UAE posts fiscal surplus, revenue up 31.8% in 2022

Dubai: The UAE recorded an overall fiscal surplus in 2022, with a 31.8 per cent year-on-year growth in revenues, and a 6.1 per cent increase in expenditures, which amounted to approximately Dh427.12 billion, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said on Sunday.

The strong fiscal performance and diversified government revenues reflect the country’s efficient fiscal policy, he added.

Expenditures went up moderately during 2022, with an increase of Dh24.74 billion compared to 2021, as a result of the government’s commitment to spend cautiously and rationally, strengthen fiscal buffers, and focus on strategic investments and projects.

Net acquisition of non-financial assets doubled, achieving an estimated growth of 94.5 per cent in 2022 compared to 2021.

The year 2022 saw an increase in tax revenues, reflecting the recovery of economic activity in the country, in addition to the results of streamlining and digitising tax procedures, which contribute to improving the efficiency of tax collection.

Other revenue also grew by Dh19.33 billion in 2022. Social contributions saw an increase from Dh13.55 billion in 2021 to Dh14.92 billion in 2022.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said: “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. The government also seeks to increase spending effectiveness by keeping pace with institutional developments and adopting best practices. The government’s implementation of the vision of the wise leadership has resulted in the recovery of the national economy and returning to normal growth in post pandemic era. This motivates us to boost our efforts to achieve sustainable growth.”