When we talk about the great economic success of the United Arab Emirates, it is always Dubai that is the talk of the town thanks to its massive tourism industry and hundreds of thousands of influencers. Abu Dhabi in comparison may not be as glamorous as Dubai but is a major economic driver of the country.
We have nothing but praises for Dubai, but today we will look at the Emirate of Abu Dhabi, which holds both the honor of hosting the capital of the United Emirates and the honor of being the largest emirate in the union. More specifically we will look at the Abu Dhabi Department of Finance and its contributions.
When it comes to the economic success of Abu Dhabi, just like Dubai it is the Department of Economic Development that takes the cake and while its successes are commendable. We will look at the silent yet powerful Department of Finance Abu Dhabi that actually handles the finances of the Emirate.
We will look at its history and its functions in the financial sector of the Emirate and most importantly its vision for the future of the Emirate of Abu Dhabi.
History and Vision of the Department of Finance Abu Dhabi
The Department of Finance Abu Dhabi is one of the oldest institutions in the country as it was established in 1966 and has since played a pivotal role in the economic development of the country. It has done so by responsibly and diligently handling the finances of the Emirate.
It has not only efficiently handled the economic resources of the Emirate but has also utilized them in a way that has led to long-term financial sustainability and massive economic growth that has put both Abu Dhabi and the UAE on the map of the world.
So, in essence, the Department of Finance Abu Dhabi is not only responsible for running the day-to-day finances of the country but also responsible for safeguarding its financial resources and utilizing them efficiently and effectively for the economic growth and prosperity of the country.
The Strategic goals of the Department of Finance Abu Dhabi
The Abu Dhabi Department of Finance (ADDOF) has a clear vision for the emirate and the country and as such it has predefined strategic goals to achieve this vision, as the department itself puts it; they are as follows.
- Creation and enforcement of an economic policy that leads to long-term fiscal sustainability.
- To balance debts, placements, and treasury activities through a robust funding strategy.
- Maximizing revenue collection through effective tracking and monetarization of assets and funds.
- Managing expenditure by optimizing spending and efficiently utilizing government resources.
- Having a budget control that prioritizes transparency and fiscal discipline.
Functions of the Abu Dhabi Department of Finance (ADDOF)
The Department of Finance is not only responsible for making the vision set forth by the Abu Dhabi government and the Ministry of Finance a reality but is also responsible for handling the day-to-day fiscal responsibilities of the Emirate. Here is a brief look at its core functions and the teams that handle them.
Fiscal Policy
The Department of Finance has a fiscal team that is responsible for updating the fiscal plans of the emirate to ensure fiscal sustainability at a macroeconomic level. It does so by creating new economic models and updating the existing ones.
This way it can forecast the global economic situation, evaluate potential risks, and recommend policy adjustments to steer the economy in the right direction. This team is comprised of top experts in their respective fields with decades of experience handling the finance of the Emirate.
Treasury & Government Accounts
The treasury and government accounts team is responsible for handling government finances. It is the responsibility of this department to ensure there is enough liquidity to manage the expenditure of the government and its many departments by controlling their bank accounts.
Furthermore, it is the responsibility of this department to create and update accounting policies, issue finance and accounting reports, and handle all the electronic accounting services of the government.
Budget
The Department of Finance Abu Dhabi is also responsible for planning and formulating the budget of the Emirate. Not only does it create and approve the budget in cooperation with other departments it also deals with its implementation by monitoring its performance and adding improvements wherever needed.
Government Revenues
All the revenue generated by the government both through taxes and non-tax revenue streams is monitored and handled by the finance department. It ensures that the revenue is being collected efficiently and effectively and if there is a need for any improvement, it implements it.
Not only does it collect revenue, it also monitors and alters the fiscal policy to diversify and add new revenue streams, while getting rid of any shortfalls hence leading to economic growth.
Government Investments
The Department of Finance Abu Dhabi is also responsible for assessing the Government Investment Portfolio and guiding the leadership in all financial matters. It helps develop and update the Government Ownership Policy in accordance with the expectations of the shareholders.
With the government invested in so many projects, it is the responsibility of this department to oversee these projects and ensure their development and completion.
Debt Management
One of the most important responsibilities of this department is to handle debt management and liabilities. It does so by optimizing risk in any lending activities and borrowing activities by both the government and other institutions related to the government.
Commercial Buildings
Management of all commercial buildings that fall under the purview of the government is handled by the Department of Finance. It also handles any loans handed out to UAE citizens in the Emirate of Abu Dhabi for land development and commercial building.
Independent Units
There are many independent units responsible for handling various government responsibilities that fall under the jurisdiction of the Abu Dhabi Department of Finance (ADDOF). Here is an example of a few.
- Internal Audit Office
- Financial Reporting & Control
- Communications; and
- Strategic Planning
Conclusion
In conclusion, the Department of Finance Abu Dhabi is the heart of all fiscal and economic activities of the Emirate of Abu Dhabi. It not only handles the daily fiscal responsibilities but also looks after the long-term economic policies of the Emirate, ensuring fiscal stability and sustainability.
