UAE Sees Balanced 2015 Budget Despite Oil Price Fall

The UAE on 12 October approved its 2015 federal budget. The budget is balanced, with both spending and revenue projected to increase by 6.3% to Dh49.1bn ($13.4bn at the fixed $1=Dh3.6725 exchange rate) from Dh46.2bn in 2014. With inflation projected at 2.5% in 2015 by the IMF, the net increase in federal spending in real terms would be just under 4%. While this is a touch less than the IMF’s latest UAE growth projection – ie the budget as a share of GDP is set to ease – this benign outlook could quickly change if the recent fall in oil prices (see p20) continues or, indeed, intensifies. (CONTINUED - 748 WORDS)