CAIRO - The United Arab Emirates will allow government entities to create their own development funds, the state news agency said on Tuesday, citing an announcement by Dubai's ruler and prime minister Sheikh Mohammed bin Rashid Al Maktoum.

The goal of the policy is to increase the productivity and flexibility of government work, the agency said.

During the meeting the government also approved a request to begin testing self-driving cars on the country's roads, becoming the first country in the Middle East and the second worldwide to adopt the procedure.

(Reporting by Lilian Wagdy; Editing by Catherine Evans)