UAE and Russia explore AI applications to advance government financial management systems in budgeting

The UAE, represented by the Ministry of Finance, conducted the second UAE–Russia Strategic Financial Dialogue today at the Ministry’s headquarters in Dubai. The meeting was co-chaired by Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, and Anton Siluanov, Minister of Finance of Russia.

This dialogue aimed to bolster cooperation and explore effective ways to incorporate AI into public financial management, the Emirates News Agency (WAM) reported. It also facilitated the exchange of expertise regarding best practices in digital transformation, financial governance, and technology risk management.

From the UAE side, attendees included Younis Haji Alkhoori, undersecretary of the Ministry of Finance; Saeed Rashid Al Yateem, assistant undersecretary for Government Budget and Revenue Sector; Ali Abdullah Sharafi, acting assistant undersecretary for International Financial Relations; Shabana Aman Khan Begum, executive director of the Tax Policies Sector; and Saqr bin Ghalib, executive director at the Artificial Intelligence, Digital Economy and Remote Work Applications Office, along with several senior officials from the Ministry of Finance.

The Russian delegation featured Andrey Makarov, chairman of the State Duma Committee on Budget and Taxes; Irina Okladnikova, first deputy minister of Finance of the Russian Federation; Alexey Sazanov, state secretary and deputy minister of Finance of the Russian Federation; and Timur Zabirov, ambassador extraordinary and plenipotentiary of the Russian Federation to the United Arab Emirates.

Read more: UAE, Russia sign double taxation avoidance draft agreement to boost economic cooperation

Focus on financial sustainability

In welcoming the Russian delegation to the UAE, Mohamed bin Hadi Al Hussaini emphasised that the meeting illustrates the UAE’s commitment to broadening cooperation with Russia, particularly in the realms of financial innovation and digital transformation. He added that the integration of AI in budgeting, payroll management, and revenue forecasting represents a significant opportunity to enhance government performance.

He highlighted that UAE–Russia relations serve as a distinguished model of strategic partnership in the financial sector, as the UAE continues to solidify its position as a global financial hub through investments in advanced technologies and the development of institutional frameworks founded on innovation and knowledge.

Also, he underscored the importance of the dialogue as a platform for sharing insights and expertise concerning the future of digital financial governance.

Al Hussaini further asserted that financial sustainability and smart governance necessitate bolstering technical cooperation and launching joint initiatives aimed at developing financial forecasting tools and improving the efficiency of public resource allocation.

He reaffirmed that the Ministry of Finance will persist in building upon this collaboration through regular technical meetings designed to implement the dialogue’s outcomes and advance priority initiatives in support of sustainable development in both countries.

Anton Siluanov noted, “In February of this year, the first meeting of the Russian-Emirati Financial Dialogue was successfully held, where we discussed a wide range of issues and laid the foundation for continuing work in this format. An important event was the signing of the updated Agreement on the Avoidance of Double Taxation.”

He remarked that the teams from our finance ministries continue to work in the priority areas previously identified. Through collaborative efforts, favourable conditions have been established for the development of the entire spectrum of Russian-Emirati relations, particularly in the domains of economics, investment, and finance.

Trade growth

Siluanov highlighted that trade between the United Arab Emirates and Russia experienced notable growth during the first half of this year, reaching approximately AED24.4 billion (equivalent to $6.6 billion).

He noted that this growth reflects the tangible results of the close bilateral cooperation between the two countries, emphasising that the UAE continues to strengthen its position as a key partner to Russia in enhancing financial and investment cooperation and facilitating cross-border transactions.

During the meeting, both parties discussed strategies to enhance financial and technical cooperation between the UAE and Russia, with a particular emphasis on leveraging artificial intelligence technologies to advance government financial management systems.

The dialogue encompassed critical themes such as public budget planning, improving payroll management efficiency, and supporting digital economy initiatives, aligning with both countries’ strategic vision to establish smart financial ecosystems driven by innovation and comprehensive digital transformation.

The meeting included three pivotal technical sessions. The first, titled “Government Budgeting,” delved into the application of AI in budget formulation, enhancing revenue collection efficiency, optimising public expenditure, and using AI for revenue forecasting and macroeconomic impact assessment. The second session, “AI Applications in Payroll Management,” featured a presentation on the “Smart Payroll Officer” concept, while the third, “Artificial Intelligence in the Digital Economy,” explored emerging AI-driven models within the digital economy.

In conclusion, Mohamed Hadi Al Hussaini and Anton Siluanov emphasised the significance of ongoing cooperation and the exchange of technical knowledge, as well as the necessity for regular follow-up meetings to ensure the effective implementation of joint initiatives that foster sustainable development and financial innovation in both nations.