UAE’s public spending totalled Dhs87.4 billion in first quarter

The UAE’s public spending in the first quarter of 2022 totalled Dhs87.4 billion, an increase of 19.6 per cent and equivalent to Dhs14.34 billion, compared to Dhs73.7 billion in the same period of the previous year, according to statistics from the Ministry of Finance.

The figures also highlighted the fact that the country’s public spending in the first quarter of 2022 included some Dhs28.7 billion for employee compensation payments, compared to Dhs24.6 billion in the same reporting period in 2021, an increase of 16.6 percent and equivalent to Dhs4.1 billion.

Employee compensation is the sum of cash and in-kind rewards payable to government employees, which include wages or salaries, allowances, bonuses and other benefits, as well as social contributions paid to social insurance programmes on behalf of employees.

Furthermore, the public spending included goods and services usage worth Dhs30.9 billion, as well as Dhs14.1 billion for social benefits, Dhs6.4 billion for financial aid, Dhs1.7 billion for interest, Dhs1.6 billion for fixed capital expenditure, Dhs304 million for grants, and Dhs3.8 billion for other expenses.

The statistics also showed that revenues amounted to Dhs123.8 billion in the first quarter of 2022, an increase of 39.1 per cent or equivalent to Dhs34.8 billion, compared to Dhs88.9 billion in the same period of 2021.

The distribution of first quarter revenues included taxes on companies extracting oil and producing natural gas, banks operating in the country, customs fees, and other fees worth Dhs56.7 billion, while social contributions amounted to Dhs4.9 billion and other revenues to Dhs62.2 billion.

The Ministry of Finance said the government’s financial statistics are reports of national and international interest, as they highlight the total value of government operations in the country, as well as the government sector’s contribution to the national economy and the allocation of resources by the government for various purposes.

Meanwhile, the Ministry of Foreign Affairs and International Corporation (MoFAIC) and Etihad Credit Insurance (ECI), the UAE’s federal export credit company, have signed a Memorandum of Understanding (MoU) to promote increased global trade and investment.

Both entities agreed to work together to position the UAE as an ideal destination for trade and investment, highlighting its stable and secure environment, investor-friendly legislation, and advanced trade finance infrastructure.

The MoU sets out a framework for MoFAIC to facilitate trade and investment meetings through its diplomatic missions abroad and offer office space in various missions for Etihad Credit Insurance’s seconded employees. It also outlines the Federal Export Credit company’s role in providing trade finance support to businesses and organisations, delivering expert advice on political and commercial risks and facilitating training workshops on investment.

Dr Abdulnasser Alshaali, Assistant Minister for Economic and Trade Affairs at MoFAIC, said, “Expanding trade and investment is of vital importance to the UAE’s future growth. We are looking forward to working closely with Etihad Credit Insurance to ensure that we support our national exporters and enhance trade and investment flows globally. I have no doubt that our cooperation will facilitate further development of a sustainable, diversified, and competitive knowledge economy.”

Massimo Falcioni, CEO of Etihad Credit Insurance, said, “Through commonly agreed-upon goals and objectives, this new agreement between the state-owned institutions will widen export-related opportunities between the UAE and other countries and will open the doors for the Federal Export Credit Company to substantially increase its support for local businesses to thrive in the overseas market.

“Etihad Credit Insurance continues to implement its mission to ensure that UAE non-oil exports and re-exports do not fail due to a lack of insurance or trade finance through its partnership strategy with key ministries, similar to the MOU signed with the Ministry of Economy (MOE) in 2018 and with the Ministry of Industry and Advanced Technology (MoIAT) in 2021.

“With Etihad Credit Insurance sharing its expertise in risk management and investments, this will boost the confidence of UAE businesses and strengthen partnership with MoFAIC in building deeper relations with other countries.”

Since its establishment in 2018, Etihad Credit Insurance has been developing strong bilateral trade relations to enhance opportunities for the country’s export sector. The UAE Federal Export Credit Company continues to implement its mission to ensure that UAE non-oil exports and re-exports are not unduly affected due to a lack of insurance or trade finance. As of 2022, Etihad Credit Insurance has signed 21 MoU with government export credit agencies worldwide and facilitated Dhs27 billion in non-oil exports from UAE-based companies to 110 countries.

Etihad Credit Insurance (ECI) was established by the UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah, and Ajman. The company started its operations in February 2018. ECI plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments, and strategic sectors development, in line with UAE Vision 2021 agenda and most recently with UAE Centennial 2071 Plan and Operation 300bn.

WAM