Tenth edition

United Arab Emirates 

MoF 

Ministry of Finance 

Index 

MoF e-Newsletter 10 th Edition January 2013

MoF e-Newsletter 10 th Edition January 2013 

Content 

Introduction 

03 

04 

08 

12 

22 

24 

30 

31 

Introduction 

Main Article 

Interview 

MoF News 

Field Visits 

Workshops and Training 

Social Responsibilities 

Employees’ Contributions 

The Ministry of Finance (MoF) is pleased to present the 10th Edition of MoF e-Newsletter, which provides 

comprehensive information on the latest developments related to the various events and activities organised 

and sponsored by the Ministry. 

The 10th edition places special focus on MoF’s initiatives for the 41st National Day of the UAE,the Ministry’s 

participation in the annual meetings of the International Monetary Fund and World Bank Group in Tokyo, 

in addition to HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs, being awarded the title of 

the Best Finance Minister in the Middle East and North Africa in 2012. The 10th edition also sheds light 

on the Ministry’s organisation of the reception of national and world banks in Tokyo. 

The newsletter’s team also conducted an interview with HE Younis Haji Al Khouri, Undersecretary of 

the Ministry of Finance, which focused on MoF’s most important achievements in 2012, including the 

commencement of the preparation of the Strategic Plan of the Ministry 2014-2016. 

The 10th edition includes the quarterly report on the financial performance of the implementation of 

the general budget of the Union during the third quarter of 2012 financial year. It also addresses MoF’s 

participation in GITEX Technology Week 2012, during which it offered its latest technologies and electronic 

services. In addition, the newsletter reviews the most prominent projects the Ministry participated in or 

organised during the last period whether financial or in terms of field visits. 

Moreover, the e-newsletter includes the usual sections that were shared in previous issues i.e. the Ministry 

of Finance news, workshops and training courses held, in addition to CSR activities undertaken by the 

Ministry and its support for various community organisations and bodies. 

In this edition, the Employee’s Initiatives clarify a number of fundamental concepts in the field of corporate 

governance submitted by a staff member of the Ministry which in turn reflects the interest and willingness 

of the staff to enhance the communication within the Ministry’s community. 

2 

In conclusion, we hope that the 10th edition of MoF e-Newsletter interests our readers and reflects 

positively on them. 


3


Main Article 

MoF Celebrates 

the UAE 

41st National Day 

“Spirit of the Union” 

4 

In line with the UAE’s 41st National 

Day, the Ministry of Finance (MoF) 

hosted celebrations at the Ministry’s 

headquarters in Abu Dhabi and 

Dubai. The celebrations were 

attended by HE Obaid Humaid Al 

Tayer, Minister of State for Financial 

Affairs, HE Younis Haji Al Khouri, 

Undersecretary of MoF, assistant 

undersecretaries and a number of 

the Ministry’s staff, in addition to 

students of Ajnadeen Schools in Abu 

Dhabi and Al Saada Girls’ School 

in Dubai. 

On this occasion, His Highness 

Sheikh Hamdan bin Rashid 

Al Maktoum, Deputy Ruler of 

Dubai, UAE Minister of Finance 

and Industry, extended his 

congratulations to His Highness 

Sheikh Khalifa bin Zayed Al 

Nahyan, President of the UAE, and 

His Highness Sheikh Mohammed 

bin Rashid Al Maktoum, Vice 

President and Prime Minister of 

the UAE, Ruler of Dubai, Their 

Highnesses Members of the 

Supreme Council, Rulers of the 

Emirates, and His Highness Sheikh 

Mohammed bin Zayed Al Nahyan, 

Crown Prince of Abu Dhabi and 

Deputy Supreme Commander of 

the UAE Armed Forces. 

In line with the initiative of His 

Highness Sheikh Mohammed bin 

Rashid Al Maktoum, UAE Vice 

President, Prime Minister and Ruler 

of Dubai, HE Obaid Humaid Al 

Tayer, Minister of State for Financial 

Affairs, and HE Younis Haji Khouri, 

Undersecretary of the Ministry of 

Finance (MoF), planted a Union 

Tree in front of the Ministry’s 

headquarters in Abu Dhabi, in 

the presence of Their Excellencies 

Assistant Undersecretary of MoF, 

and Directors of Departments and 

employees. 

The event also included celebrations 

supporting spreading peace in the 

UAE, as well as performances 

by local bands. In addition, four 

employees who completed 41 years 

of service in the Ministry were 

honored. Furthermore, a dialogue 

session with the audience was held 

in order to strengthen the spirit 

of the Union among people; the 

Union that was established by the 

late His Highness Sheikh Zayed bin 

Sultan Al Nahyan, the late Sheikh 

Rashid bin Saeed Al Maktoum, 

and Their Highnesses Supreme 

Council Members and Rulers of 

the Emirates. 

5


Main Article 

UAE Participates in Annual 

Meetings of the International 

Monetary Fund and World 

Bank in Tokyo 

at IMF’s International Monetary 

and Financial Committee, which 

is the highest committee in the 

International Monetary Fund. 

On the Sidelines of the Meetings 

In order to discuss economic 

developments in countries in the 

region and around the world, the 

UAE, represented by the Ministry 

of Finance, participated in G-20 

meetings in order to stimulate joint 

economic cooperation through the 

initiatives and proposals suggested 

by the UAE, as well as in meetings 

of the IMF and the World Bank. 

Competitiveness Report 2012 issued 

by the International Institute for 

Management Development (IMD) 

in Switzerland. The UAE surpassed 

about 140 countries around the 

world, including the United 

Kingdom, Japan, France and China, 

in several factors most notably the 

government’s efforts in raising 

the efficiency of its social security 

and pensions policy for retired 

citizens, as well as the efficiency of 

the government’s budget in terms 

of wise management of surpluses 

and spending 

Arab Emirates and was attended 

by HE Obaid Humaid Al Tayer, 

Minister of State for Financial 

Affairs, HE Sultan Nasser Al 

Suwaidi, Governor of the Central 

Bank of the UAE, HE Younis Haji 

Al Khouri, Undersecretary of MoF, 

HE Khalid Ali Al Bustani, Assistant 

Undersecretary of International 

Financial Relations Sector at MoF 

and HE Saeed Abdullah Al Hamez, 

Senior Executive Director, Banking 

Supervision and Examination. 

The Ministry of Finance The Annual Meetings of the IMF 

participates in the meetings and the World Bank Group each 

The UAE participated in the annual year bring together the International 

The ceremony witnessed the 

meetings of the International Monetary Fund, World Bank, 

participation of many ministers, 

Monetary Fund (IMF) and World makers of fiscal and monetary 

towards implementing the directives Reception for the National governors and senior officials of 

Bank group, which were held in policies and the private sector in Honoring HE Al Tayer 

of the UAE’s wise leadership to send Banks in Tokyo 

international banks, institutions 

Tokyo in mid-October 2012. HE addition to academics to discuss HE Obaid Humaid Al Tayer, 

out around AED 50 billion through As part of its commitment to and organisations, along with 

Obaid Humaid Al Tayer, Minister issues of global concern, including Mister of State for Financial Affairs, 

MoF on several batches in order to continue to support and strengthen representatives from the sponsoring 

of State for Financial Affairs, led the world economic outlook, received the Finance Minister of 

increase the proportion of liquidity the role of the banking sector in banks i.e. Emirates NBD, Abu 

the UAE delegation which included poverty eradication and economic the Year Middle East and North 

at local banks. 

the UAE, and in cooperation with Dhabi Commercial Bank (ADCB), 

HE Sultan bin Nasser Al Suwaidi, development. The meetings Africa for 2012 award by Emerging 

the Central Bank of the UAE, the First Gulf Bank (FGB), Dubai 

the Governor of the UAE Central also include seminars, regional Markets Magazine at the sidelines 

HE Al Tayer’s achievements played Ministry of Finance (MoF) held a Islamic Bank (DIB), Abu Dhabi 

Bank, HE Younis Haji Al Khouri, briefings, press conferences, and of the annual meetings of the 

an important role in propelling the reception for the national banks Islamic Bank (ADIB), Union 

Undersecretary of the Ministry many other events focused on International Monetary Fund and 

UAE to occupy the first position in Tokyo on the sidelines of the National Bank (UNB), Commercial 

of Finance, HE Khalid Ali Al the global economy, international World Bank Group that were held 

globally in the field of efficient annual meetings of the International Bank of Dubai (CBD), Al Hilal 

Bustani, Assistant Undersecretary of development, and the global in Tokyo. HE Al Tayer contributed 

government fiscal policy along with Monetary Fund and the World Bank Bank, National Bank of Fujairah 

International Financial, in addition financial system. HE Al Tayer in facing all the economic challenges 

being the seventh in the efficiency for this year. The reception aimed (NBF) and Investment Bank in 

to other experts from MoF and the chaired the event and presented the met by the UAE during the global 

of its public sector financial towards promoting the financial addition to representatives from the 

UAE Central Bank. 

opening speech at the Arab Group financial crisis, where he pushed 

management according to the Global and banking sector in the United Dubai Economic Council (DEC). 

6 

7


Interview 

Interview with HE 

Younis Haji Al Khouri, 

Undersecretary of the 


8 

How does your Excellency 

view the achievements of the 

Ministry of Finance at the level 

of strategic planning over the 

past two years What are your 

expectations for the next plan 

The Ministry of Finance managed 

to rank in the first place globally in 

the areas of efficient government 

spending and the efficiency of 

government fiscal policy through 

its commitment to the terms of 

its Strategic Plan 2011-2013, 

Phase II. It also managed to rank 

seventh in the world in the field 

of financial management in the 

government sector. The Ministry 

had completed 30 projects at the 

level of the federal government 

and more than 110 projects at the 

level of local governments in the 

United Arab Emirates in general 

which helped raise the performance 

indicators from 2010 until 2012 to 

reach a 99% rate. 

The terms of the new Strategic Plan 

will ensure the Ministry of Finance’s 

ability to focus on its core functions 

while maintaining balance between 

each of the main objectives. The 

Ministry will also support achieving 

a clearer link of the strategic 

objectives through key indicators 

of operations approved by it for the 

Department of Financial Resources 

which achieves sustainable and 

balanced development. 

Why has the Ministry started 

developing its Strategic Plan 

2014-2016 this year despite 

the fact that the current plan 

will expire at the end of 2013 

The reason behind starting with 

the preparation of the Ministry’s 

Strategy 2014-2016 for the third 

session lies in the link between 

the strategy and the federal 

government’s general budget of 

9


10 

Interview 

the UAE, keeping in mind that 

the output results will be taken 

into account when developing 

the Strategic Plan of the Ministry. 

Also, the Ministry will begin its 

preparation of the operational plan 

of 2014 in mid-2013. 

Can you shed more light on 

the subject of zero-budgeting 

How does it achieve the strategic 

objectives of the Ministry in 

the current plan 

Based on the Standard Classification 

of the Organization for Economic 

Cooperation and Development 

(OECD); the zero-based 

budgeting system is one of the 

best governmental practices in 

the field of public finance and the 

preparation of the general budget 

in the federal government. The 

ministries and federal authorities 

prepare their budget plans according 

to the present system through the 

definition of activities aimed at 

achieving the strategic objectives, 

and calculating the cost through 

the use of national and international 

standards in order to raise efficiency 

levels and achieve the best positive 

results in the community against 

government spending. The fully 

efficient application of the zerobased 

budgeting plan is based on 

three main stages: 

• Determining the cost accurately 

in the programme structure 

• Determining the cost by 

comparing it to the relevant 

internal and external standards 

• Determining priorities within the 

structure of the programme 

The Ministry’s aim of applying 

the principles of zero-based 

budgeting is to recalculate the cost 

of the activities undertaken by the 

government from beginning until 

the true cost required to perform 

these activities is determined, 

away from spending unnecessarily 

and in a manner that allows for 

comparisons of the cost of similar 

services with various government 

authorities and private sectors, 

which includes the following: 

• Defining the activities related to 

the objectives agreed 

• Illustrating the importance of 

activities and preparing a detailed 

cost analysis 

• Setting priorities based on the 

principle of cost-benefit analysis 

and arranging that according to 

their contribution to achieving 

the objectives 

How do you assess the role 

of the Ministry of Finance 

in improving the investment 

climate in the country 

Where does the UAE stand 

in accordance to world-wide 

standards in promoting and 

attracting foreign investments 

The Ministry of Finance plays a 

prominent role in improving and 

strengthening the investment 

climate in the UAE through its 

bilateral agreements with various 

countries all over the world in 

order to strengthen the state’s 

position as a global economic 

centre. The Ministry has signed 

8 agreements on the prevention of 

double taxation during the period 

of 2011-2012, which lead up to 

a total of 72 agreements signed 

by the UAE; representing 37% of 

world countries. During the same 

period, the Ministry also signed 5 

agreements to protect and encourage 

investments bringing the total 

number to 43 agreements which 

represent 22% of the countries in 

the world. 

What are the main challenges 

that you will try to overcome 

in the Ministry’s next strategy 

The Ministry of Finance’s new 

strategic plan will focus on a range 

of areas of great importance in the 

field of governmental financial scope 

of work. Other issues that would fall 

into the same include strengthening 

the security of financial information 

of the federal government, 

improving knowledge of the 

ministries and departments on the 

Federal fiscal decentralization policy 

and the limits of accountability 

in addition to overcoming 

the challenge of competency 

movement to other parties, as well 

as ensuring the highest possible 

degree of cooperation with the local 

authorities to exchange financial 

statements and financial reports 

of the UAE. 

It could be said that we at the 

Ministry of Finance have reached 

another milestone in achieving 

our vision of being one of the best 

ministries in the world in the field of 

management of financial resources, 

and with the renewed vision of our 

wise leadership, we always strive 

to enhance our performance levels 

in response to challenges and 

developments. 

How do you see the honoring 

of the magazine Emerging 

Markets to HE Obaid Humaid 

Al Tayer, Minister of State 

for Financial Affairs, with 

the award of Best Financial 

Minister in the Middle East 

and North Africa 

The honoring of HE Obaid 

Humaid Al Tayer, Minister of 

State for Financial Affairs, came 

in recognition to his continuous 

efforts and excellence in the field of 

management of financial resources 

in order to achieve sustainable 

and balanced development for 

the United Arab Emirates. HE 

Al Tayer had a leading and direct 

role in addressing economic issues 

confronted by the UAE during 

the global financial crisis. HE 

contributed to the management 

of Gulf relations during the UAE’s 

presidency of the 31st summit of the 

GCC Common Market, as well as 

his efforts that elevated the UAE to 

number one in the field of efficient 

government fiscal policy while 

also ranking 7th in the efficiency 

of financial management in the 

public sector within the Global 

Competitiveness Report 2012 

issued by the International Institute 

for Management Development in 

Switzerland. 

Finally, what would you like 

to tell the employees of the 

Ministry of Finance on the 

occasion of the UAE’s 41st 

National Day 

Over 41 years, the United Arab 

Emirates has achieved many 

accomplishments which mark a 

source of pride with its rich Emirati 

culture and social heritage. This 

was an inevitable result of the 

guidance of our wise leadership 

and the tremendous and tireless 

efforts of the citizens of the UAE. 

Hence, we must all continue to 

unceasingly strengthen the position 

of our country globally and upgrade 

the UAE to becoming a role model 

in the various areas of sustainable 

development at the regional and 

international levels. 

11


MoF News 

12 

MoF Presents its 

Latest Electronic 

Services at GITEX 

The Ministry of Finance (MoF) 

presented its latest electronic 

services through its participation 

in GITEX Technology Week 

2012 at the Dubai International 

Convention and Exhibition Centre. 

MoF’s annual participation in 

the exhibition falls within its 

commitment to keep up with the 

best technologies and international 

practices in the field of e-services. 

During a press conference held 

at GITEX 2012, HH Sheikh 

Hamdan Bin Mohammed bin 

Rashid Al Maktoum, Crown 

Prince of Dubai, launched the 

Government Financial Statistics 

(GFS) System during his visit to 

the UAE Federal e-Government 

stand. Amongst the many new 

e-Services that were released, the 

Ministry of Finance (MoF) also 

launched a complaints/suggestions 

portal relating specifically to the 

Gulf Common Market and the 

customs union (GCC Takamul), 

in addition to a number of new 

e-services for its partners and 

members of the community 

such as those pertaining to the 

e-Dirham-G2 (second generation) 

system. 

A conference was held during 

GITEX that attended by HE 

Saeed Rashid Al Yateem, Executive 

Director of Revenue and Budget, 

HE Khalid Ali Al Bustani, Assistant 


Financial Relations Sector at MoF, 

HE Mariam Al Amiri, Assistant 

Undersecretary for the Management 

of Financial Resources. 

Furthermore, the conference 

reviewed the GCC Takamul System 

and linked it with the concerned 

authorities in the UAE, where it 

enables the Ministry to conduct 

integrated and specialized statistics 

at the level of ministries and 

federal agencies, as well as at local 

authorities in each emirate. The 

GFS system reports on the overall 

size of the federal government 

operations and federal budgets of 

the UAE government across all 

accounts items and provisions of 

implementing the consolidated 

budget for the fiscal year in both its 

revenues and expenses. The system 

also helps in determining the size of 

the contribution of the public sector 

in the national economy. 

The GCC Takamul System is the 

first e-project of its sort in the 

Gulf region. It seeks to overcome 

the obstacles faced by citizens of 

the UAE and GCC in addition 

to Gulf multinational companies 

with regards to the Gulf Common 

Market. It also features a 

documenting system of all actions 

taken to deal with complaints and 

the suggestions made, enabling 

the issuance of integrated and 

specialized statistics for all kinds of 

transactions that are offered by the 

public to identify areas that require 

development and improvement 

in the quality of its services both 

within the country or abroad. 

13


MoF News 

UAE Signs an Agreement to 

Avoid Double Taxation on 

Income with Palestine 

MoF Receives 

a Delegation 

from the Saudi 

Capital Market 

Authority 

In line with its ongoing efforts to 

enhance relations and the exchange 

of expertise with various financial 

parties in GCC, the Ministry of 

Finance (MoF) recently received 

a delegation from the Capital 

Market Authority (CMA) in the 

Kingdom of Saudi Arabia at its 

headquarters in Abu Dhabi. The 

delegation aimed to activate the 

joint cooperation and exchange of 

experiences with various financial 

key players in GCC. 

Through a presentation led 

by Sumayya Thani Al Hamli, 

Project Manager of Budget 

Automation System in MoF, the 

Saudi delegation viewed MoF’s 

experience in launching the zerobased 

budgeting system and its 

automation in 2010 and the 

completion of the medium term 

budget for the years 2011 to 2013. 

MoF Launches Automated 

Budgets Preparation Project for 

Independent Federal Agencies 

14 

Represented by the Ministry of 

Finance (MoF), the UAE signed 

a final agreement with Palestine to 

avoid double taxation on income 

at the Ministry’s headquarters in 

Abu Dhabi in September 2012. 

This agreement aims to support the 

development of economic relations, 

improve the investment climate 

between the two economies, 

and promote importing and 

exporting operations in addition 

to developing direct trade between 

both countries. 

The agreement signed by 

HE Younis Haji Al Khouri, 

Undersecretary of MoF, and Dr. 

Khairi Al Oraidi, Ambassador 

of Palestine to the UAE, reflects 

the efforts of MoF to strengthen 

the UAE’s access to the world’s 

economy through promoting the 

free movement of production 

factors, increase investment 

opportunities, and encourage 

import and export operations while 

avoiding the obstruction of the 

free flow of trade and investments. 

In a bid to ensure the best use 

and development of federal 

government resources and in 

line with agreements signed 

with various independent federal 

agencies, the Ministry of Finance 

(MoF) launched an automated 

budgeting system for independent 

federal entities in Abu Dhabi in 

September 2012 during the 

meeting organised by the Ministry 

with representatives from various 

independent federal agencies in 

the UAE. 

The implementation of the project 

aims towards the standardization of 

accounting and financial reporting. 

MoF also signed agreements that 

identify all forms of cooperation 

and coordination that will take 

place between the parties and the 

terms and conditions for services 

provided or received by the 

Ministry. Additionally, they clarify 

all forms of cooperation in MoF’s 

training for those institutions and 

bodies with regard to the use of the 

new system. 

15


MoF News 

UAE Signs Initial Agreement 

with Japan to Avoid Double 

Taxation on Income 

16 

In line with its efforts to promote 

financial relations on a global 

level, the United Arab Emirates, 

represented by the Ministry of 

Finance (MoF), signed an initial 

agreement with Japan to avoid 

double taxation on income at 

the Ministry of Finance - Japan 

in Tokyo in October, 2012. The 

Ministry of Foreign Affairs in the 

UAE and Abu Dhabi Investment 

Authority (ADIA) attended the 

agreement signing with the presence 

of the UAE Ambassador to Japan. 

On behalf of the UAE, HE 

Khalid Ali Al Bustani, Assistant 


Financial Relations Sector of MoF, 

signed the agreement, whist the 

Japanese Director of the Middle 

East and Africa, who is responsible 

for managing agreements to avoid 

double taxation, signed it on behalf 

of Japan. 

The initial agreement aims to 

identify all the recipients of tax 

and financial benefits that will be 

covered by the main agreement, 

including federal government 

institutions and local and sovereign 

funds, in addition to UAE nationals 

and private sector institutions that 

own investments in Japan. This 

agreement also exempts national 

airlines from taxes, as well as any 

other airlines based in the UAE. 

Furthermore, this agreement 

states that taxes are reduced on 

dividends from 20% to 5% with 

a reduction rate of 75% in cases 

where any UAE institution or 

company owns 10% capital of any 

Japanese company. Additionally, in 

cases where companies do not own 

that percentage, the taxes will be 

decreased from 20% to 10% with 

a reduction rate of 50%. According 

to the agreement’s provisions, Japan 

will exempt all UAE federal and 

local government institutions in 

addition to the UAE sovereign 

funds from 20% tax on interest 

profits. Typically, Japan imposes a 

30% tax on capital profits as well, 

for residents and non-residents. 

The provisions of this agreement 

stipulate exemption of capital 

profits tax which results from 

owning shares or any interest in 

a company, including trust funds. 

MoF Signs an Agreement on G2 E-Dirham with 

Service Providers 

The Ministry of Finance recently 

signed a special agreement to 

provide the second generation of 

E-dirham (G2 E-Dirham) services 

to the Ministry of Labor and the 

Ministry of Health with a group of 

service providers at its headquarters 

in Abu Dhabi and Dubai. MoF also 

announced that applicants (typing 

offices, facility providers, other local 

companies), are welcome to apply 

for this project. 

The agreement, aims to provide 

MoF and the National Bank of 

Abu Dhabi (NBAD) with the 

systems required for selling and 

collecting E-Dirham, in addition 

to allowing service providers to 

attain federal fees. The agreement’s 

segments specify the commitment 

of the providers in offering the G2 

E-Dirham services to the public, and 

the policy and provisions pertaining 

to obtaining the devices for selling 

and collection of E-Dirham through 

establishing an account at NBAD. 

17


18 

MoF News 

MoF Launches its Strategy 

Preparation Project for 2014 -2016 


launched its Strategy Preparation 

Project for years 2014-2016 (the 

third phase of its strategy), as per the 

requirements of the UAE cabinet. 

The launching ceremony was held 

in MoF’s premises in Abu Dhabi in 

the presence of a number of officials 

from Federal and local government 

bodies and strategic partners. 

The event included a presentation 

that highlighted the key steps 

required for commencing the 

preparation of the Ministry’s 

strategy in accordance with 

organizational standards of 

excellence. HE Al Khouri also 

showcased the general framework 

of the strategy for the years 2014 

- 2016, the suggested timeline for 

implementation and its planning 

phases, where a preliminary draft 

of the strategy will be submitted 

to the Cabinet. 

The launching session also included 

discussions between MoF’s higher 

management members with officials 

from government entities and the 

strategic partners who attended the 

session. The discussions focused 

on the requirements of preparing 

MoF’s strategic plan and the best 

global practices in this filed. 

The session was attended by 

representatives the Prime Minister's 

Office, Ministry of the Interior, 

Ministry of Labor, Ministry 

of Foreign Affairs, Ministry 

of Economy and the Ministry 

of Health, in addition to the 

Departments of Finance in Abu 

Dhabi and Dubai, the UAE Central 

Bank, the General Pension & 

Social Security Authority, Emirates 

Investment Authority, Emirates 

Identity Authority, Emirates Post 

Holding Group, National Bank 

of Abu Dhabi, and Telectron and 

Dante. 

UAE Signs Agreement with 

Mexico to Avoid Double 

Taxation on Income 

The United Arab Emirates, 

represented by Ministry of Finance 

(MoF), signed an agreement in 

November 2012 with Mexico to 

avoid double taxation on income 

at the Ministry’s headquarters in 

Abu Dhabi. This agreement aims 

to strengthen mutual economic 

and trade relations and to develop 

investments between the two 

countries, where Mexico is currently 

the head of the G-20 countries. 

On behalf of the UAE, HE Younis 

Haji Al Khouri, Undersecretary of 

MoF, signed the agreement, whilst 

the Mexican Ambassador to the 

UAE, Francisco Alonso, signed it 

on behalf of Mexico. The agreement 

allows the establishment of a strategic 

cooperation with Mexico and other 

countries of Latin America. Mexico 

is considered one of the most 

important emerging economies 

at the level of Latin American 

countries, and one of the most 

prominent countries included in the 

global index of government bonds. 

MoF Continues 

to Promote 

Financial 

Literacy 

amongst 

Different 

Segments in the 

UAE 


recently organised a lecture on the 

methods of preparing the Federal 

General Budget for a group of 

Political Science female students 

at the United Arab Emirates 

University (UAEU). The lecture 

is one of the many initiatives that 

MoF is taking part in to increase 

financial literacy awareness 

amongst the UAE youth and 

towards it ongoing commitment 

to the community. The lecture was 

attended by HE Younis Haji Al 

Khouri, Undersecretary of MoF, HE 

Saeed Al Yateem, Executive Director 

of Revenue and Budget of MoF, 

and a number of the Ministry’s 

Department Directors. 

19


MoF News 

MoF and Sharjah 

Chamber of 

Commerce & 

Industry Signs 

MoU on the 

Establishment of 

the Permanent 

Exhibition 

of Islamic 

Countries’ Goods 

20 

The Ministry of Finance 

Organises a Forum for its 

Strategic Partners in Dubai 

The Ministry of Finance organised 

a forum in Dubai for its strategic 

partners last November which 

included officials from more 

than 26 divisions which included 

ministries, federal institutions, 

federal agencies, independent 

services and financial circles in 

local governments, as well as other 

relevant parties in the context of 

preparing for the Ministry’s strategy 

for the third session 2014-2016. 

The aim of organizing this forum 

was to highlight the needs of the 

Ministry’s partners and to take 

into account their important 

requirements when preparing the 

new strategic plan for the third 

session 2014-2016. Also, the forum 

was a potential way for the Ministry 

to demonstrate its keenness to 

communicate with its partners and 

to learn more about their opinions 

and suggestions in the development 

of strategic plans. 


signed a Memorandum of 

Understanding (MoU) with 

Sharjah Chamber of Commerce 

& Industry (SCCI) which aims to 

enhance the mutual cooperation 

between the two parties and to 

establish a permanent exhibition 

for Islamic countries’ in Sharjah 

in collaboration with the Islamic 

Development Bank group; one 

of the development organizations 

that the United Arab Emirates 

contributes in. 

This joint cooperation falls in line 

with the strategic objectives that 

combine MoF and SCCI, which 

seeks to develop and nurture 

the economic relations between 

Sharjah and the UAE as a whole 

with other countries. The exhibition 

will also contribute to locating the 

UAE as a leading center on the 

regional and international levels 

and will guarantee international 

financial relations with institutions, 

organizations and regional and 

international development funds 

as well as with other countries. 

21


Field Visits 

22 

Ministry of Finance Organises Introductory 

Meeting about the Gulf Common Market at the 

American University in UAE 

In order to inform students on the 

main features and advantages of 

the GCC common market, the 

Ministry of Finance organised an 

introductory meeting last October 

on the campus of the American 

University in the Emirates. The 

meeting, which targeted university 

students and staff, highlighted the 

strategic role played by the Ministry 

considering that it is the assigned 

party to monitor the workflow of 

the Gulf common market in the 

UAE. 

The Ministry’s representatives gave 

a presentation during the meeting 

on the benefits that GCC citizens 

enjoy with regards to education, 

health and social services as well as 

considering them as citizens in all 

GCC states and economic fields 

relating to the market, in addition 

to privileges in issues concerning 

moving, residency, working in 

government and private sectors, the 

practice of professions and trades, 

real estate ownership, movement of 

capital, trading and buying stocks 

and establishing companies. 

MoF Organises 

a Workshop 

on Saving 

and Personal 

Budgeting 

for Students 

of the Ajman 

Educational Zone 


organised a workshop on personal 

budgeting and saving mechanisms 

in the Sheikh Zayed Hall at the 

University of Ajman. HE Younis 

Haji Al Khouri, Undersecretary 

of MoF, and HE Ali Hassan Ali, 

Director of Ajman Educational 

Zone, participated in the 

workshop along with a number 

of assistant undersecretaries of 

MoF. This initiative falls in line 

with MoF’s ongoing support for 

the UAE community and in its 

efforts to educate young Emiratis 

about different personal financial 

matters and in particular the “saving 

concepts”. 

This workshop targeted students of 

13 schools in Ajman Educational 

Zone. The workshop discussed a 

number of key themes i.e. saving 

concepts, facts and statistics and 

tips and guidelines to regulate the 

process of saving; in addition to 

reviewing some practical examples 

in this field. 

23


Workshop and Training 

24 

MoF Organises a Workshop on 

Spending in the Education and 

Health Sectors 

In cooperation with the World 

Bank, the Ministry of Finance 

(MoF) recently held a workshop at 

the Madinat Jumeirah on spending 

in the education and health sectors 

in conjunction with state officials 

in the UAE. 

The workshop aimed to exchange 

experiences of some countries, 

where they reviewed ways to 

develop spending in education and 

health sectors to reach the best levels 

of service according to international 

standards. Furthermore, it aimed to 

raise the efficiency and effectiveness 

of the exchange of the federal 

budget in the education and health 

programs, as the two sectors have a 

direct impact on the lives of citizens. 

It is worth mentioning that the 

public, and higher/ university 

education budgets for the financial 

year 2012 amounted to 20% of the 

total budget, whereas the health 

sector accounted for 8% of the total 

budget, which demonstrates the 

critical importance of these sectors. 

MoF Organises 

a Workshop 

on Public 

Expenditure 

and Financial 

Accountability 

for the 

Development of 

the Budgeting 

System 

In line with achieving its strategic 

objective and in collaboration with 

the World Bank, the Ministry 

of Finance (MoF) organised 

a workshop last October on 

public expenditure and financial 

accountability for the development 

of the budgeting system at MoF 

in Abu Dhabi. The Ministry’s 

goal is based on the enhancement 

of relations with international 

specialized institutions and bodies 

in order to benefit from their 

technical and scientific expertise 

as well as to view the tests applied in 

different countries globally. 

The workshop reviewed and 

highlighted current adopted 

systems and applications in the 

preparation and monitoring of the 

implemented government budgets, 

and methods of applying the 

principle of transparency in public 

spending. It also shed light on the 

mission statement of financial 

accountability in order to show 

financial information and data in a 

manner that will allow professionals 

to properly follow the departments’ 

functions and place controls that 

ensure the maintenance of public 

money and achieve its goal of 

applying the principle of financial 

accountability through using 

government funds that achieve 

aspirations of the community and 

raise the standards of living. 

25



The Ministry of 

Finance Organises 

a Seminar on 

Counseling and 

Family Education 

for Employees 

26 

MoF Highlights the Need for 

Risk Management 


recently hosted a workshop titled 

Managing the Risk of Change 

that targeted the employees of 

the Ministry of Public Works and 

National Qualifications Authority 

in line with its strategy of training 

and developing the performance of 

their employees, which emphasises 

on its active cooperation with the 

various ministries and federal 

authorities. 

The workshop covered the concept 

of risk management and its 

connection to crisis and change 

management. The agenda also 

covered different types of risks 

and their classifications according 

to the best global practices. In 

addition, it highlighted the 

practical methods used to identify 

organizational risks, measure the 

probability of their occurrence 

and the severity of their impact. 

It also shed light on trategic and 

operational planning, and efficient 

project management. 

The Ministry of Finance (MoF), 

along with various federal and local 

bodies, organised a seminar recently 

on counseling and family education 

for their employees at the Ministry’s 

headquarters in Abu Dhabi. The 

seminar was in conjunction with 

each of the Marriage Fund, the 

Judicial Department – Abu Dhabi 

and the Health Authority – Abu 

Dhabi. 

The seminar addressed many 

social aspects, where a specialist 

from the Judicial Department – 

Abu Dhabi gave a lecture titled 

Understanding Psychology and 

Spiritual Compatibility which 

included several topics such as an 

introduction to psychology, why it 

was important to understand it and 

the influential aspects in trying to 

understand it. 

Ministry of Finance Organises a 

Workshop on Etiquette Skills and 

Protocols in Abu Dhabi 

In order to enable the participants 

to acquire the best communication 

tools and protocols adopted in their 

professional lives, the Department 

of Human Resource Management 

in the Ministry of Finance (MoF) 

organised a two day workshop last 

November under the title, Etiquette 

Skills and Protocols at its headquarters 

in Abu Dhabi. The participants 

were a number of employees from 

the Ministry and others from the 

National Qualifications Authority. 

The workshop included a 

presentation carried out by Reem 

Obeidat, Counselor in leadership 

excellence, media, international 

relations and human resource 

management, which highlighted 

the art of communication, 

protocol, etiquette, the science 

of communication and the 

importance of having the 

appropriate knowledge and 

communication skills. 

27



MoF Organises a Workshop on the 

Preparation of a Uniform Model for Contracts 

Advisory Services 


Organises a Workshop 

on the Mystery 

Shopper System 

28 

The Ministry of Finance Concludes 

the First Regional Workshop on Tax 

Purposes in the Middle East and Africa 


organised the first regional 

workshop on tax purposes in 

the Middle East and Africa in 

Dubai in collaboration with the 

Global Forum on Transparency 

and Exchange of Information in 

November, 2012. 100 specialists 

representing 25 different countries 

attended the workshop in addition 

to representatives from federal 

ministries and local and economic 

departments, free zones, the Central 

Bank along with Ernst & Young and 

The World Bank. 

The workshop focused on the 

discussion of the elements of 

tax transparency which included 

the provision of accounting 

information and property in the case 

of companies, partnerships, funds 

and other entities and freedom 

of access to this information by 

the competent authorities that 

supports transparent legal and 

legislative framework and highlights 

the benefits of recognition to the 

work of the forum. The workshop 

also informed participants of 

the benefits of the application 

of standards of transparency and 

helped explain issues related to 

information exchange and how 

to fulfill the requirements of tax 

conventions. This is in addition 

to participating in the regional 

expertise for applied policy relevant 

to the subject of the workshop 

and to raise the evaluation of the 

participating countries and those 

who will be attending later. 

The Ministry of Finance, represented 

by the Legal Affairs Department, 

recently held a training workshop 

which targeted the staff of federal 

bodies in the UAE and focused 

on clarifying the mechanisms in 

preparing the consolidated contracts 

MoF Organises a Workshop 

on Time Management for its 

Employees and Partners 

Striving to develop the skills of its 

employees and to enhance relations 

with various ministries and bodies in 

the UAE, The Ministry of Finance, 

represented by the Department of 

Human Resources Management, 

recently held a workshop titled 

Time Management, which enabled 

on advisory services to those who 

carry out the purchasing process 

through the e-purchasing system. 

Omar Abu Salim, a legal expert in 

the Ministry, presented the draft of 

the approved form of the contract 

and shed light on all its aspects. 

participants to adopt the methods 

and strategies in the investment 

and scheduling of their time and 

priorities. This was held with the 

participation of a number employees 

from the Ministry of Finance, The 

Ministry of Labor and the General 

Authority for Qualifications. 

The Ministry of Finance (MoF), 

in cooperation with the European 

Business Center for Training and 

Development, recently held a 

workshop on the mystery shopper 

system that targeted the Ministry 

staff in Abu Dhabi and Dubai. 

The workshop falls in line with the 

Ministry's commitment to adopting 

the best international practices in 

evaluating their performance, and 

in an effort to further develop the 

concept of providing services at the 

highest levels for stakeholders. 

Throughout the workshop, 

participants were briefed on the best 

practices in the field of customer 

service, through clarifying the 

importance of customers and 

the properties of specialized 

organisations in their service, 

excellence in customer service 

and dealing with complaints and 

customer ratings in addition to 

presenting ways to deal with them, 

as well as explain the 80 \ 20 rule 

related to customer service. 

29


Social Responsibilities 

Employee Contributions 

30 

MoF Employees 

Take Part in 

Promoting 

Eco-Friendly 

Practices 

As part of its ongoing mission to 

participate in local and global 

community events, and to 

encourage its employees to take 

part in environmental initiatives, 

the Ministry of Finance (MoF) called 

on all its employees to use public 

transportation modes to and from 

the Ministry in Dubai during the 

Public Transport Day on the first of 

November of each year, where MoF 

provided them with free of charge 

«Nol» Dubai Metro cards. 

Ministry of 

Finance Organises 

its Annual Book 

Fair 

Hosted by HE Obaid Humaid 

Al Tayer, Minister of State for 

Financial Affairs, the Ministry 

Ministry of Finance Organises a 

Traffic Awareness Lecture 

MoF recently held a lecture titled 

Traffic Awareness in collaboration 

with the General Department 

of Traffic of Dubai Police at the 

Ministry’s Headquarters in Dubai. 

The lecture targeted employees 

of the Ministry of Finance, the 

General Pensions and Social 

Security Authority and scholarship 

students at the Ministry. 

The lecture delivered by Major 

General Engineer Mohammed 

Saif Al Zafeen, Director of 

General Administration of Traffic 

at Dubai Police, aimed to educate 

of Finance recently organised its 

first annual book fair in Dubai. 

This event enabled the visitors to 

participate in a meaningful culture 

exchange. The Book Fair was in the 

framework of the Iqraa’ initiative 

that was released by the Human 

Recourses Department of MoF with 

the aim to spread cultural awareness 

amongst employees. 

the audience on the importance of 

complying with the traffic rules. 

In addition, Zafeen discussed the 

difference in the level of traffic 

safety in Dubai compared to some 

developed countries; In turn, he 

highlighted the efforts made by 

Dubai Police in setting road safety 

and preserving the lives of its 

citizens. The estimated rate of road 

death registered in the Emirates in 

2007 was around 21.7 per hundred 

thousand people, while this index 

decreased during 2011 to 3.9 per 

hundred thousand inhabitants of 

the UAE. 

Clarifying the Core 

Concepts of Corporate 

Governance 

The term Good Institutional 

Governance raises some ambiguity 

due to its novelty. This concept 

began to take shape nearly three 

decades ago and was still not 

identified in the English language. 

At the present time, the term is no 

longer limited to the concept and 

scope of corporate governance, 

but has also extended to include 

governance of national economies 

to cope with the requirements 

of the contemporary economic 

globalisation, which generally resists 

all forms of financial corruption. 

Governance can be defined as “the 

system through which the work 

of the organisation is guided and 

controlled at the highest level 

in order to achieve its objectives 

and meet the required standards 

of responsibility, integrity and 

transparency.” The Cadbury 

report issued in 1992 has described 

governance as follows “the state's 

economy relies on the efficiency of 

companies, and thus the boards of 

directors’ effectiveness in carrying 

out their responsibilities determine 

the competitive position of the 

state, and this is the essence of 

any system of governance”. 

Corporate Governance is also 

defined as follows: 

1. Linguistic Definition of 

Governance: 

Corporate governance is the system 

by which companies are directed 

and controlled through rules and 

foundations for the purpose of 

achieving success. Other findings 

show that the word Governance 

is derived from the terms control 

and intervention. Moreover, 

Governance means control system 

with full compliance to fulfill 

transparency, objectivity and 

responsibility. 

2. Accounting Governance: 

From the perspective of accounting, 

the concept refers to the elements 

used to protect investors’ money 

as well as to access the returns to 

ensure the safe usage of money by 

Directors or managers preventing 

them from achieving personal 

benefits. Accounting practice is 

highly controlled by accounting 

standards in a global set up in 

31

Employee Contributions 

32 

order to achieve transparency, 

expand disclosure of accounting 

data, financial statements and 

benefits in addition to applying the 

internationally accepted accounting 

standards. 

3. Administrative Governance: 

The precise definition of 

administrative governance is not 

yet determined, though it could 

be argued that this concept is a set 

of regulatory and administrative 

practices governing the relationship 

between the various stakeholders 

obtaining the service and protecting 

them from wrong practices. 

4. Legal Governance: 

Legal governance refers to the 

establishment, execution and 

interpretation of processes and 

rules placed by corporate legal 

departments in order to ensure a 

smoothly-run legal department 

and corporation. Therefore, it 

handles legal rules and technicalities 

that provide requirements to 

maintain the corporate entity of 

the organisation in addition to 

providing safeguards for the rights 

of all the parties or the beneficiaries 

involved in the emergence and 

survival of the organisation. 

Despite the different findings 

among researchers and writers 

regarding the most appropriate 

and best definition of governance; 

they all agreed on the origins 

and emergence of the concept of 

governance and its purpose. In 

fact, it generally aims to tighten 

financial control and resistance of 

all forms of financial corruption. 

Consequently, it focuses on the 

optimal allocation of economic 

and human resources around the 

increased ability to compete, the 

accuracy of data, the liberation of 

trade and the facilitation of the 

integration of national economies 

into the global economy. 

We will later explain the use of the 

concept of good governance and 

its most important characteristics, 

pillars and elements. 

Mohammed Abdl Dhaher Sharqawy 

Financial Controller, Researcher 

09 December 2012

Tenth edition

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