• Hessa Buhumaid said fuel and shopping subsidies would begin on July 5, 2022, while household payments and other measures will be introduced in September 2022. Khushnum Bhandari / The National
    Hessa Buhumaid said fuel and shopping subsidies would begin on July 5, 2022, while household payments and other measures will be introduced in September 2022. Khushnum Bhandari / The National
  • Emiratis on lower incomes will receive a subsidy on the petrol they purchase. This effectively means a 85 per cent discount on any petrol that costs more than Dh2.1 per litre - the current price is about Dh4.6 per litre. Sarah Dea/ The National
    Emiratis on lower incomes will receive a subsidy on the petrol they purchase. This effectively means a 85 per cent discount on any petrol that costs more than Dh2.1 per litre - the current price is about Dh4.6 per litre. Sarah Dea/ The National
  • Monthly support payments will help Emiratis to absorb the cost of living. Jaime Puebla / The National
    Monthly support payments will help Emiratis to absorb the cost of living. Jaime Puebla / The National
  • Emiratis on household incomes lower than Dh25,000 will receive a further subsidy on energy costs. Photo: PA
    Emiratis on household incomes lower than Dh25,000 will receive a further subsidy on energy costs. Photo: PA
  • University fees will be subsidised to encourgage Emirati children to study further. Pawan Singh / The National
    University fees will be subsidised to encourgage Emirati children to study further. Pawan Singh / The National

UAE's Dh28bn cost-of-living support package helps 47,000 Emirati families in first month


Chris Maxwell
  • English
  • Arabic

A Dh28 billion ($7.6bn) social welfare programme launched last month has delivered vital assistance to more than 47,000 limited-income Emirati families to pay for essentials including fuel, food and utilities.

The initiative announced by President Sheikh Mohamed on July 4 uses subsidies to address the effects of inflation rises and increases in the cost of living.

Led by the Ministry of Community Development, the fund provides help with housing, food, fuel, electricity and water. It also offers temporary financial support for unemployed citizens over the age of 45.

Sheikh Mohamed said the existing social support programme for citizens would be restructured to raise annual financial assistance from Dh2.7bn to Dh5bn.

The total social support budget has been doubled from Dh14bn.

The initiative sets out a series of allowances for Emiratis, which also cover accommodation, university education and support for job seekers.

Emirati families whose household income is up to Dh25,000 a month are eligible.

The ministry said on Sunday that financial support had been given to 47,300 families across the nation to raise living standards for those on limited incomes.

The ministry approved the distribution of the fuel subsidy, overseen by the Abu Dhabi National Oil Company, in mid-July with food subsidies being provided in partnership with Lulu Hypermarkets since August 5.

The value of food subsidies is linked to the change in inflation rates for basic food items, state news agency Wam reported.

Electricity and water subsidies will be paid to those in eligible categories in line with the inflation allowance in September.

Social welfare applications can be submitted through the ministry's website. Registrations are made using an applicant's Emirates ID or the UAE Pass app.

Why is the welfare funded needed and who benefits?

Nationwide, inflation was up 3.3 per cent in the first quarter of 2022 compared with the previous year, official figures show.

In Dubai, consumer inflation rose to 4.6 per cent in April year-on-year, Emirates NBD said, It was the highest rise since 2015.

Food prices were 8.6 per cent higher year-on-year, the bank said, while fuel and average rents rose significantly.

Fuel subsidies

The initiative aims to mitigate the effects of rising fuel costs, providing an 85 per cent discount on fuel prices above Dh2.10 a litre.

The head of the family will receive this monthly subsidy on up to 300 litres, while a working wife receives an additional 200 litres. The head of the family will be granted 400 litres if the wife does not have employment.

Electricity and water

Eligible Emiratis will be granted a 50 per cent subsidy for electricity consumption of less than 4,000 kilowatts, and a 50 per cent monthly water subsidy for water consumption below 26,000 gallons.

Food supplement allowance

The government will bear 75 per cent of food price inflation costs for lower income Emiratis “to meet their living requirements and provide them with a decent life", Wam reported.

Updated: August 08, 2022, 7:03 AM