Post by : Bianca
Haleem
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, presented the UAE Ministry of Finance’s 2025 Annual Report named "Financial Efficiency and Global Impact."
This report details the major accomplishments of the Ministry throughout 2025, illustrating how the UAE reinforced its economy, bolstered financial sustainability, and further solidified its status as a prominent global financial hub.
UAE Pioneers in Sustainable Development
Sheikh Maktoum noted that the UAE stands as a global beacon of sustainable development guided by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai.
The nation’s forward-thinking vision has fostered economic stability, sparked innovation, and set the stage for sustained growth. The Ministry of Finance has been pivotal in crafting fiscal policies that align with the UAE’s aspirations outlined in the "We the UAE 2031" and "UAE Centennial 2071" strategies.
According to Sheikh Maktoum, 2025 proved to be an exceptional year where the UAE adeptly transformed global obstacles into opportunities, concentrating not only on resource management but also on fortifying the financial framework, enhancing legislation, and nurturing digital transformation.
AI Enhances Financial Decision-Making
The Ministry has introduced an advanced system of financial innovation driven by artificial intelligence and digital technologies. These advancements are streamlining decision-making processes, safeguarding national resources, and equipping the economy to tackle future challenges.
Sheikh Maktoum emphasized that these technological innovations empower the UAE to rapidly adapt to international economic fluctuations while upholding one of the most transparent and effective financial systems worldwide.
Emphasis on Financial Sustainability
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, indicated that the Ministry has continued to carry out flexible fiscal policies that enhance economic resilience and optimize government financial management.
In 2025, attention was directed toward modernizing tax laws and financial regulations that nurture economic expansion and refine the UAE's business environment. These undertakings aim to sustain financial stability while fostering investment and innovation.
Federal Budget Reflects Economic Vibrancy
The report disclosed that the UAE's federal budget for 2025 totals AED 71.5 billion, with balanced revenues and expenditures.
Additionally, the government approved the 2026 Federal Budget Plan amounting to AED 92.4 billion, marking a 29 percent increase from the previous year—a testament to confidence in the UAE's economy that supports upcoming developmental initiatives.
The Ministry also expanded non-oil revenues through enhancements in the tax system, improved tax compliance, and intensified international collaboration.
Innovative Tax and Financial Updates
Significant revisions to corporate tax, VAT, and excise tax regulations were highlighted in the report. The Ministry progressed in developing a national e-invoicing system and introduced a new volume-based excise tax model for sweetened drinks.
Additionally, the OECD acknowledged the UAE's Domestic Minimum Top-up Tax under its Transitional Qualified Status framework, further boosting the country’s global competitiveness.
Robust Performance in Debt Markets
The Ministry’s Islamic Treasury Sukuk program saw nine successful auctions in 2025, raising AED 9.9 billion and attracting substantial investor interest.
Furthermore, the UAE launched its Retail Sukuk initiative, enabling citizens and residents to invest directly in government-backed Sukuk with minimum investments starting at AED 4,000.
This initiative was rolled out in collaboration with Abu Dhabi Islamic Bank, Emirates NBD, and Emirates Islamic Bank via their digital banking platforms.
Accelerated Digital Transformation of Government Services
The Ministry continues to prioritize digital transformation, unveiling several tech-driven projects designed to optimize governmental financial operations and enhance decision-making.
A significant initiative was "Virtual Mona," an AI platform aimed at analyzing financial data. Concurrently, the Ministry upgraded federal financial systems and streamlined processes to boost efficiency and enrich customer experiences.
These advancements support the UAE Government's Zero Government Bureaucracy Program, effectively reducing administrative burdens.
Strengthening International Partnerships
Throughout 2025, the Ministry fortified the UAE's global financial stature by engaging in 29 rounds of negotiations with partner nations.
It signed six investment protection agreements and broadened the country's network of double taxation avoidance treaties. The Ministry also took part in international accords concerning tax transparency, financial compliance, and crypto-assets.
Moreover, high-level financial discussions were held with several nations, including Russia, Switzerland, and Azerbaijan.
UAE Climbs Global Competitiveness Rankings
The report illustrated the UAE's ascent to the 16th position globally in the 2025 Government Efficiency Index published by the IMD World Competitiveness Yearbook.
The country sustained robust sovereign credit ratings from leading international agencies:
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Fitch Ratings: AA-
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Moody's: Aa2
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S&P Global Ratings: AA
All ratings carry stable outlooks, demonstrating strong confidence in the UAE’s economic might and financial stewardship.
International Acknowledgment and Awards
In 2025, the Ministry of Finance garnered numerous awards both locally and internationally for excellence in various fields including digital transformation, innovation, cybersecurity, procurement, and risk management.
Notable recognitions included accolades under the UAE Government's Zero Government Bureaucracy Program, three procurement excellence awards from CIPS, and the Innovation for Impact Award for AI in finance received at the AI for Good Summit in Geneva.
Furthermore, the UAE was removed from Brazil's preferential tax regime listing and from the European Union's high-risk third countries list regarding anti-money laundering, underscoring growing global trust in the country’s financial framework.
Investing in Future Generations
The Ministry remains committed to nurturing national talent through specialized programs and training efforts.
A key initiative is the UAE Global Cadres Program, aimed at providing Emirati students and professionals exposure to leading financial institutions globally, fostering training and employment opportunities abroad.
This program encompassed workshops and meetings in countries such as the United States, the United Kingdom, and China.
In closing, the Ministry of Finance reiterated its dedication to financial sustainability, digital innovation, talent development, and fostering international collaborations.
Such initiatives are expected to further solidify the UAE's position as a global leader in finance, economic development, and sustainable progress in the years ahead.
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