In its ongoing quest for economic diversification away from oil dependency, the United Arab Emirates is implementing a modern, organic budget law along with performance-based budgeting to achieve better disclosure and greater transparency, according to Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry.
In an interview with ‘Emerging Dubai 2006’ – the latest edition of the highly authoritative annual business, economic and political review produced by the UK’s Oxford Business Group (OBG), Sheikh Hamdan said the budget law would also ensure the volatility of oil prices would not create short-term federal budget impacts.
Sheikh Hamdan said the Budget Law is “linking spending with outcomes and measurable results to provide a dynamic planning tool for a period of three years.”
He added: “In 2006, we achieved a balanced budget despite the large increase in oil prices last year. We cannot allow volatility in oil prices to drive our budget and fiscal policies. Our aim is to keep a balanced and growing national budget while increasing the efficiency of government operations and the overall effectiveness of the financial resources available and deployed.”
Asked whether the UAE would consider levying taxes to help boost revenues in the future, Sheikh Hamdan said any introduction would require “extensive studying at all levels to avoid a negative impact on the less fortunate segments of our population, disincentive effects on business and investment and other distortions to the economy.”
He added: “the aim will be to avoid adding to the overall tax burden – any value-added tax or general sales taxes will compensate for the loss of customs revenue, not to generate more revenue.”
In his interview with ‘Emerging Dubai 2006’ Sheikh Hamdan described Dubai as “the world’s most prosperous city.”
‘Emerging Dubai 2006 – the second of two volumes in the Emerging Emirates series this year, the first being devoted to Abu Dhabi – was compiled by a team of seasoned analysts based on the ground for six months and is produced in partnership with the Department of Economic Development (DED), Government of Dubai.
The 240-page volume results from over 200 interviews with government ministers and heads of industry, including Mohammed Ali Alabbar, the DED’s Director General and Chairman of Emaar Properties.
Demand for the publication has been running extremely high said Dubai Director, Sonja Gehlsen, “Such is the interest that we have circulated over 67,000 copies making Emerging Dubai 2006 the largest circulation English publication available on the emirate,” she said.
Dubbing Dubai, ‘The Monaco Of The East,’ OBG Regional Editor, Alexander Schindelar concludes “The future of Dubai is positive with Dubai nationals having seen their city grow in less than 40 years in to a thriving metropolis. Dubai’s global ambitions are making a big impression on the world stage and there is no sign that the emirate’s relentless growth will slow anytime soon. If anything, it is speeding up,”
