UAE Financial Framework

Consolidated Government Financial Framework

The Ministry of Finance manages the federal government’s cash flow and expenditures. Financial sustainability serves as a cornerstone of the Ministry’s strategy in overseeing the federal government’s financial position. Its responsibilities include strategic planning for public finances in the UAE, with the goal of achieving long-term sustainability through the implementation of advanced financial policies and systems.

MoF has developed a comprehensive set of rules and procedures that regulate financial transactions across federal entities, establishing an integrated and consolidated financial framework for all federal government entities. This framework is designed to promote public financial sustainability by diversifying revenue sources, enhancing transparency in the management of financial resources, and increasing the flexibility of financial practices. It also ensures the maintenance of safe levels of federal debt, reinforces trust in the financial system, and accelerates the country’s sustainable development journey.

On this page
Pillars of the Federal Financial Framework
UAE budget preparation
Developing guidelines for planning and implementing the national budget.
Financial reporting and consolidated data
Establishing standard criteria to enhance the accuracy and transparency of financial reporting.
Asset management
Defining procedures for purchasing, depreciating, and managing assets.
Procurement and inventory management
Adopting protocols for purchasing and managing inventory.
Taxes and revenue
Defining policies for tax collection and revenue diversification.
Public debt management
Adopting strategies for efficient public debt management.
Information technology
Integrating IT solutions to enhance financial operations.
Advanced Accounting Systems

MoF is committed to enhancing the efficiency of decision-making by providing accurate, reliable financial data and delivering strategic recommendations to relevant authorities. To support this goal, the Ministry prioritises the preparation of high-quality financial reports and the implementation of advanced accounting systems that ensure data accuracy and integrity.

These systems are regularly reviewed and aligned with international financial standards, including the International Public Sector Accounting Standards (IPSAS). In addition, MoF remains dedicated to continuously updating its financial policies and procedures to maintain efficiency, transparency, and compliance with global best practices.

Federal Budget Framework
Preparing the Consolidated Financial Statements
1
Federal Entities’ Financial Statements

Submitting the trial balance on monthly basis, along with the closing list and explanations, to the relevant financial controller at the Ministry of Finance.
(monthly)

2
MoF Financial Controllers

Implementing the monthly closing procedures after the federal entity has completed closing its books, to ensure closing settlement.
(monthly)

3
Ministry of Finance

Issuing the Annual Financial Circular.
Sending the circular to all federal entities and holding an annual discussion forum.
(By the end of October)

4
Accountants in Federal Entities

Preparing separate financial statements for their respective entities as a prerequisite to initiate the auditing process.
(January of the following year)

5
UAE Accountability Authority

Auditing Financial Statements.
UAEAA conducts audits of separate financial statements for federal entities.
(From January 27 to February 20)

6
Ministry of Finance

Reviewing clarifications and initiating the preparation of the consolidated financial statements.
Receiving the financial statements from entities and reviewing detailed clarifications to prepare a consolidated final account.
(January 27 – February 20)

7
Federal Entities

Amending the final account and sending a revised final account (if necessary).
Federal entities submit a final account.
(End of February)

8
UAE Accountability Authority

Final professional opinion.
UAEAA sends its final professional opinion on the financial statements of federal entities.
(March 15 – March 30)

9
Ministry of Finance

Financial statements are prepared for each federal entity
and submitted to the UAEAA.
(March 17)

10
Ministry of Finance

Preparing consolidated financial statements for the federal government.
Submitting the statements to the UAEAA and submitting the draft law to the Cabinet and the Federal National Council.
(April)

Management of Federal Financial Systems

Governance is a key factor in the UAE financial systems management. It contributes to enhancing transparency, accountability, and efficiency in the management of government resources. A robust governance framework builds trust and encourages the sustainable and efficient use of government resources, contributing to accelerating national development.

Internal Controls

  • Segregation of powers is implemented in the financial management information system to ensure compliance with the role-based access control policy.
  • The preparer-auditor principle is followed across various processes.
  • Real-time data screens display violations of the segregation of powers principle.

User Management

  • The registration process is implemented to provide the user with the required access upon joining the entity based on their role.
  • Approvals are implemented for any modifications to access rights due to a change in the user's role within the entity.
  • All system access rights expire on the employee's last working day.

Data Security

  • Data within the system is segregated and access is granted based on user identity.
  • Sensitive data elements are hidden in inactive user states.
  • The system is only accessible through a secure network and channels compliant with TDRA’s standards
  • Data is transferred to external systems securely using end-to-end encryption.

Service Delivery

  • All system incidents (problems, errors, etc.) and service requests (enhancements) are reported, tracked, and resolved using the technical support system (Talbiah).
  • Reported issues are tracked and analysed to prevent recurrence.
  • Real-time data screens are available to monitor performance.

Change Management

  • Systems Development Lifecycle (SDLC) procedures are followed to introduce and implement new enhancements, correct bugs, and introduce new features to the live system.
  • All changes to the Federal Asset Tracking System are managed through the Talbiah system.
  • All significant and high-impact changes are reviewed and approved by the Change Control Board.

Project Management

  • Project requests are evaluated and prioritised based on importance, results, efficiency, and compliance criteria.
  • Project performance is monitored in real-time in terms of cost, schedule, quality, and change requests, and risks are monitored through “Injaz system”.
  • After projects are delivered and completed, they are referred to the support team.
Federal Financial Standards and Procedures Guides
UAE Accrual Accounting Guide (available in Arabic only)
(15 MB, PDF)
Federal Government Consolidated Financial Policies and Procedures Manual (FGAAP) (available in Arabic only)
(8 MB, PDF)
International Public Sector Accounting Standards (IPSAS)
(418 KB, PDF)
Consolidated Structure of Federal Government Accounts (available in Arabic only)
(5 MB, PDF)
For more information
Legislation and laws governing public finance in the UAE