UAE, Russia Partner on AI for Smarter Government Budgeting

The United Arab Emirates and Russia are deepening their strategic financial partnership, with a major focus on integrating artificial intelligence into government budgeting and public financial management. This collaboration was the central theme of the second UAE-Russia Strategic Financial Dialogue, held recently in Dubai. The high-level meeting, co-chaired by Mohamed bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, and Anton Siluanov, Russia’s Minister of Finance, aimed to strengthen bilateral economic ties and explore innovative technological applications for state finances.

A key objective of the dialogue was to enhance cooperation and identify effective methods for deploying AI in the management of public funds. The discussions also facilitated a valuable exchange of expertise in digital transformation, financial governance frameworks, and managing risks associated with new technologies. This forum underscores a mutual commitment to modernizing financial systems through cutting-edge solutions.

The UAE delegation featured prominent figures including Younis Haji Alkhoori, the Undersecretary of the Ministry of Finance, alongside several assistant undersecretaries and executive directors overseeing budget, revenue, international relations, tax policy, and artificial intelligence. The Russian contingent was equally high-level, comprising the Chairman of the State Duma Committee on Budget and Taxes, senior deputy finance ministers, and the Russian Ambassador to the UAE.

In his welcome address, Mohamed bin Hadi Al Hussaini stressed that the meeting reflects the UAE’s dedication to expanding its cooperative relationship with Russia. He pointed to financial innovation and digital transformation as particularly promising areas. The integration of AI for tasks like budgeting, payroll administration, and revenue forecasting was highlighted as a substantial opportunity to significantly improve government operational performance. He described UAE-Russia relations as a distinguished model of strategic partnership, one that helps the UAE cement its status as a global financial hub through investments in advanced technology and innovative institutional frameworks.

Al Hussaini further elaborated that achieving financial sustainability and intelligent governance requires strengthening technical cooperation and launching joint initiatives. These initiatives would focus on developing sophisticated financial forecasting tools and enhancing the efficiency of public resource allocation. He reaffirmed the Ministry of Finance’s commitment to building on this collaboration through regular technical meetings, ensuring the dialogue’s outcomes are implemented and priority projects are advanced to support sustainable development in both nations.

From the Russian perspective, Anton Siluanov noted the successful foundation laid by the first meeting of the Financial Dialogue earlier this year. He cited the signing of an updated Agreement on the Avoidance of Double Taxation as a significant milestone. He confirmed that finance ministry teams from both countries continue to work on previously identified priority areas, and through these joint efforts, favourable conditions have been created for developing the full spectrum of Russian-Emirati relations, especially in economics, investment, and finance.

Siluanov provided a concrete example of this growing partnership, revealing that bilateral trade between the UAE and Russia saw notable growth in the first half of the year, reaching approximately AED 24.4 billion ($6.6 billion). This increase is a tangible result of the close cooperation, with the UAE strengthening its role as a key partner for Russia in enhancing financial and investment cooperation and facilitating smoother cross-border transactions.

The meeting’s agenda included detailed strategies to boost financial and technical cooperation, with a special emphasis on leveraging AI to advance government financial management systems. Discussions covered critical areas such as public budget planning, improving payroll management efficiency, and supporting initiatives for the digital economy. These themes align with the shared strategic vision of both countries to build intelligent financial ecosystems powered by innovation and comprehensive digital transformation.

The dialogue featured three in-depth technical sessions. The first, on “Government Budgeting,” explored the practical application of AI in budget formulation, boosting revenue collection, optimizing public spending, and using AI for revenue forecasting and macroeconomic assessments. A second session, “AI Applications in Payroll Management,” included a presentation on the “Smart Payroll Officer” concept. The final session, “Artificial Intelligence in the Digital Economy,” examined emerging AI-driven business models within the digital economic landscape.

Both ministers concluded by emphasising the critical importance of ongoing cooperation and the continuous exchange of technical knowledge. They stressed the necessity for regular follow-up meetings to ensure the effective implementation of joint initiatives, which are designed to foster sustainable development and financial innovation in both the UAE and Russia.

(Source: Economy Middle East)