The UAE recorded a 31.8% year-on-year rise in its revenue in 2022, while expenditures rose 6.1% to $116.3 billion (AED 427.1 billion), leaving a budget surplus for the year, according to an Emirates News Agency (WAM) report Sunday.
There was a moderate rise in expenditures last year as the government was cautious in increasing spending, which strengthened fiscal buffers, and the focus was on strategic projects, the agency report said, citing Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.
The rise in expenditure was $6.7 billion (AED 24.7 billion) compared to the previous year due to the government's cautious and rational approach, according to the minister.
The government’s expenditure policy is reflected in the doubling of the net acquisition of non-financial assets, registering an estimated 94.5% growth in 2022 compared to the previous year.
Besides, this reflects the role of these assets in achieving the oil-rich Gulf state's strategy in promoting economic diversification and reducing the impact of oil price fluctuations on the economy and government revenues.
The Arab region's second-largest economy has been taking bold measures to diversify its economy away from oil.
According to a research report by UBS Global Wealth Management early this month, the UAE economy is projected to grow by 3.5% this year and 3.9% in 2024, driven by strong demand for the Gulf state’s oil exports and energy investments.
The UAE, which plans to invest $163 billion in the clean and renewable energy sector over the next three decades, expects its non-oil sector to grow by 4.5% this year.
The UAE's non-oil trade rose 11.9% year-on-year to a record high of $337 billion (AED 1.24 trillion) in the first half of this year.
Through balanced fiscal planning, the UAE government aims to diversify the local economy, enhance non-oil government revenues, and diversify sources of government revenues, in addition to adopting financial reforms to improve the business environment and attract valuable foreign investments,” said Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs.
