Unfair Gaps🇦🇪 UAE

Executive Offices Business Guide

3Documented Cases
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All 3 Documented Cases

تأخر تنفيذ الميزانية وتكاليف الفرصة المفقودة

Estimated AED 50–200 million in deferred CAPEX annually; 1,500–3,000 hours of manual budget review work per federal entity per cycle

Budget Formulation delays prevent timely resource allocation. Federal entities spend Q1 preparing drafts, Q2-Q3 waiting for Cabinet/FNC reviews, reducing actual execution to Q4 only. Unused budget allocations create opportunity costs and project deferrals.

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فشل الامتثال للضريبة على الشركات والعقوبات المالية

Estimated FTA penalties: AED 50,000–500,000 per entity per audit cycle; 200–400 manual reconciliation hours per entity annually

Budget preparation process does not systematically integrate Corporate Tax rules. Manual tax calculations post-budget approval create timing mismatches, profit allocation errors, and transfer pricing documentation gaps. FTA audits discover these failures months later, triggering penalties and interest.

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أخطاء تخصيص الميزانية وسوء استخدام الموارد

Estimated AED 200–500 million in suboptimal allocations annually (2–5% of federal budget waste); 300–500 hours of misaligned review work per entity per cycle

Budget formulation relies on historical spending patterns and subjective ministry requests, not real-time performance data (KPIs). Cabinet reviewers lack visibility into which programs deliver ROI. Inefficient programs persist across budget cycles due to inertia.

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