Tenth edition

mof.gov.ae

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.

Ministry of Finance

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MoF e-Newsletter 10 th Edition January 2013

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.

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MoF e-Newsletter 10 th Edition January 2013

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

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MoF e-Newsletter 10 th Edition January 2013

Interview

Interview with HE

Younis Haji Al Khouri,

Undersecretary of the

Ministry of Finance

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

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MoF e-Newsletter 10 th Edition January 2013

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.

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MoF e-Newsletter 10 th Edition January 2013

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

Undersecretary of International

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.

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MoF e-Newsletter 10 th Edition January 2013

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.

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MoF e-Newsletter 10 th Edition January 2013

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

Undersecretary of International

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.

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MoF e-Newsletter 10 th Edition January 2013

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MoF News

MoF Launches its Strategy

Preparation Project for 2014 -2016

The Ministry of Finance (MoF)

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

The Ministry of Finance (MoF)

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.

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MoF e-Newsletter 10 th Edition January 2013

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.

The Ministry of Finance (MoF)

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.

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MoF e-Newsletter 10 th Edition January 2013

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

The Ministry of Finance (MoF)

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


MoF e-Newsletter 10 th Edition January 2013

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


MoF e-Newsletter 10 th Edition January 2013

Workshop and Training

The Ministry of

Finance Organises

a Seminar on

Counseling and

Family Education

for Employees

26

MoF Highlights the Need for

Risk Management

The Ministry of Finance (MoF)

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 e-Newsletter 10 th Edition January 2013

Workshop and Training

MoF Organises a Workshop on the

Preparation of a Uniform Model for Contracts

Advisory Services

Ministry of Finance

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

The Ministry of Finance (MoF)

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


MoF e-Newsletter 10 th Edition January 2013

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

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