
• Achievements
24
26
30
34
38
46
52
Corporate Excellence
• A Culture of Excellence
• Standards and Achievements
70
71
Activities and Social Initiatives
• Social Responsibilities
• Internal activities and Initiatives
82
84
Under the Spotlight
• Certificates and Awards
• Publications and Releases 88
90
MoF in Photos
• Group of selected photos covering activities in 2013
94
Statement by H.E. Younis Haji Al Khouri,
Undersecretary of the Ministry of Finance
97
The Ministry of Finance
in brief
Ministry of Finance
Annual Report 2013
Snapshots from MoF’s History
1972
14
Establishment of the
Ministry of Finance,
Economy and Industry
under the Federal Law
No.1 for the year 1972
1974
The Ministry was then modified
to the Ministry of Finance and
Industry in 1974
2008
The Ministry once more
amended its specialisation
and was named the Ministry
of Finance
2013
The Ministry continues to
perform according to highest
global standards
The Ministry of Finance is one of the UAE Federal Government’s key ministries, and has
contributed to the UAE’s growth and introduced a culture of excellence on a local, regional
and global level. Under the Federal Law No.1 for the year 1972, the Ministry was first
established and named as the Ministry of Finance, Economy and Industry and was then
modified to the Ministry of Finance and Industry in 1974. In 2008, the Ministry once more
amended its specialisation and assigned its industrial tasks to the Ministry of Economy.
It is in 2008 that the name was modified to Ministry of Finance. The Ministry of Finance
carries its services from its Headquarters in Abu Dhabi and its Dubai premises. The number
of female and male employees was recorded at 293 by the end of 2013.
individuals and the private sector. These services consist of the forecast, collection and
censorship of revenues, the e- Dirham system, financial systems, and supplier services,
responding to financial inquiries as well as services to support Gulf economic integration
initiatives. Furthermore, the Ministry has set as a priority to implement several automated
systems which were developed internally in order to raise the efficiency and effectiveness
of its management capacity. These systems included ‘INJAZ’ for planning and follow ups,
‘ADAEE’ for measuring employees’ performance, the e- suggestions and complaints system,
the operations performance indicator system in addition to ‘ARIS’ which is used for the
documentation of operating systems.
The Ministry of Finance carries out a wide range of activities and tasks such as developing
and coordinating all the UAE’s financial policies, preparing federal accounting rules for
implementation and coordinating follow ups for the general federal budget. The Ministry
also seeks to strengthen the UAE’s financial and economic position and create a competitive
environment on a regional and international level through concluding tax, investment
and economic agreements, cooperating with regional and international organisations and
applying international standards of transparency and exchange of information.
Following its quest to provide the best services and to achieve the highest level of customer
satisfaction, MoF has developed and modernised a set of its electronic systems in line
with UAE Federal Government’s plan. These systems included the automated system for
budget preparation, federal financial system, e-procurement system, government housing
system, government storage system, government consolidated financial procedures
system and common coding system as well as the system to issue tax origin certificates.
The systems’ developments were carried out to reflect the Ministry’s commitment to
conclude memoranda of understanding (MoU) on a local, regional and global level and
in cooperation with its key strategic partners.
MoF offers a variety of specialised services to its partners including government entities,
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Ministry of Finance
Annual Report 2013
Vision, Mission and Strategic goals
Vision
Positioning the Ministry as a global leader in the area of financial resources management
which works towards achieving the sustainable and balanced development of the UAE
Mission
16
17
The best use of the federal government’s resources and working towards growing them
through wise financial management, implementing efficient policies, and promoting
international relations
Strategic Areas
Financial
Performance
Operations
Stakeholders
Education and
Development
• Enhancing the quality of
electronic financial services
and promoting the use of
MoF’s IT programmes
• Enhancing international
financial relations to
develop performance and
financial systems and to
promote investments
• Providing support
services in accordance
with standards of quality,
efficiency and transparency
• Ensuring the stability and
development of the federal
government’s financial
resources
• Ensuring the best use of
the federal government’s
financial resources
• Enhancing transparency
by creating financial
policies and raising
the quality of financial
practices and legislations
Strategic Goals
Team Work
Transparency
Institutional
Loyalty
Professionalism
Creativity
Ministry of Finance
Annual Report 2013
Organisational Structure
Leadership Councils and Committees
Financial and Economic Committee
Minister
18
Minister's Office
Strategic Planning and
Performance Dept.
Internal Auditing Office
Government
Communications Dept.
It is meant to study and coordinate issues related to the general budget of the Federal
Government and for the development of governmental financial performance and economic
relations with various countries and economic blocs. MoF holds the position of Secretariat
for this committee and follows its recommendations and resolutions.
Some of the Council’s most prominent achievements for the year 2013:
• Adopting the general federal budget for the year 2014-2016
• Adopting projects on the federal government revenues development and revenue
forecasts for the year 2014-2016
Minister’s Consultant
The Supreme Committee for Supervising the Development of the
Financial Sector in the UAE
Undersecretary
Corporate Excellence
Department
Undersecretary Office
Support Services
Sector
Financial
Management Sector
International
Financial Relations
Sector
Resoruces and
Budget Sector
Human Resources
Department
Accounting Policies
and Standards
Department
Regional and International
Financial Relations
Department
Budget
Department
Financial Operation
Department
International and
Regional Financial
Organisations
Department
Revenue
Development
Department
Information
Technology
Department
Financial Resources
Department
Legal Affairs
Department
Financial Policies
Coordination
Department
Formed under the chairmanship of H.H. Sheikh Hamdan Bin Rashid Al Maktoum, Deputy
Ruler of Dubai, Minister of Finance. The committee sets rules for the protection and
safety of the UAE’s financial system and proposes laws and legislations necessary for its
development. MoF holds the position of Secretariat for the committee and ensures the
implementation of its directives.
Some of the Council’s most prominent achievements for the year 2013:
• Adopting the new draft federal law on financial services
• Adopting the binary system ‘Twin Peaks’, which is based on the establishment of a state control
mechanism to avoid structural risks in the banking and financial system of the country as carried out by
the Central Bank. The committee also formed a permanent higher committee for continuous supervision
of the financial sector and protection of consumers and customers. This role is now held by the Securities
and Commodities Authority
Ministry’s Senior Leadership Team
Headed by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs the highest
authority in the Ministry. His responsibilities include initiating, discussing and issuing
necessary regulations needed for MoF’s programmes, decisions and strategies.
Some of the Team’s most prominent achievements for the year 2013:
• Adopting a corporate governance methodology at the Ministry of Finance
• Developing the financial reporting system for tablet devices
• Developing the structure of financial policies while identifying the gaps to be filled in the next plan
• Redirecting the Ministry’s sectors main focus on the development of competitiveness indicators and
smart government applications
• Launching a series of brainstorming sessions to achieve the Government’s agenda 2021
• Adopting certificate training programmes for the Ministry’s Emirati employees
• Upgrading the financial system to Oracle R12
• Implementing the e-transferring of expenses through the Central Bank’s system
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Ministry of Finance
Annual Report 2013
MoF’s Strategic Committee
Headed by HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, the committee
is responsible for developing the Ministry’s strategy, its operational plans, monitoring the
implementation of those plans, achieving operational and strategic goals, and monitoring
and publishing the Ministry’s achievements.
20
Some of the Council’s most prominent achievements for the year 2013:
• Preparing and adopting the initiatives and indicators of the Ministry’s operational plan 2013
• Preparing and adopting the Ministry’s strategic plan 2014-2016
• Adopting financial competitiveness indicators to be implemented in 2014-2016
• Adopting government’s capabilities in the financial field in collaboration with the Prime Minister’s
Office
• Implementing the Ministry’s annual report on its 2013 achievements
Government Financial Policy Coordination Council
Headed by HE Younis Haji Al Khouri, Undersecretary of the Ministry of Finance and its
members include representatives from local governments and the UAE Central bank. The
Council works on unifying the government’s financial policies, and collecting data for
financial reports at the state level. MoF holds the position of Secretariat of this Council
and is in charge for implementing its decisions.
Some of the Council’s most prominent achievements for the year 2013:
• Issuing the UAE’s consolidated financial report for the year 2012
• Implementing the project on supporting the fiscal policy coordination in collaboration with the
International Monetary Fund (IMF)
• E-connection of Abu Dhabi and Federal Financial Systems
Executive Committee
Headed by HE Younis Haji Al Khouri, Undersecretary of MoF, it is responsible for tracking
progress of the Ministry’s activities, handling issues pertaining to corporate excellence and
government communications and the development of work performance.
Some of the Council’s most prominent achievements for the year 2013:
• Approving the Ministry’s opportunity to sponsor 15 secondary school Emirati graduates in the ‘Massar’
programme
• Promoting 24 employees from different levels at the Ministry of Finance
• Granting of study time leave and exam performance for 30 employees
21
The Strategy
Ministry of Finance
Annual Report 2013
The Ministry of Finance’s
performance development
24
25
Percentage of initiatives
completed 99.7%
No. of operational indicators
96
MoF’s performance
99.95%
No. of initiatives
54
No. of strategic indicators
20
Total no. of performance
indicators 116
Percentage of initiatives
completed 100%
2011
No. of initiatives
67
No. of operational indicators No. of strategic indicators
Overview of the strategic plan and its objectives
The Ministry of Finance adopted five strategic objectives to achieve its main goals. These
focused on the development and stability of the federal governments’ financial resources,
achieving optimum utilisation of government resources, enhancing transparency and
financial legislation, raising the efficiency of the e-financial services as well as promoting
international financial relations to further develop the financial performance and systems
on a local, regional and global level.
MoF was able to achieve these goals through its outstanding accomplishments for the
year 2013. These achievements will play an important role in supporting the Ministry’s
strategic plan for the year 2014-2016.
2012
112
20
MoF’s performance
Total no. of performance
99.60%
Percentage of initiatives
completed 100%
132
No. of initiatives
43
No. of operational indicators No. of strategic indicators
165
17
MoF’s performance
Total no. of performance
indicators 182
98.89%
2013
Ministry of Finance
Annual Report 2013
Initiatives and operational plan for the first strategic goal for the year 2013
The first strategic objective
Strategic Objective
26
Sponsoring Sectors
Initiative
No.
Ensure the development and stability of the
Federal Government’s financial resources
1
Initiative
Implementing tax
system in the UAE
Resources and Budget Sector
Financial Management Sector
Completing tax and fiscal policy legislation
Contributing to the development and stability of
the government’s resources
Achieved
2
Diversifying and
developing the federal
government’s revenue
resources
Axis
No.
Strategic
12
Achieved
value
operational
100%
100%
2
Closing of the economic model for corporate
tax
operational
100%
100%
3
Percentage of completion of the framework
of the unified VAQT system in the GCC
operational
100%
100%
4
Achieved ratio of the estimated revenue of
the federal government
strategic
100%
102.3%
5
Number of federal entities with modified
service fees
operational
6
12
6
Conducting a study on tax remittances and
submitting it to the Economic and Financial
Committee
operational
100%
0%
7
The total rate of revenue earned from the
total uncollected revenue
operational
10%
17.2%
8
Surplus rate of the independent federal
entities for the fiscal year 2012
operational
100%
94.5%
9
Completing the IATA programme to collect
departure fees and safety and security of
passengers and travel query for early travelers
operational
100%
0
operational
100%
100%
operational
100%
100%
11
Increasing the success ratio of the study of
federal government policy development on
cash management to senior management at
the Ministry
Conducting a study on the development of
best practices with regards to the payment
mechanisms of financial obligations to the
federal government
27
12
Number of federal entities adopting the
zero balance account system for the
implementation of the budget
operational
3
3
13
Number of banks and financial institutions
benefiting from the liquidity support facility
and which have had their reports analysed
operational
12
13
1
Number of Indicators
Operational
Improving the
efficiency of the federal
government’s cash
management
Targeted
value
Preparing the corporate tax policy adopted
by the UAE Committee on establishing the
Ministry’s tax system
3
3
Type of
indicator
1
10
Number of initiatives for the year 2013
Indicator
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
Ministry of Finance
Annual Report 2013
Strategic objectives and projects: the most
prominent achievements
Diversification and further development of the federal
government’s revenue resources
•
•
28 •
•
•
•
•
•
•
•
Revenue collection amounting to AED 45.638 million in 2013, which represents a
10% increase compared to 2012
Improving the service charges for eight federal entities and modernising a number
of them in 2014
12 memorandums on policy proposals and initiatives to diversify and further develop the revenue resources for the UAE’s Cabinet
Modifying the service charges of 12 federal entities
Revenue collection from the overall uncollected revenue with an average exceeding
the target
Surplus collection from independent federal entities for the fiscal year 2012
represented a ratio of 94.5%
Corporate Tax policies in the UAE
Concluding the preparation of corporate tax policies in the UAE in collaboration
with the relevant authorities in 2013
Preparing the corporate tax policies as approved by the committee supervising
the implementation of the tax system at the Ministry
Finalising the economic model of corporate taxes
Completing the legal framework of the VAT system within the GCC
Collection of the financial surpluses for the fiscal year 2012
• Collecting surplus worth AED 662 million for federal independent entities for the
fiscal year 2012, which represents a 95% ratio of the estimated surplus for the year
2013
Increased efficiency of federal government cash management
processes
•
•
Preparing a unified manual which includes the new policy for the federal government’s
cash management system, that will be the reference for all cash management procedures
Conducting a draft study on the development policies of the federal government’s
cash management for senior management at the Ministry
•
•
•
•
•
Preparing a study to outline the best practices for developing the payment
mechanisms of monetary obligations by the federal government
Implementing the zero balance account (ZBA) to set the budget of the targeted
federal authorities
13 banks and financial institutions are benefiting from the liquidity support facilities,
developed based on analysis of their reports
Applying the ZBA system to federal entities
Developing the mechanisms and procedures of the zero balance account (ZBA)
system for federal entities by identifying the requirements and control procedures
Implementing the ZBA system to 16 federal ministries and 5 federal independent
entities, whereby a set of pretrial procedures were carried out on opening bank
accounts and implementing the system on federal entities
Improving the payment mechanisms for monetary obligations
at the level of the federal government
•
•
Concluding a study on the use of modern banking technologies in the banking
sector and in managing daily banking operations
The Ministry of Finance has adopted the operating procedures for the automatic
transfer of monthly salaries to the beneficiary bank without the need to print any
statements onto paper, which ensures accuracy, speed and ease of use to settle
the salary obligations of government entities
Supporting liquidity for banks and financial institutions
benefiting from the support facilities provided by the federal
government to the banking system
•
•
Following up on the agreements signed by the Ministry of Finance with the
beneficiary banks and financial institutions for the financial support of 23 banks
and financial institutions, following the federal government’s initiative to face
the implications of the financial crisis, improve the liquidity situation and stimulate
economic activity
Reviewing and analysing financial data of 13 banks and financial institutions during
2013 to ensure their commitment to the agreements signed
29
Ministry of Finance
Annual Report 2013
Initiatives and operational plan for the second strategic goal for the year 2013
The second strategic objective
Strategic Objective
Initiative
No.
To achieve optimum utilisation of the financial
resources at the federal government
1
30
Sponsoring Sectors
Initiative
To contribute in raising the efficiency in the
implementation of the general federal budget
Number of initiatives for the year 2013
2
Achieved
value
1
Percentage of decrease between the
expenses and revenues of the general federal
budget Strategic
1%
7.7%
2
Percentage of completion of the budget
project plan for the year 2014-2016
operational
100%
100%
3
Preparing the Federal Governments’
consolidated final accounts for the fiscal
year 2012
strategic
100%
100%
4
Number of ministries for the payment and
settlement systems
operational
100%
100%
5
Number of reports to increase the efficiency
for the implementation of the budget
operational
6
6
6
Preparing the federal government’s financial
performance report and submitting it to the
UAE Cabinet
operational
4
4
Achieved
Axis
Targeted
value
Indicator
Preparation of the
federal government’s
budget plan for the
year 2014-2016
Resources and Budget Sector
Financial Management Sector
To simplify the procedures for the
implementation of the general federal budget
Type of
indicator
No.
Raise the efficiency
of the mechanisms
for monitoring the
implementation of the
budget
2
Strategic
1
Operational
5
Number of Indicators
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
31
Ministry of Finance
Annual Report 2013
Strategic objective and projects: the most
prominent achievements
32
The 2014 general federal budget, the development sector
and public benefits
•
•
•
•
•
•
•
•
•
The budget allocated to the social development sector and public benefits amounted
to AED 23.5 billion, which represents 51% of the total budget
The budget allocated to the health care sector amounted to AED 3.7 billion, which
represents 8% of the total budget in order to provide the best quality medical care
for citizens and achieve the vision of our wise leadership in providing high quality
health services
The budget allocated to programmes to ensure social rights and to activate
community integration amounted to approximately AED 3 billion, which represents
a ratio of 6.4% from the total budget
2014 General Federal Budget and Government Affairs Sector
The budget allocated to the government affairs sector amounted to AED 18.5
billion, which represents 40% of the total budget
Allocating a separate budget for programmes readiness and preparedness of
disasters amounted to AED 681 million
Allocating a separate budget for programmes to achieve the highest level of safety which amounted to AED 540 million
Allocating a separate budget for programmes to maintain clear policies to support
the country’s relations on a regional and global level, which amounted to AED 1.7 million
Allocating a separate budget for judicial performance improvement in the country
to provide high quality judicial services, which amounted to AED 713 million
2014 federal general budget and the federal projects sector
• The total costs of the projects implemented by ministries and federal entities
amounted to AED 23.8 billion
• The road projects under execution amounted to AED 4.3 billion
• The federal general budget for the year 2014:
-
11 projects worth AED 1.8 billion for the construction of hospitals, clinics and health centers
-
19 projects worth AED 643 million for the construction of schools
-
24 projects worth USD 2 billion for the establishment of police and civil defense stations, the headquarters for the Department of Naturalisation and Residency and scientific laboratories
-
Six projects worth AED 229 million for culture, youth and community 33
development
-
Four projects worth AED 94 million in the field of water and environmental resources
Developing the unified final account of the federal government
and the reports for the implementation of the general federal
budget
•
•
Developing the content and the format of the unified final accounts of the federal
government to follow international standards in the presentation of the government’s
financial reports
Following up on the results of the implementation of the federal entities’ budgets
which are distributed by COFOG functions and GFS issued by the International
Monetary Fund (IMF)
Developing the follow up mechanisms for the implementation
of the general federal budget and improving the financial
performance
•
•
•
The amount of revenues were estimated at AED 57,616 million and the expenditures
after adjustments amounted to AED 58,741 million, in accordance with federal
law No. (2) for the year 2013 on linking the general federal budget and the budget
of independent parties for the fiscal year 2013
The actual income of ministries amounted to AED 45.999 million in 2013, which
represents an increase of 103% while the expenditures amounted to AED 44,729
million which represents and implementation rate of 98%
The federal government achieved a surplus worth AED 1.27 billion on the
implementation of the general federal budget for the year 2013
Ministry of Finance
Annual Report 2013
Initiatives and operational plan for the third strategic goal for the year 2013
The third strategic objective
Strategic Objective
34
Sponsoring Sectors
Initiative
No.
To enhance transparency through coordination
of fiscal policies and raising the efficiency of
financial legislation and practices
Resources and Budget Sector
Financial Management Sector
Completing the work and procedures for the
consolidation of financial statements and policies
with local governments
Contributing in unifying the policies and
financial data at the state level
Number of initiatives for the year 2013
1
2
Achieved
3
Axis
4
Initiatives
Unifying fiscal policies
at the state level
Improving the
Emirates Gate of GFS
Reports system
Unifying the financial
statement at the
state level
Capacity building
for specialists for the
implementation of
policies, procedures
and financial systems
in federal entities
5
5
Strategic
1
Operational
13
The review and
creation of laws,
policies and studies to
raise the effectiveness
of financial
management
No.
Indicator
Indicator
Type
Targed
values
Achieved
Values
Strategic
15
15
1
Number of fiscal policies that have been coordinated
between the federal government and local governments
2
Number of MoUs signed with local finance department and
relevant entities on the standardisation of fiscal policies
Operational
4
4
3
Percentage of completion for the study on the
implementation of unified fiscal policies at the state level
Operational
100%
100%
4
Number of workshops on Emirates Gate of GFS Reports
system
Operational
4
4
5
Number of reports issued by the system
Operational
4
4
6
Percentage of completion of the report on the UAE’s unified
financial statements
Operational
100%
100%
7
Percentage of completion with regards to publishing the
financial statements in the IMF’s Government Finance
Statistics Yearbook (GFSY) Operational
100%
100%
8
Percentage of completion on the analysis of financial
statements and presenting the results to the UAE Cabinet
Operational
100%
100%
9
Number of training sessions and workshops offered to
federal entities
Operational
14
16
10
Efficiency oriented training for federal entities
Operational
65%
85%
11
Percentage of completion of the updated version of the
consolidated financial procedures manual
operational
100%
100%
12
Percentage of completion of the project on the
management of stock policies and raising it to the UAE
cabinet
Operational
100%
100%
13
Number of studies on unifying laws and policies
Operational
2
2
14
Percentage of completion of the study to determine costs
for military retirees
Operational
100%
100%
Number of Indicators
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
35
Ministry of Finance
Annual Report 2013
Strategic objective and projects: the most
prominent achievements
Project for providing technical assistance for unifying fiscal
policies with the IMF
• Signing a project contract on the provision of technical assistance for unifying fiscal
policies at the state level with the IMF
• Hosting three meetings with Government Financial Policy Coordination Council
• Singing four MoUs with finance departments of the UAE government (Sharjah, Dubai,
Umm Al Quwain and Fujairah)
• Coordinating on 15 fiscal policies between the federal government and local
governments
36 A study on the provision of technical assistance for the
implementation of unified fiscal
•
•
•
•
•
•
•
•
•
•
Policies at the state level has been completed. Emirates Gate for GFS reports
100% e-connection between the federal government and UAE government
Linking the federal financial system for Abu Dhabi Government with the Emirates Gate
of GFS reports
Presenting and sharing experiences with the Emirates Gate of GFS reports with several
entities such as the Saudi Ministry of Finance, Qatari Ministry of Finance and the UAE
Ministry of Economy
Hosting three workshops for entities using with the Emirates Gate of GFS reports
Preparing four reports issued by the Emirates Gate of GFS reports
GFS 2001
Publishing the UAE government’s financial statements for the year 2012 IMF’s
Government Finance Statistics Yearbook (GFSY)
Publishing the quarterly data for the year 2013 in the IMF’s Government Finance Statistics
Yearbook (GFSY)
Completing the unified financial report according to international standards and
requirements and based on the GFSM issued by the IMF
Preparing the meta-data models according to GDDS issued by the IMF
Achievements on unifying financial statements at the state level
• An increase in ratio of covering financial statements for federal entities
• Preparing four annual and quarterly financial reports of the UAE to present it
37
internally and externally
• Creating a database of the UAE’s financial statements to prepare various reports
to serve decision makers at state level
• Building a set of financial reports through the system
• Publishing the UAE’s financial statements in the IMF’s yearbook
• Completing the UAE’s consolidated financial statements report
• Publishing consolidated financial statements in the IMF’s yearbook and local
communication channels
• Completing the analysis of financial statements and raising the results to the UAE
Cabinet
Reviewing and updating financial policies and laws
• Completing the project for stock policies
• Completing an actuarial study to determine costs for military retirees
• Completing a study on the management of stock policies and raising it to the UAE
cabinet
• Completing two studies for unifying laws and policies
Capacity Building for specialists on the implementation
of policies, procedures and financial systems in federal entities
• Completing 28 training sessions for federal entities
• Completing the updated version of the consolidated financial procedures manual
• Achieving an increased rate of 85% for the efficiency of trainings for federal entities
Ministry of Finance
Annual Report 2013
Initiatives and operational plan for the forth strategic goal for the year 2013
The fourth strategic objective
Strategic Objective
38
Sponsoring Sectors
Raise the efficiency of financial e-services and
increase reliance on IT tools
•Resources and Budget Sector
•Financial Management Sector
•Support Services Sector
Completion of financial systems that allow for
integration with federal authorities
Contribute to the provision of innovative electronic
Achieved
Initiative
No.
Initiatives
No.
1
The application of the
federal payroll system
(bayanti)
1
Number of federal entities that applied the
payroll system
Develop the federal
government’s financial
e-system
2
The full application’s percentage of the
financial e-systems at federal entities
2
3
3
4
Strategic
Providing e-payment
for the transformation
of entities that are
part of the UAE’s
e-Government (Al
)Tahadi challenge)
Axis
5
Number of initiatives for the year 2013
Develop the
automation system for
the general budget’s
procedures of the UAE
Indicator’s Type
Targeted
Value
Achieved
Value
Operational
8
8
Strategic
65%
67%
The federal entities’ readiness percentage for
the financial e-system
Operational
100%
100%
4
Number of the federal entities that were
included in the budget’s automation system
Operational
23
23
5
Number of procedures that were developed
and enhanced in the automation system for
the general budget’s procedures
Operational
2
2
6
Revenue collection rate of fees for e-services
in federal agencies
Operational
55%
64.5%
7
Number of federal entities that were
included in the e-payment gate
Operational
6
6
8
Number of new services that were released
for the e-Dirham system
Operational
4
4
9
Completion percentage of marketing the
G2 e-Dirham system and the advertising
campaign for the launch of new services in
the system
Operational
100%
100%
10
Number of POS devices for the collection of
revenue that have been installed at federal
entities and printing affiliate offices
Operational
400
1500
11
Number of banks and investment companies
that were included in the insurance
e-programme
Operational
35
48
12
Number of printing offices and services
centres that were included in installing the
e-Dirham
Operational
150
799
13
Completion percentage of shutting down
the first generation of the e-Dirham
Operational
100%
100%
Develop G2 e-Dirham
system
8
2
Indicators
Number of Indicators
Operational
22
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
39
Ministry of Finance
Annual Report 2013
Initiative
No.
40
6
7
8
Initiatives
Developing technical
support services for
financial systems
Electronic
transformation of MoF’s
services
Developing systems
to protect data and
systems
No.
Indicators
Indicator’s Type
Targeted
Value
Achieved
Value
14
Completion percentage of the automatic
call centre
Operational
100%
100%
15
The ministry got the certificate of
international standard ISO 20000 for
Information Management Systems
Operational
100%
100%
16
The improvement rate in speed to provide
technical support services for the internal
e-services
Operational
5%
5%
17
Completion percentage of corrective action
for the standards of the Department of
Information Technology according to the
Emirates Award for Government Excellence’s
standards
Operational
100%
100%
18
MoF’s departments satisfaction rate of the
services provided by the Department of
Information Technology
Operational
75%
76%
19
The rate of increase in the number of internal
e- systems that are developed
Strategic
60%
60%
20
The percentage of external services that are
converted electronically
Operational
100%
100%
21
The number of services that have been
converted to the services provided by mobile
phones
Operational
3
4
22
The number of systems that have been
reproduced and secured at an alternative
place to face crises
Operational
4
4
23
The proportion of addressing the gaps
concerning information security
Operational
90%
90%
24
Continuity rate of the work of major and
support e-systems
Operational
90%
90%
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
41
Ministry of Finance
Annual Report 2013
Strategic objective and projects: the most
prominent achievements
•
•
•
•
42 •
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
2nd generation e-Dirham system
e-Dirham G2 is being implemented comprehensively
Shutting down e-Dirham G1
Collecting revenues for ministries’ services through e-Dirham system amounted to 64%
54 banks in the UAE have provided automated banking guarantee certificates using
e-Dirham system
The number of POS devices that are currently operating across all related
organisations in the UAE have reached 3189
Activating 64 e-Dirham ATMs, enabling users to fill their cards in addition to
activating NBAD’s ATMs
Equipping more than 60 centres to provide, distribute, sell and recharge e-Dirham cards
Launching four new e-Dirham services
Collecting more than AED 60 million as fees for implementing the e-Dirham system
during 2012 and 2013
Adding 48 banks and investment organisations to the e-security programme
Installing e-Dirham system in 799 printing offices and service centres
The development of the federal financial system
16 ministries and 10 federal entities applied the federal financial system
16 ministries and 28 federal entities applied automated procedures in preparing
the general budget
16 ministries and four federal entities applied the payroll system that is interconnected
with BAYANATI system
A number of federal ministries are now applying the intelligent reporting system
All federal entities and seven local organisations applied the Government Finance
Statistics (GFS) system
Providing many training courses on the rules of preparing the final federal account
for all ministries
Organising training courses on budget implementation for all ministries
Preparing specialised courses on the federal financial system for all ministries and
10 entities
Preparing specialised courses on the federal payroll system for all ministries and
four entities
•
•
•
•
•
•
•
Organising specialised courses on the automation of procedures in preparing the
general budget of the UAE for all ministries and federal entities
Organising specialised courses on the federal government accounts for all ministries
and 10 entities
Launching the new federal financial system application, which will benefit 16
ministries and 12 entities
Concluding the application of the federal payroll system, which will benefit eight
entities annually
Launching analytical and visual reports using G2 intelligent systems, which will
43
benefit all ministries
Launching the automation project of the final account reports to benefit all federal entities
Launching the transformation project of the federal government from cash basis
to accrual basis of accounting, which will benefit all federal entities
Raise financial efficiency in the financial government sector
as well as developing and implementing financial systems in
accordance with the e-government’s standards
•
•
•
•
•
•
•
Concluding the Federal financial system and unifying the financial database of the
Federal government
Completing the application of financial systems to conclude the course on the
budget’s preparation and implementation and to strengthen control over it
Increasing the application of the financial system at federal entities
Simplifying and enhancing the efficiency of financial procedures for the budget’s
preparation and its implementation across the Federal government
Improving the quality of financial data and ensuring its accuracy
Accelerating and facilitating the submission of final accounts
Delivered the required financial reports from third parties on time and in line with
transparency requirements
Provide technical and accounting support for clients in federal
agencies
•
•
•
Organising 120 field visits to 16 ministries and 33 independent entities during the
past two years
Organising 50 training course during 2012 and 2013, which covered financial
procedures and the use of different financial systems
Developing seven work manuals, which included:
Ministry of Finance
Annual Report 2013
-
-
-
-
-
Rules on setting up the final account and the consolidated final account in
the federal government
Monthly and annual closing manual
Transfers procedures manual
E-financial system’s user manual
E-Payroll’s user manual
E-Systems and the automation of the Ministry’s services
44 • Providing e-payment services for the transformation of entities’ services in the
UAE’s e-Government (67%)
• Applying the customer service system to help provide all the available services at
the Ministry within a single system and granting flexibility
• The level of development of internal e-systems has reached 60%
• Developing mobile phone applications for four different services
• Developing the procurement system to serve the UAE’s mission into heading
towards decentralisation, as unifying the adopted procedures and clarifying the
work mechanisms play an important role in supporting the ministries’ individuality
within the framework of integration and coordination of performance
• Developing and supporting the suggestions and complaints to the GCC common
market system in order to promote integration and interdependence between
GCC states in addition to achieving leadership in providing services to GCC nationals
• Developing and supporting the updated version of the “planning completion and
follow up system”, which helps the Ministry in planning and following up on projects
and operational strategic plans automatically
• Developing and supporting the housing system to contribute to providing the
government housing service
• Modifying the Department of Information Technology’s standards in accordance
with the evaluation of the Emirates Award for Distinguished Government
Performance
45
Ministry of Finance
Annual Report 2013
Initiatives and operational plan for the forth strategic goal for the year 2013
The fifth strategic objective
Strategic Objective
46
Strengthen international financial relations to
develop financial performance and systems to
encourage investment growth
Initiative
No.
Initiative
No.
1
1
Applying international
standards of
transparency
and exchange of
information in the area
of ​​taxation
2
Sponsoring Sectors
Regional and International Financial
Relations Sector
Application of international standards in the
financial and taxation field
Contribute to improving the UAE’s rating in
international reports
Achieved
3
Activating the
requirements of
economic integration
among the GCC
Axis
4
Number of initiatives for the year 2013
Concluding agreements
and memorandums
of understanding with
countries worldwide
5
Strategic
2
Operational
15
Number of Indicators
5
Strengthening the
UAE’s role in regional
and international
organisations and
institutions
Providing technical
support services
through development
institutions and
following upon
investments of the
Federal government
Indicator’s
Type
Targeted
Value
Achieved
Value
Percentage of fulfilling the requirements of the first
phase to assess the UAE by the Global Forum on
transparency and exchange of information
Operational
60%
60%
2
The number of events that have been implemented
for the application of standards of transparency and
exchange of information
Operational
1
1
3
Percentage of the number of double taxation
agreements with countries worldwide
Strategic
40%
40%
4
Percentage of the number of agreements to protect and
encourage investment with countries worldwide
Strategic
24%
24%
5
Reduction in the imposed tax rate on the UAE’s
investments abroad
Operational
75%
75%
6
Number of participations to provide grants and foreign
aid
Operational
10
10
7
The number of studies / reports in the area of ​​economic
integration
Operational
3
3
8
The number of proposals submitted by the Ministry
before GCC committees
Operational
2
4
9
Number of organised introductory meetings in the
financial and economic field of the GCC
Operational
3
4
10
Percentage in applying the decisions of the GCC’s
Supreme Council in the economic field
Operational
70%
71%
11
The indicator of the effect of applying the decisions of
the GCC’s Supreme Council on the UAE’s economy
Operational
60%
62%
12
Completion percentage for hosting the annual joint
meetings of Arab financial institutions and the Regular
Meeting of the Council of Arab Finance Ministers
Operational
100%
100%
13
Number of joint activities that are organised with
international organisations and institutions
Operational
2
2
14
Number of MoF’s participations in global activities
Operational
5
5
15
Number of memoranda of understanding signed with
entities in the UAE
Operational
1
1
16
Number of technical support projects through
development institutions that MoF contributed to
providing to the entities in the UAE
Operational
2
2
17
Number of reports that have been released on the
analysis of the results of operational and financial
performance of the companies and institutions that
contribute to the federal government
Operational
3
3
Indicators
Target not achieved (less than 80% of the target)
Target not achieved (80% to 95% of the target)
Target achieved (95% to 120% of the target)
Target exceeded (more than 120% of the target)
47
Ministry of Finance
Annual Report 2013
Strategic objective and projects: the most
prominent achievements
•
•
48 The ratio of signed agreements for the
protection and encouragement of investments
with all countries for the year 2013
Percentage of the remaining countries yet to sign
Agreements to avoid double taxation on income
•
•
The ratio of signed agreements on double
taxation avoidance on income with all
countries for the year 2013
Percentage countries that have
signed the agreements
40%
76%
Percentage countries that have signed the agreements
75 signed agreements to avoid double taxation
The domicile tax certificates and e-value added were automated through the
Ministry’s external website at the beginning of 2013, where the percentage of
people using these services exceeded 50% between 2012 and 2013
Percentage of the remaining
countries yet to sign
24%
Agreements to protect and encourage investments
The number of agreements signed to protect and encourage investments have
reached 46 agreements, bringing the total number of countries that the UAE has
signed agreements with to 24%
The imposed tax on UAE investments abroad has decreased by 75%
Applying international standards of transparency and exchange of
information for tax purposes
60%
• Strengthening the UAE’s relationship with the Organisation for Economic Co operation and Development (OECD), where the UAE has been chosen to be the
regional hub for the MENA region
• Continuing to exchange information on individuals and companies in accordance
with the relevant Cabinet decision
• A training workshop was held under the title International Tax Avoidance and
Proper Use of Tax Treaties
• Held the Sixth Assessor Training Seminar of the Global Forum on Transparency
and Exchange of Information for tax purposes
• Signed five MoUs on transparency and exchange of information with the UAE
Central Bank, Dubai International Financial Centre, Jebel Ali Free Zone, Fujairah
Free Zone and Dubai Multi Commodities Centre
• Initiated the establishment of a special unit for the exchange of information in the
Ministry of Finance in collaboration with the World Bank
• Met the requirements of the first phase of the UAE’s evaluation by the Global Forum on transparency and exchange of information
• Organised an event on the application of transparency and exchange of information
standards
49
Ministry of Finance
Annual Report 2013
50
51
Activate the requirements of economic integration among
the GCC
•
•
•
•
•
•
•
MoF represented the UAE at the GCC Ministerial Council meetings. The meetings
discussed the economic provisions of the agreement between GCC countries,
which provided several proposals on behalf of the UAE to the Council on deepening
the GCC’s joint economic and financial integration
Organising a number of introductory meetings on the Gulf Common Market,
most notably the induction at the University of Sharjah
Organising a number of workshops with the private sector on the GCC’s joint
economic and financial integration
Holding a number of economic studies on the Gulf’s economic integration
MoF provided a number of proposals before GCC’s committees
Applying the resolutions of the GCC’s Supreme Council in the economic field by 70%
The Index of the effect of applying the decisions of the GCC’s Supreme Council on the
UAE’s economy reached 60%
Strengthen the UAE’s role in regional and international
organisations and institutions
• MoF hosted the Annual Meeting of Arab Financial Institutions and the meeting for the
Council of Arab Finance Ministers in April 2013
•
•
•
•
Organising different workshops for different entities in the UAE, in coordination with
the Multilateral Investment Guarantee Agency, the World Bank and the International
Fund for Agricultural Development
Organising workshops for investors in the UAE
Participating in international events such as semi-annual and annual meetings
of the World Bank and International Monetary Fund, OPEC Fund for International
Development, and Islamic Development Bank and the International Fund or
Agricultural Development and others
Concluding a number of memoranda of understanding signed with entities
in the UAE
Provide technical support services through development
institutions and following-up on federal government’s investments
•
•
•
Increasing the number of technical support projects, provided by these institutions
to the entities in the UAE, in addition to providing information, data and training
the UAE citizens in order to benefit relevant entities
Studying and evaluating the operational and financial performance of companies and
institutions that the federal government contributes to, in addition to raising proposals
Collecting profits and payment obligations, in cooperation with the Emirates
Investment Authority
Ministry of Finance
Annual Report 2013
Achievements
52
January
February
• Implementing the UAE Cabinet’s decision on the draft resolution on amending and introducing
the fees for the therapeutic and diagnostic services and amending the fees for health
insurance card for non-citizens
• Implementing the UAE Cabinet’s decision on the fees of certificates attestation (excluding
certificates of origins) and the fees for the attestation of certificates of origin by the Ministry
of Foreign Affairs
• Implementing the UAE Cabinet’s decision on research fees and patents examination fees
• Implementing the UAE Cabinet’s decision regarding the services on the system for renting
private jets by participating ministries in business trips
• Implementing manual for the mechanisms of monthly and annual closing of accounting
periods
• Implementing the 2013 annual training plan booklet for federal entities
• Implementing the study to improve federal financial systems
• Implementing the UAE Cabinet’s decision authorising the Ministry of Finance to sign an
agreement on avoidance of double taxation on income and protecting and encouraging
investments
• Implementing the UAE Cabinet’s decision on signing draft agreements on the avoidance of
double taxation on income with Japan, Libya and Ecuador
• Implementing the UAE Cabinet’s decision on certifying the agreement on avoidance of
double taxation to prevent tax evasion and the protocol thereto with the Republic of Latvia
• Implementing the UAE Cabinet’s decision on certifying the agreement on avoidance of
double taxation to prevent tax evasion and the protocol thereto with the Republic of Panama
• Implementing the UAE Cabinet’s decision to transfer the UAE’s contributions to the capital
of the International Bank for Reconstruction and Development
• Signing an agreement to avoid double taxation on income with the Republic of Serbia
• Signing a memorandum of understanding on the principles of transparency and exchange
of information for tax purposes with the Fujairah Free Zone Authority
• Preparing a report on the impact of tax legislation imposed by Italy on investors in the
country
• Preparing a report about the UAE’s position in the World Trade Organization with regards
to government procurement
• Signing an agreement with the National Transport Authority on collecting fees
• Signing an agreement with Crimson Logic on the e-justice programme fees by the Ministry
of Justice
• Signing an agreement with Zakat Fund to collect donations
• Implementing the UAE Cabinet’s decision on transferring part of the Central Bank’s profit
for the year 2012 to the Ministry of Finance
• Conducting an analytical study on the world economic development prospects in
collaboration with the IMF
• Conducting a study titled ‘UAE ranks lowest globally in money transfer’ in collaboration
with the Central Bank
• Implementing the UAE Cabinet’s decision on university funding services
• Implementing the UAE Cabinet’s decision on the approval of the federal internal auditing
charter
• Signing an agreement with Zakad Fund on the adoption of the second generation of the
e-Dirham system
• Closing the first generation of the e-Dirham system
• Implementing the UAE Cabinet’s decision on signing a draft agreement on the avoidance
of double taxation on income with the Republic of Hungary
• Implementing of the federal decree on the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and capital with the Government of Montenegro
• Implementing of the federal decree on the ratification of the second protocol to amend
the agreement on the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and capital with the Republic of India
• Signing an agreement on mutual encouragement and protection with the Republic of Serbia
• Conducting a study in collaboration with the World Bank on worker’s money transfer around
the world
53
Ministry of Finance
Annual Report 2013
March
54
•
•
•
•
•
•
•
•
•
•
•
Implementing UAE Cabinet’s decision on tax exemptions for material and goods pertaining
to special needs care
Implementing UAE Cabinet’s decision on examination and search fees for technical patents
at the Ministry of Economy
Implementing the UAE Cabinet’s decision on approving the estimated federal government’s
budget for the general federal budget’s plan for the year 2014-2016
Receiving a delegation from the World Bank to review the system of federal government
revenue forecasting adopted by the Ministry of Finance
Signing an memorandum of understanding with the Ministry of Interior on developing civil
defense services
Conducting a study on increasing the capital of joint Arab financial institutions
Implementing the Ministerial Council of Services with regards to the adoption of different
funding for government universities and colleges for the second semester of the academic
year 2012-2013
Visit by a delegation from the Sharjah Police General Directorate to review the e-procurement
system and financial reporting at the Ministry of Finance
Signing an agreement to operate the e-justice programme between the Ministry of Finance
and Crimson logic
Implementing the UAE’s cabinet decision on the Fund’s support for the Deauville partnership
with Arab countries in transition
Signing the final agreement of the avoidance of double taxation on income and protection
of investment with the republic of Benin
55
Ministry of Finance
Annual Report 2013
April
56
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Implementing the UAE Cabinet’s decision on the fees for the sale of reports and geological
and geophysical maps
Implementing the UAE Cabinet’s decision with regards to fees for informations services
Issuing the UAE Cabinet’s decision on Emirates General Transport Services’ transfer of
ownership to Emirates Investment Authority
Signing a memorandum of understanding between the Ministry of Interior and the Ministry
of Finance to develop civil defense services
Visit by a delegation from Ajman Department of Finance to review the zero-based budgeting
system adopted by the federal government
Organising a forum on government purchases in collaboration with the Mohammed bin
Rashid Establishment for SME Development
Receiving a delegation from the National Transport Authority to review the mechanisms
for the collection of the federal government’s revenues
Receiving a delegation from the Minsitry of Interior to review the e-procurement system
and financial reporting
Implementing UAE Cabinet’s decision on approving the agreement on the avoidance of
double taxation on income with the Republic of Serbia
Implementing UAE Cabinet’s decision on approving the agreement on avoidance of double
taxation and the prevention of fiscal evasion with respects to taxes on income and the
protocol thereto with the federal government of Mexico
Implementing the UAE Cabinet’s decision on the ratification of the agreement on mutual
encouragement and protection of investments with the Federal Republic of Russia
Implementing the UAE Cabinet’s decision on the ratification of the agreement on avoidance
of double taxation and prevention of fiscal evasion with respects to taxes on income with
the Republic of Fiji
Implementing the UAE Cabinet’s decision on negotiations with the US Treasury Department
to sign a draft agreement on the US foreign account tax compliance of individuals subjected
to taxed according to the US laws
Signing a final agreement on avoidance of double taxation on income and prevention of
fiscal evasion with respect to taxes on income with the Republic of Hungary
Signing a memorandum of understanding with the National Media Council and the National
Council of Tourism and Antiquities on adopting bank account system
Signing a final agreement on the avoidance of double taxation on income with Libya
57
Ministry of Finance
Annual Report 2013
May
58
• Implementing the UAE Cabinet’s decision on the fees for Health Insurance Claims Management
companies
• Conducting a study on moving the federal government to an accrual basis based on the
directives of the Ministerial Council of Services in order to improve the federal government
performance according with International Public Sector Accounting Standards
• Implementing the Ministerial Council of Services’ decision on handing over the social affairs
premises
• Receiving a delegation from the National Supreme Security Council to review the e-systems
adopted by the Ministry of Finance
• Receiving a delegation from the General Administration of Airport Security by the Dubai
Police General Command to review the INJAZ system for planning and follow ups
• Receiving a Iraqi delegation to review the e-systems adopted by the Ministry of Finance
• Signing a final agreement on avoidance of double taxation and prevention of fiscal evasion
with respect to taxes on income with Japan
• Signing a final agreement on avoidance of double taxation and prevention of fiscal evasion
with respect to taxes on income with Brunei Darussalam
59
Ministry of Finance
Annual Report 2013
60
June
July
• Implementing the Ministerial Council of Services’ decision on establishing federal tax
payment and putting forward a draft of the legislations for the technical committee
• Implementing the UAE Cabinet’s decision on service fees for adopting, registering, recruiting
and training conforming assessment bodies operating in the UAE
• Implementing the UAE Cabinet’s decision on fees for the issuance of UAE certificates for
rough diamonds
• Conducting a comparative study on GCC foreign investment laws
• Launching a draft procedures manual for cash management at a state level
• Visit of ‘Tejari’ to review the e-procurement system
• Receiving a delegation from the Health Authority- Abu Dhabi to review the best practices
with regards to the adoption of the systems
• Visit to the ADPC to review the best practices and solutions with regards to the adoption
of the financial system R12
• Implementing a federal decree on the ratification of an agreement on the avoidance of
double taxation and prevention of fiscal evasion with respect to taxes on capital with
Palestine
• Implementing a federal decree on the ratification of the agreement on avoidance of double
taxation and prevention of fiscal evasion with respect to taxes with the Republic of Fiji
• Implementing a federal decree on the ratification of the agreement on avoidance of double
taxation with the Republic of Serbia
• UAE Cabinet’s decision on renewing the initiative of the Organization for Economic
Cooperation and Development on developing tax treaties for the Middle East
• Implementing the UAE Cabinet’s decision on health card fees and therapeutic and diagnostic
services for non-citizens
• Implementing the UAE Cabinet’s decision on fees on renewing the permits of Hajj and
Umrah
• Conducting a study on the current cash inflows/outflows and the actual cash position
• Publishing the statistical report of the general federal budget for the fiscal year 2013
• Visit of a delegation from the Ministry of Interior to review the e-procurement system
• Receiving a delegation from Emirates Post Group on the ADAEE system
• Receiving a delegation from the Dubai Health Authority to review the financial system
adopted by entities and applying the assessment process for the company Infosys
• Signing 11 memoranda of understanding between the Ministry of Finance and UAE banks
participating in the reception in Washington to document their efforts with regards to the
preparation of the ceremony and clarifying banks’ commitment in increasing contributions
• Conducting a study on ‘Reality and the future of the Gulf Common Market’
• Conducting a study on GCC foreign investment laws
• Conducting a study on the judicial economic system for GCC countries
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Ministry of Finance
Annual Report 2013
August
62
•
•
•
•
•
•
•
•
Preparing a series of data reports for the most important economic indicators
Conducting a study in restructuring for Emirate Real Estate Corporation
Issuing Federal Law No. 6 for the year 2013 on the report for an additional adoption for the
general federal budget and the Federal Regulations for the fiscal year 2013
Implementing the Ministerial Council of Services’ decision on the unified financial and
accounting policies for federal entities
Signing an agreement with the Investment Authority to maintain backups in the Ministry’s
data center
Implementing the statistical report on the Gulf Common Market
Preparing a report on Macroeconomic Dashboard
Preparing a series of data for the most economic indicators
September
• Implementing the Ministerial Council for Services’ decision on the development and the
modification of the fees for the Ministry of Social Affairs
• Implementing the UAE Cabinet’s decision on the introduction of the license fees for the
Federal Authority for Nuclear Regulation
• Implementing the Ministerial Council for Services’ decision on the development and
adjustment of fees for the services provided by the Ministry of Culture, Youth and Community
Development
• Implementing the UAE Cabinet’s decision on the approval of the recommendations of the
Financial and Economic Committee on the amendments to the General Federal Budget for
the financial year
• Visit of a delegation from the Ministry of Economy to familiarise itself with the areas of
coordination of fiscal policies of the Federal Government
• Visit of a delegation from the Ministry of Finance - Qatar to view the most recent electronic
financial systems adopted by MoF
• The extension of the Memorandum of Understanding between the UAE and the Organization
for Economic Co-operation and Development on developing an understanding of the
practical application of the principles of international tax agreements for tax in the region
of the Middle East and North Africa
• Issuing a report on the budget’s contributions in the regional and international organisations
and institutions
• Issuing a report on the financial performance of the operating companies and institutions
in which the federal government contributes
• Issuing a report on the paper of the International Monetary Fund imbalances and growth
in the G20
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Ministry of Finance
Annual Report 2013
64
October
November
• Implementing UAE Cabinet’s decision on developing and modifying the fees of the Ministry
of Social Affairs
• Implementing UAE Cabinet’s decision on licensing fees for the Federal Authority for Nuclear
Regulation
• Implementing UAE Cabinet’s decision on developing and modifying the fees for the Ministry
of Culture, Youth and Community Development services
• Implementing UAE Cabinet’s decision on the adoption of different funding for government
universities and colleges for the second semester of the academic year 2012-2013
• Implementing the federal government’s unified financial procedures manual for the year
2013
• Signing a cooperation agreement between the Ministry of Finance and the Insurance
Commission on adopting the federal financial system
• Implementing UAE Cabinet’s decision calling upon a 50% increase in the fourth plenary
capital of the Islamic Development Bank which is subscribed into by different parties and
is reversible
• Signing an agreement on the avoidance of double taxation and fiscal evasion with respect
to taxes on income with the Republic of Slovenia
• Implementing a report on increasing the subscribed capital of the Arab Investment and
Export Credit Guarantee to maintain the contributions rate
• Report on the increase of non-subscribed capital for the Islamic Development Bank for the
fifth plenary
• Report on the UAE’s current account balance at the IMF
• Implementing Ministerial Council for Services decision on the service fees for the Ministry
of Economy
• Implementing Ministerial Council for Services decision on the service fees for the UAE
Ministry of Environment and Water
• Implementing Ministerial Council for Services decision on the fees for the Ministry of
Foreign Affairs instant services
• Implementing Ministerial Council for Services decision on approving the draft budget plan
for the fiscal year 2014
• Signing a memorandum of understanding with the Sharjah Department of Finance on
strengthening mutual cooperation and strategic partnership between federal and local
governments
• Conducting an initial study on the requirements of the financial sector on financial information
rules
• Signing an agreement with Oracle to provide the required licenses to the Federal government
2014-2016
• UAE Cabinet’s decision in increasing the subscribed capital for the Arab Authority for
Agricultural Investment and Development
• UAE Cabinet’s decision in increasing the subscribed capital for the Arab Fund for Economic
& Social Development
• Signing a memorandum for approval of the restructuring of the functions and operations
of Emirates Real Estate Corporation for the General Secretariat of the UAE Cabinet
• Implementing a user’s system guide for issuing tax domicile and value added certificates
• Issuing a report on the fourth meeting of the Board of Directors of the Arab Investment
and Export Credit Guarantee Corporation
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Ministry of Finance
Annual Report 2013
December
66
• Signing an agreement with the General Authority of Civil Aviation on providing data with
regards to the number of passengers travelling through UAE airports
• Conducting a study on policies for additional budget appropriations
• Signing a memorandum of understand with Umm Al Quwain Department of Finance on
achieving mutual cooperation and strengthening the strategic partnership between federal
and local governments
• Participating in GCC eGovernment and eServices Conference
• Implementing UAE Cabinet’s decision on the Fund’s support for the Deauville partnership
with Arab countries in transition
• Signing a final agreement on protecting and encouraging investment in the Republic of
India
• Amending the protocol for the agreement on avoidance of double taxation with Poland
• Conducting a study to reach approximate equilisation between UAE nationals salaries in
the private sector to the public sector
67
Corporate Excellence
Ministry of Finance
Annual Report 2013
A culture of Excellence
Standards and achievements
Legacy
Results
70
1. Leadership
10%
2. Strategy
10%
1. Leadership Standards
7. Human
Resources
Results
10%
3. Human
Resources
10%
5. Operations
and Services
10%
6. Service and
Clients Results
15%
9. Main
performance
Results
15%
The Ministry of Finance is keen to work as a unified team to form a culture of excellence
and to ensure continuous improvement in the work environment of its offices and with 71
external partners and the larger UAE community. This aim was evident by regional and
international observers.
Key decision and outcomes
The formation of a specialised team to develop the vision, mission and values of the Ministry
4. Resources
and
Partnerships
10%
8. Partners and
Community
Results
10%
Creativity, Learning, Transparency
The Ministry adopts a proactive approach when implementing the criteria of Government
Excellence and when offering its services and evaluating the performance of the tasks
entrusted to it. In fact, the Ministry is committed to creating the necessary conditions to
ensure the efficiency of its operations and to provide its partners with the best possible
services.
The Ministry views the recommendations and reports issued by the organising committee
of the Government Excellence Award as an essential reference in developing its programmes
and offering its services. Furthermore, the Ministry believes in the importance of linking
these recommendations and reports to its operational plan which are discussed in meetings
of its senior management.
The launch of the Ministry’s strategic plan 2014-2016
Adopting an integrated plan for risk assessment
Emirates Gate of GFS reports for staff recommendations
Developing the performance management system to include all job levels at the Ministry
The review, development and adoption of the incentives and rewards programme
Building and developing the Ministry’s organisational structure
Issuing the creativity and innovation methodologies
Payment of services with mobile phones through the e-Dirham system The Ministry’s participation in more than 20 local, regional and international conferences
The Ministry’s leadership participated and headed more than seven financial and economic groups on a
regional and international level
The Ministry’s leadership participated in spreading knowledge through specialised lectures
Ministry of Finance
Annual Report 2013
2. Strategic Policy Standards
3. Human Resources Standards
Building the Ministry’s strategic plan 2014-2016 has highlighted its most prominent
The Ministry is committed to develop and improve the skills and capabilities of its employees
as well as to provide the best opportunities for training and professional development to 73
contribute to the Ministry’s successes.
72 achievements according to the strategic policy standards and the strategy for the year
2013 and was followed by several other successes.
Key achievements of the Ministry on the Strategic
level
The formation of a specialised team to prepare the Ministry’s strategy 2014-2016
Adopting the e-transformation initiative
Developing the ‘green practices’ initiative
Key achievements of the Ministry in the area of
Human Resources
Improving the initiative on the development of creative spirit among the Ministry’s employees
Issuing the institutional innovation and creativity methodologies
Launching the institutional innovative award and its instruction manual
The Ministry received the quality management training system certificate (ISO:10015)
Adopting the initiative to unify fiscal policies within the UAE
Organising workshop with key partners to study their needs and involve them in developing the Ministry’s
strategic plan
The Ministry received the employment performance award from the Federal Authority for Government
Human Resources
The Ministry’s training programmes achieved a 92% success rate
Creating 67 working groups at the level of the Ministry
Distributing more than 500 copies of the manual of the Ministry’s Strategic plan to all concerned parties
Training 40 of the Ministry’s employees on mastering the art of customer service
Capacity building for 10 Emirati internal trainers
Ministry of Finance
Annual Report 2013
4. Key Partnerships and Resources
5. Key operations and services
The Ministry has adopted a clear methodology to manage its relationships with strategic
The Ministry’s periodic review to develop all the processes and services needed for the
implementation of its strategy resulted in improving its performance and maximising the 75
strategic performance indicators.
74 partners and aims to maximise the benefits of these partnerships. This methodology
is divided into five sub-criteria, including partners and suppliers, financial resource
management, property management, management of technical resources as well as
information and knowledge management.
Achieved Successes
Partners and suppliers
Financial Resource management
Sub-category
Signing 15 MoUs at the Ministry’s level
Achieved a 82.74 satisfaction rate with partners
Key achievements of the Ministry in operations and
services
Developing and adopting the financial risks record
Implementing a supportive initiative for property management based on the Ministry’s operational plan
Developing the specific methodology for green practices
Property Management
Adopting a special system to reserve venues
Adopting the latest international practices in the field of
energy conservation
Converting all the Ministry’s vehicles to natural gas
Management of technical resources
Information and Knowledge Management
Improving 85 of the Ministry’s operations
Automation of financial reporting at the Ministry’s level
Implementing an e-system to automatically switch off
computers after end of official working hours
Identifying 201 performance indicators to measure the efficiency of the Ministry’s operations
Improving five services at the Ministry
A 100% shift of services offered at the customer service center to e-services
Holding 18 meetings with a number of the Ministry’s customers
Measuring satisfaction rate of the Ministry’s internal e-services
Providing sophisticated servers to implement and process
applications in an effecient manner
Signing more than 20 agreements to provide high quality services to customers from federal entities
Develop knowledge management methodologies
according to best international practices
Adopting a marketing plan for the e-Dirham system and developing the system
Forming a working group to follow up on ISO 27001
standards for information security management
Adopting a matrix for customers which falls in line with the Emirates Distinguished Government Service
Programme
Ministry of Finance
Annual Report 2013
76
6. Key results for customers service
7. Key Results for Human Resources
Key Customer Service results achieved by the Ministry
Key Human Resources results accomplished by the Ministry
Scale
Targeted
Achieved
Scale
Targeted
2013
General Impression
88.00%
88.04%
Rate of complaints that have been processed
88.00%
91.21%
Transparency in procedures and services provided
88.00%
88.50%
Knowledge on the requirements needed to obtain services
88.00%
89.66%
Equal treatment in customer services
88.00%
98.54%
Updated information on services
88.00%
89.13%
Satisfaction rate on the e-suggestion system
88.00%
90.48%
Ease of use of online services
88.00%
88.31%
Mystery Shopper Results
84.00%
85.00%
77
Achieved
2013
Employee’s satisfaction rate
77%
78%
Employee’s overall impression of the Ministry
77%
93%
The Ministry’s vision and leadership
77%
84%
Work environment and atmosphere at the Ministry
77%
79%
Work interest and challenges
77%
88%
Internal Communication
77%
80%
Ministry’s performance and stability
77%
76%
Ministry of Finance
Annual Report 2013
78
8. Key Results for Partners and Community Efforts
9. Key Performance Indicators
Key results achieved by the Ministry for its partners and the community
The Ministry’s key achievements
Scale
Targeted
Achieved
Scale
79
Targeted
2013
2013
General impression on commitment to the community
84.00%
84.84%
General impression on partnerships
78.00%
82.74%
Percentage of revenue according to the approved budget
100%
100%
Percentage of the strategic performance indicators
Benefits rate of partnerships
Achieved
100%
100%
Percentage reduction in the deficit between expenses and
1.00%
revenues of the federal general budget
1.00%
65.00%
78.00%
78.65%
The extent of cooperation when providing and exchanging
78.00%
information with partners
82.69%
Number of community initiatives
18
22
Percentage of e-system implementation in federal entities
Transparency when dealing with partners and selection criteria
78.00%
82.31%
Number of fiscal policies used in coordinating between the
15
federal government and local government
15
Outcomes of community initiatives
75.00%
77.00%
Percentage reduction in the time of service delivery
16.00%
23.00%
Evaluation of partners’ performance
70.00%
79.00%
The rate of switching to e-services
84.00%
88.00%
65.00%
Ministry of Finance
Annual Report 2013
Social Responsibilities
The Ministry continues to perform its functions and duties in order to serve the community.
On this basis, the Ministry continuously seeks to participate in various community,
humanitarian and environmental activities and initiatives on a local and international
level. The Ministry’s conducted its annual community opinion poll for 2013 and the results
showed that the overall satisfaction for community initiatives was at 84.84%, above the
targeted rate of 84% and an increase of 0.92% above the rate achieved in 2012.
82
83
The below lists the Ministry’s most prominent social
responsibility events for 2013:
Social responsibility activities
Saving and personal budgeting workshop for students from the Fujairah Educational
Zone
Blood donation campaign
Clothes drive for Syrian refugees
Offering 30 vacancies for outstanding national talents at Career UAE 2013
Organising a range of activities and events for all UAE citizens
Organising recreational activities for children of the DHA Thalassemia Center
Celebrating World Heritage Day
Participating in UAE Flag Day
Celebrating the UAE 42nd National Day
Celebrating Earth Hour and adopting the use of environmentally friendly vehicles
Celebrating International Worker’s Day
Visiting nursing homes in Sharjah
Ministry of Finance
Annual Report 2013
Internal activities and initiatives
The Ministry seeks to maintain close ties between employees and to motivate them to
develop their various talents, which is considered as a key component to achieving success
and leading initiatives. The Ministry strives to realise this vision through organising internal
activities such as social meetings, training sessions and workshops which cover a variety
of topics outside the Ministry’s scope of work including:
84
Internal activities and initiatives
Honouring ceremony for basic services employees
The Ministry’s annual forum
Training session on skill development for work teams
Training course on public speaking and presentation skills
Two first aid workshops
Training workshop on occupational health and safety
Food safety awareness lecture
Awareness lecture in collaboration with Dubai police on Al Ameen service
Diabetes awareness lecture
Traffic awareness lecture entitled ‘the risk of speeding’
Community education seminars on family counseling in collaboration with the
Marriage Fund
85
Under the spotlight
Ministry of Finance
Annual Report 2013
Certificates and Awards
The Ministry’s team is commitment to improving the quality of services offered to customers
through agreements with various partners, which have contributed to many successes on
an internal and external level. This is reflected through the awards the Ministry has received.
88
Award
Received from
Abu Dhabi Chamber of Commerce and Industry
Sheikh Khalifa Excellence Award (SKEA) - Silver
Category
Arab e-Government Shield
Creative Design Award
Federal Authority for Human Resources
Masar Application Award
Federal Authority for Human Resources
Employees Performance System Award
Federal Authority for Human Resources
Employee Performance Systems Award
Federal Authority for Human Resources
Application of Employment Contracts Award
89
Ministry of Finance
Annual Report 2013
Global Certificates
Certificates
ISO 31000 International Standard for Risk Management
ISO 26000 International Standard for Social Responsibility
ISO 10002 International Standard for Customer Satisfaction and
Complaints handling
ISO 10015 International Standard for Quality Management
Training
ISO 2000 IT Service Management Systems Certification
90
ISO 14000 Environmental Management System Certification
ISO 27001 Information Security Management System
ISO 9001 Quality MAngement Systems Certification
ISO 18001 Occupational Health and Safety Management System
ISO 22301 International Standard for Business Continuity
Management
Publication and Releases
•
•
•
•
Issuing the Federal Financial System- 12th Issue- First edition
Legal Services Directory 2013
Closing procedures manual
Consolidated financial procedures
91
MoF in Photos
Ministry of Finance
Annual Report 2013
94
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Ministry of Finance
Annual Report 2013
96
Towards Global
Recognition
During the implementation of the strategic plan for the second session from 2011-2013, our
achievements marked a milestone in the history of the Ministry of Finance and paved the
way towards achieving financial sustainability and enhancing the UAE’s global reputation
and status in international forums. Therefore, in the coming years we will focus our efforts
on supporting the budgets of the sectors of health, education, social services, and the
development of financial systems. This is what will contribute in raising the efficiency of
financial management, improve the understanding of the ministries and departments of
the federal fiscal decentralization policy, the limits of accountability, corporate governance
and ensure the highest degree of cooperation with local governments, regional and
international organisations. Furthermore, it will contribute in strengthening the capacity
of citizenship competencies and skills development and conservation in the ministry.
We will also ensure that in the coming period we continue to exert all possible efforts to
achieve the following:
• To be one of the best ministries in the world in the field of the financial management
• To maintain the integrity of the country’s financial system from any risk
• To be one of the best parties in the world in the application of international standards
and policies for the governance of public finances
• To operate in accordance with best international practices in the financial sector
We will also use our ranking in the global competitiveness report for financial areas as our
benchmark to achieve our vision, mission and strategic goals.
Younis Haji Al Khouri
Undersecretary of the Ministry of Finance
97