UAE minister calls for tax reform across Arab states amid rising expenditure

Minister of State for Financial Affairs of UAE, Mohamed bin Hadi Al Hussaini attends a meeting of the World Bank Development Committee during the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, United States on April 19, 2024. [Celal Gunes/Anadolu via Getty Images]

The UAE’s Minister of State for Financial Affairs has urged Arab countries to overhaul their tax systems to meet rising fiscal demands and adapt to economic transformations.

Speaking at the ninth Arab Fiscal Forum during the World Government Summit (WGS) 2025, Mohamed Al-Hussaini stressed the need for “decisive [tax] reform efforts” to enhance revenue streams, create jobs, and ensure economic resilience.

“Tax systems must adapt to support rising expenditure while responding to economic transformations in Arab nations,” he said in his address. He also emphasised the importance of governance improvements and incentives for private-sector employment as key drivers of medium-term growth.

H.E. Mohamed Al Hussaini, Minister of State for Financial Affairs in the UAE, emphasizes the need for fiscal sustainability and low inflation in the face of rising challenges.@MOFUAE #WGS25 #WorldGovSummit pic.twitter.com/SNfhBxnvTG

— World Governments Summit (@WorldGovSummit) February 10, 2025

Al-Hussaini called for the adoption of Artificial Intelligence (AI) and digitalisation to enhance tax efficiency. He pointed to subsidy costs, social safety networks and rising public debt as major fiscal challenges, warning that debt burdens drain resources and hinder development progress.

He also noted that regional economies have faced “a series of shocks, including those stemming from conflict and climate-related disasters,” making it “vital” for policymakers to focus on fiscal sustainability while maintaining low emissions.

The minister linked these discussions to the UAE’s Year of Continuity as part of Vision 2025, announced by President Mohamed Bin Zayed Al-Nahyan. “The first line of defence is unity and cohesion, where a shared sense of responsibility drives progress,” he stated.

Last month, Al-Nahyan urged “all those who call the UAE home” to contribute to community development and work “hand in hand” to strengthen social bonds and foster sustainable growth.

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