UAE minister calls for tax system reform to meet rising expenses

Khaleej Times

10-02-2025

Countries across the Arab region need to review and modernise their tax systems to meet rising expenses and evolving economic structures, said Mohamed Al Hussaini, Minister of State for Financial Affairs for the UAE.
Speaking at the World Government Summit (WGS) 2025 during the Arab Fiscal Forum, Al Hussaini emphasised the need for "decisive (tax) reform efforts", improved revenue streams, and policies that promote job creation and economic resilience.
Al Hussaini stressed that updating tax systems is important to adapting to structural shifts in Arab economies. 'There is also a need to enhance revenue streams to support rising expenditure. Tax systems must avoid and respond to structural transformations in Arab economies," he explained.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
He also underscored the importance of 'creating incentives for young people to work in the private sector'. Additionally, he highlighted governance enhancements and incentives for private-sector employment as key drivers of medium-term growth.
The minister also urged Arab nations to leverage Artificial Intelligence (AI) and digitalisation to enhance the efficiency and effectiveness of tax frameworks. 'In the UAE, we have laid solid foundations for government operations that support the country's strategic objectives and development trajectory,' he said.
Ensuring sustainability
Al Hussaini said that the UAE has undertaken a series of reforms aimed at enhancing expenditure and increasing control and listed some challenges governments in the region are facing. 'Among the challenges that have become apparent are the investment in the high cost of subsidy programs and the establishment of social safety networks,' he said. 'Another economic challenge is the rising public debt which drains resources and hinders the development of progress.'
He also said that many economies in the region have faced 'a series of shocks, including those stemming from conflict and climate-related disasters,' and so it was 'vital' for policymakers and authorities to concentrate on 'fostering growth and resilience' while ensuring fiscal sustainability and maintaining low emissions.
Year of community
Al Hussaini linked these economic discussions to the UAE's broader vision for 2025, designated as the Year of Continuity by President Sheikh Mohamed.
'The first line of defence is to determine unity and cohesion of the community, where the connection between individuals promotes a culture of shared responsibility and drives progress,' he said. 'This vision strives for a thriving, united society that aims towards a sustainable management of resources for future generations.'
Last month, the UAE leader encouraged "all those who call the UAE home" to contribute towards improving the community and work 'hand in hand' to strengthen social bonds, foster shared responsibility, and 'unlock potential for inclusive and sustainable growth."