Gulf Today, Aug 9, 2022 | Muharram 11, 1444
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
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