The state of the economy of the United Arab Emirates
The UAE is making good progress in maintaining its economic growth. According to Abdullah bin Touq Al-Marri, the UAE hopes the economy will grow by 5% to 6% in 2022 as it recovers from the pandemic and at the same pace over the to help 1. The non-oil economy has benefited from public spending, growth credit and improved sentiment. Business, hosting Dubai Expo also boosted tourism. The International Monetary Fund (IMF) expects the UAE's economic growth to accelerate to 4.2% in 2022.
The Supreme Council of the UAE Federation elected Sheikh Mohammed bin Zayed Al Nahyan as its new president in May 2022, consolidating his rule over the emirate and a major regional player. The council, which includes the rulers of the seven emirates in the federation of Emirates, Sheikh Mohammed, was elected after the death of President Sheikh Khalifa bin Zayed Al Nahyan. Sheikh Mohammed's rise as the third President of the United Arab Emirates marks another defining moment for the nation that has just completed 50 years of astounding growth. The United Arab Emirates has drawn up a plan to achieve its dream of becoming "the best country in the world" by 2071, when it will complete the 100th anniversary of the country's founding.
There is no doubt that Expo 2020 has raised the profile of Dubai and the UAE as the government and the private sector have spent billions of dollars on it. Economists expect the domino effect of the recently concluded Expo 2020 Dubai to be very successful in 2022 and 2023 in the form of strong foreign direct investment in
tourism and hospitality. Priority will be given to diversifying and strengthening the business environment, but hydrocarbons will remain central to the economy.
The most prominent features of the federal budget of the United Arab Emirates for the year 2022
The UAE has approved a federal budget of $16.04 billion for 2022, according to the Ministry of Finance. The budget allocates $6.59 billion for development and social benefits, $5.85 billion for general government affairs, and $267 million for federal projects. The federal budget is only a fraction of consolidated government spending in the UAE, as individual emirates such as Abu Dhabi and Dubai have their own budgets. However, it is an indication of the official plans for the economy. The ministry said that $0.63 billion has been allocated for infrastructure and $0.65 billion for financial investments.
The UAE Cabinet approved the state's federal budget for a period of five years from 2022 to 2026, with a total expenditure of $79 billion, during the Cabinet meeting at the UAE Pavilion at the Expo. Most of the spending goes to development and social benefits. The largest share of the 2022 budget has been allocated to the development sector and social benefits at 41.2%, of which 16.3% is for education, 6% for social development, 8.4% for health, 8.2% for pensions, and 2.6% for other services. . 3.8% of the budget is allocated to the infrastructure and financial resources sector.
With spending down slightly in 2022, the budget indicates a modest decrease in fiscal support at the federal level as the economy recovers from the COVID-19 crisis and a similar level of spending appears likely over the next five years, according to Scott Livermore, economist advisor to ICAEW and chief economist for ICAEW . Oxford Economics. The Emirates Council for Infrastructure and Housing was also formed, headed by Minister of Energy and Infrastructure Suhail Al Mazrouei, and aims to unify federal and local housing efforts, and coordinate road and infrastructure projects, urban and residential construction. UAE road map.
Dubai plans to spend 9% of total spending in 2022 on infrastructure projects while 2% will be kept as private reserves. With regard to sectoral allocations, 42% of spending will be directed to the economy, infrastructure and transportation sectors, while 30% will be allocated to the social sector. The new budget supports the emirate's efforts to stimulate its macroeconomy and the goals of the Dubai Strategic Plan 2030.
An overview of the construction industry in the United Arab Emirates
. According to ResearchAndMarkets, the construction industry is then expected to expand at an annual rate of 3.8% between 2022 and 2025.