Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee (SFC) Sunday announced the new body that will be responsible for developing a medium-term financial plan (2011-2014) and will submit its recommendations to the SFC.
Recommendations
The new team will operate under the supervision of the Dubai Department of Finance and will hold its meetings at the department's premises.
The team will provide recommendations on managing the government's revenues, discuss and comment on the government's quarterly reports, and invite support of any third party whose expertise and knowledge is deemed necessary to achieve targeted financial objectives.
This step comes as part of a series of financial reforms aimed at enhancing efficiency of government spending.
The SFC presided over the creation of the Dubai Financial Support Fund last year to oversee the disbursement of money raised by the emirate's $20 billion bond.
Abdul Rahman Al Saleh, Director-General of the Department of Finance, emphasised the importance of cooperation between Dubai government departments, authorities and the Government Finance Team. He called on all parties to work closely to achieve the aspired goals within the agreed time lines.
Spearheaded by Jamal Hamed Al Merri, Director of Central Accounts at the Department of Finance, the team will include representatives of the Department of Finance, Dubai Police, Dubai Municipality, the Roads and Transport Authority, Dubai Customs, Dubai Health Authority and Dubai Airports Authority.
Dr Nasser Saidi, Chief Economist of the Dubai International Financial Centre, welcomed the move: "The increased emphasis on consultation among various government departments on financial decision-making will help the government achieve its fiscal objectives more effectively.
"In the context of the ongoing restructuring of government related entities, coordinated financial planning will help the government to manage its revenues and financial commitments while aligning its medium-term obligations with infrastructure spending plans," said Dr Saidi.
The International Monetary Fund has recommended a multi-year expenditure plan for Dubai as well as the UAE. In Article IV consultations, the results of which were released in February, the IMF suggested that Dubai "increase transparency of economic and financial data, including financial accounts and business strategies for government-related enterprises".
Masoud Ahmad, Director of the IMF's Middle East and Central Asia Department, emphasised the importance of policy coordination among the different emirates. Some initiatives which he welcomed are the establishment of the fiscal coordination committee, the development of a multi-year expenditure plan, the introduction of debt-management units and the adoption of the national statistics law.
