UAE government revenue rose by about 7 per cent in the fourth quarter of 2022 as the Arab world’s second-largest economy continues to rebound from the coronavirus pandemic on the back of government initiatives and higher oil prices.
Total revenue for the three months to the end of December climbed to Dh143.1 billion ($39 billion), the Ministry of Finance said on Thursday.
Tax revenue surged 29 per cent to Dh75 billion while revenue from social contributions rose more than 11 per cent to Dh3.9 billion.
Business activity in the UAE’s non-oil private sector economy grew at its strongest pace in four months.
The seasonally adjusted S&P Global purchasing managers’ index reading climbed to 54.3 last month, up from 54.1 in January, well above the neutral 50 mark that separates growth from contraction.
Government expenditure during the three-month period decreased to Dh120.3 billion, from Dh136.2 billion during the same period in the previous year, the preliminary data shows.
Current expenditure also fell to Dh111.2 billion in the fourth quarter, from Dh127.9 billion in the same period in 2021. It consists of workers’ wages, costs associated with the use of goods and services, the consumption of fixed capital, paid interest, subsidies, grants, social benefits and other transfers.
The UAE economy was projected to grow by 7.6 per cent last year, the highest in 11 years, driven by the oil and non-oil sectors, after expanding by 3.8 per cent in 2021, according to the Central Bank.
The country’s economy is projected to grow 3.9 per cent in 2023, according to the regulator.
First Abu Dhabi Bank forecasts hydrocarbon and non-hydrocarbon real gross domestic product growth of 5.4 per cent and 4.7 per cent, respectively, for the economy of the Emirates this year.
Emirates NBD expects GDP to grow by 3.9 per cent in 2023, well ahead of the World Bank’s global growth forecast of 1.7 per cent.
The UAE economy continues to withstand global headwinds and is expected to achieve 4.2 per cent in non-oil economic growth by the end of this year, Mohamed Al Hussaini, Minister of State for Financial Affairs, said during a meeting of G20 finance ministers and central bank governors in Bengaluru, India, last month.