The recent World Government Summit in Dubai’s “SDGs in Action” conference highlighted the necessity for governments to use innovation and technology to expedite the implementation of the UN Sustainable Development Goals (SDGs). As a result, it was noted that accounting firms could make a significant contribution to this acceleration, according to the global accountancy and finance association ICAEW.
“The year 2030 carries great significance as it is the deadline set by the UN for implementation of its 17 SDGs, aimed at ending poverty, protecting the planet, and ensuring all people enjoy peace and prosperity,” said Michael Armstrong, FCA, ICAEW, Regional Director for Middle East, Africa, and South Asia, in response to a question about the topic. “We recognise that this is a very challenging goal and commend the UAE for taking the effort to actively develop a framework for achieving the SDGs.”
The goal of the United Arab Emirates (UAE) ambitious 2030 economic strategy is to transform the country into a knowledge-based, highly competitive economy. According to this view, accounting companies are vital to the country’s growth since they offer individuals and businesses the financial services and knowledge they need. The substantial contributions Dubai’s accounting firms make to realise the UAE’s Economic Vision 2030 will be discussed in this blog.
Advantages of Accounting Firms in UAE
In the UAE, accounting offers numerous benefits for businesses –
- Compliance: By complying with local regulations and international accounting standards, companies can avoid legal penalties and demonstrate their commitment to transparency and accountability. This fosters legal stability and enhances investor confidence, as stakeholders trust that the company’s financial practices align with industry best practices.
- Financial Insight: Accurate financial reporting serves as a strong base for informed decision-making and planning regarding the business’s financial performance, cash flow, and profitability. This enables management to identify strengths, weaknesses, opportunities, and threats and make data-driven decisions that align with the company’s objectives and maximise long-term success.
- Tax Optimisation: The UAE’s tax framework can be complex, with several regulations and tax laws governing business operations. Accounting firms with expertise in taxation play a crucial role in developing the UAE economy. With an extensive knowledge and understanding of tax regulations, accounting firms help businesses minimise their tax liabilities while maximising profitability. The process usually involves understanding tax deductions, credits, and incentives and structuring transactions tax-efficiently, contributing to the company’s and economy’s growth.
- Growth Support: Accounting services also actively support business growth and development. Accounting firms are trusted advisors, providing tailored solutions to address specific business needs and challenges. They usually offer strategic advice on expansion plans, mergers and acquisitions, risk management strategies, and capital optimisation techniques.
Economic Development Vision of UAE 2030
The vision outlines several important goals to be accomplished by 2030, including –
- Economic Diversification: The United Arab Emirates seeks to broaden its economy by fostering industries other than oil, including manufacturing, tourism, banking, and technology. Thanks to this diversification, the population of Emiratis will benefit from these new career opportunities and income streams.
- Sustainable Development: The goal strongly emphasises environmentally friendly behaviors and sustainability. To secure a sustainable future, the UAE seeks to lower carbon emissions, increase energy efficiency, and invest in renewable energy sources.
- Enhanced Competitiveness: The UAE hopes to become a more attractive destination for foreign investors by making conducting business easier by encouraging innovation and entrepreneurship. These initiatives aim to improve the business climate and draw in additional foreign investment.
- Human Capital Development: The goal is to create a workforce with a high level of productivity and skill. The UAE intends to fund educational and career-training initiatives to give its labour force the tools it needs to prosper in a knowledge-based economy.
How Accounting Firms Contribute to National Development?
Here’s how accounting firms contribute to national development in the UAE –
Improving Transparency and Financial Reporting
One of accounting firms’ main responsibilities is ensuring accurate and transparent financial reporting. Hence, they strive to improve financial governance and accountability in accordance with the UAE’s Economic Vision 2030. These companies assist companies in enhancing their financial reporting, making it more transparent and easily accessible by implementing international accounting standards. This encourages economic growth, foreign direct investment, and investor confidence.
Assisting Small and Medium-Sized Businesses (SMEs)
Dubai’s Accounting businesses are essential to SMEs’ expansion since they help them comply with regulations, offer financial guidance, and provide accounting services. They help SMEs build strong financial systems, optimise tax tactics, and manage their finances. By doing this, accounting firms support SMEs’ expansion and sustainability, which promotes economic diversification and job possibilities.
Enhancing Innovation in Technology
Accounting companies are leading the way in adopting new technology in the digital era. Recognising the value of innovation, the UAE’s Economic Vision 2030 seeks to position the country as a global centre for several industries, including technology and finance. Cloud computing, AI, and data analytics are just a few of the technology accounting services in Dubai used to improve productivity, accuracy, and real-time financial insights. These developments promote economic growth, simplify operations, and assist companies in making well-informed decisions.
Encouraging Global Investment and Trade for Sustainable Development
Due to its advantageous location, the UAE has established itself as a significant trading hub linking numerous international markets. Accounting firms provide assurance and advising services to companies engaged in cross-border transactions, which is critical in promoting global trade and investment. These companies ensure that tax laws, financial reporting obligations, and international accounting standards are followed. By doing this, accounting firms help stimulate economic growth, trade network expansion, and foreign investment.
Enhancing Risk and Financial Management
Accounting firms also improve enterprises’ financial and risk management procedures as part of the UAE’s Economic Vision 2030. Chartered accountants in Dubai assist businesses in making wise decisions and managing uncertainty by offering professional guidance on financial planning, budgeting, and risk mitigation techniques. This encourages sustained growth and development and adds to the economy of the United Arab Emirates’ overall resilience and stability.
Conclusion
Accounting companies are essential to the UAE’s Economic Vision 2030. They contribute substantially to the country’s development through their knowledge of financial reporting, assistance for SMEs, technical innovation, facilitation of international trade, and reinforcement of financial and risk management procedures. To realise the UAE’s Economic Vision 2030 and position the country as a competitive global economy, auditors in Dubai are essential collaborators. Accounting businesses will continue to be vital to the UAE’s economic development and long-term sustainability by adopting technological improvements and remaining flexible in response to shifting market conditions.
MBK Auditing offers various services that align with the objectives of the UAE’s Economic Vision 2030. With our VAT-compliant accounting services in Dubai, audit services, corporate finance solutions, financial management advisory, and business consulting services, MBK Auditing can assist companies in supporting the UAE’s Economic Vision 2030 goals and helping the country develop.
Reach out to us right now to discuss your accounting needs!
