The UAE and Bahrain have reviewed their latest efforts in administering government financial operations, and also expressed their keenness to cooperate toward achieving common goals that are aligned with their shared vision and history.
DUBAI, (Pakistan Point News - 27th Oct, 2018) The UAE and Bahrain have reviewed their latest efforts in administering government financial operations, and also expressed their keenness to cooperate toward achieving common goals that are aligned with their shared vision and history.
This was discussed when a delegation from the Ministry of Finance of Bahrain visited the UAE Ministry of Finance. Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance welcomed the visiting delegation.
Saeed Rashid Al Yateem, Assistant Under-Secretary of Resources and Budget Sector at the ministry reiterated the strong historical relationship between the two countries. "The ministry is committed to achieving the principles of GCC economic integration and the UAE’s role in implementing the unified economic agreement. These visits will enhance the integration and mutual cooperation of GCC countries and encourage them to exchange the experience garnered, knowledge gained and visions set, leading to the development of a regionally consolidated financial system. Additionally, this will further strengthen the UAE's position in the region and highlight its pioneering model of financial work and monetary policies," he said.
Through the meeting, the ministry reviewed the latest pioneering efforts of the UAE in establishing federal budget preparation and finalisation procedures. They highlighted MoF’s role in the development of financial and accounting systems, the tools it uses in preparing the general budget and preparation plans and also reviewed the issuance of financial circulars and procedure manuals on executing operations, reflecting the strategic plans of the country. Additionally, they identified the coordination mechanisms with the Federal Human Resources Authority and possible synergies with financial and administrative systems that would enhance efficiency, management and funding of recruitment programs.
During the visit, the two parties reviewed the zero-based budget preparation procedures, the integrated interface structure among all federal entities, the accurate allocation of costs to activities and programmes, as well as the standards and procedures of the drivers of cost and measurement outcome. Furthermore, they reviewed the method of forecasting the budget cycle, updating what’s pending from the year-based plan and the implementation of the general budget.
The ministry team also presented the financial regulations adopted in the implementation of the general budget in the UAE that have optimised the processes of the federal government by automation. They also introduced the automated systems in use and the projects on integrated interfaces, such as ‘Bayanati’ and Hyperion and other financial reporting systems. All these systems are linked to the federal financial systems, thereby enhancing the financial performance of federal entities.
The ministry discussed preparing and submitting consolidated final accounts, the ways of automating them for ministries and federal entities, the structure the latter takes, and the legal grounds behind such. In terms of monetary management, MoF reviewed the electronic procedures associated with supplier payments as well as its zero-banking system for ministries. The ministry also shared its experience in applying leading-edge financial systems in the preparation of financial operations related to the federal budget implementation, as well as its experience in the procurement cycle until payment.
During the meeting, they presented the tasks, services and guidelines entrusted to the management of the nation’s general budget, which should be adhered to in the preparation of the federal budget, including the rules relating to income and expenditure. They also reviewed the UAE's expertise in the implementation of the financial and central system. The dialogue focused on the system's revenues, challenges, ways to overcome them and the monetary management processes along the way.
The meeting also shed light on the UAE's expertise in public debt management, especially after Federal Decree No. 9 of 2018 on public debt, which enables the federal government to issue sovereign bonds, and helps the banking sector meet international liquidity rules as soon as they are issued. This also enables banks operating in the UAE to buy government bonds denominated in Dirhams or in foreign currencies, which helps them comply with Basel III requirements.
