UAE government’s operating surplus doubles thanks to oil price surge

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UAE
  • Date: 08-Aug-2022
  • Source: Khaleej Times
  • Sector: Economy
  • Country: UAE
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UAE government’s operating surplus doubles thanks to oil price surge

By Reuters Published: Mon 8 Aug 2022, 2:42 PM

The UAE government’s net operating surplus more than doubled in the first quarter to Dh36.4 billion ($9.9 billion) as surging oil prices boosted public revenue, finance ministry data showed on Monday.

High oil prices and increased production have been a boon for the UAE’s economy this year, along with a continued recovery from the pandemic’s impact.

Government spending in the UAE rose to Dh87.4 billion from Dh73.1 billion in the first quarter of 2021, a nearly 20 per cent rise.

Revenue jumped 39 per cent from a year earlier to Dh123.8 billion in the first quarter, the data showed.

The UAE’s net operating surplus was up 128.7 per cent from Dh15.9 billion in the first quarter of last year.

The UAE in October approved a Dh58.9 billion federal budget and in June proposed Dh1.23 billion in additional spending. The federal budget is just a fraction of state spending as individual emirates, such as Abu Dhabi and Dubai, also have their own budgets.

Spending on compensation of government employees in the first quarter rose 16.6 per cent year on year to Dh28.7 billion. Social benefits expenditure was up 7.4 per cent to Dh14.1 billion. — Reuters