Due to the growing revenues and high returns for the UAE's non-oil economy, the UAE government is delighting its citizens and residents on its land with this good news, as indicators of the non-oil economy have jumped to record indicators, compared to the last three years, and here are all the details.
For some time now, the UAE has been constantly diversifying its sources of income, away from a focus on Emirati oil economics, by increasing Emirati non-oil revenues through many strong economic reform programs in the UAE.
Based on an analysis from the Reports Unit, which was based on the data of the UAE Ministry of Finance, the UAE economic reform programs succeeded in doubling non-oil revenues during the first four years in which the UAE economic reform program was implemented.
Which has achieved 1.05 trillion UAE dirhams during this period, compared to about 512 billion UAE dirhams during the last four years before the reform process in the UAE.
And based on this detailed report on the UAE’s jumping economy in the recent period, so that these figures show that there is a high jump in UAE non-oil revenues, reaching 105 per cent, which is more than double. The UAE jump has achieved an increase of about 538 billion UAE dirhams over the period. That preceded the reform of the UAE economy.
Hence, the UAE non-oil revenues reached a leap that might be expected during the past year, by about 315 billion UAE dirhams, which equals more than three times the annual average of the last ten years before the UAE economic reform process, which amounts to about 101 billion UAE dirhams annually.
Also, the share of Emirati non-oil revenue in the total Emirati revenue as a whole during the past year rose to thirty-four percent, compared to the average of twelve percent during the last ten years that preceded the UAE reform, which means that its share of the state’s revenues has nearly doubled double .
Through this significant development in Emirati non-oil revenues, it has funded about thirty percent of federal government expenditures in the past year, compared to an average of three percent during the last ten years before the launch of the UAE reform, which means that its contribution to financing expenses increased more than Weakness for small and micro projects, which are in the interest of the Emirati citizen primarily.
This report on the UAE economy has been expected expenditures during the past year, amounted to about 1.05 trillion UAE dirhams, while the average annual expenditures were the last ten years before seeing the UAE to about 751 billion dirhams.
On this track, the UAE’s expected non-oil revenues in the UAE budget during the past year recorded a record level of approximately 315 billion UAE dirhams.
Which is equivalent to about thirty-four percent of the total revenues of the country amounting to nine hundred and seventeen billion UAE dirhams, while oil revenues amounted to about 602 billion UAE dirhams equivalent to sixty-six percent of the total UAE revenue.
Hence, UAE non-oil revenues increased during the past year, by seven percent, equivalent to about twenty one billion UAE dirhams, compared to the levels of the previous year, which amounted to 294 billion UAE dirhams, and it had increased in 2019, by ninety-nine percent , An increase of about 149 billion UAE dirhams from levels in previous years for the awakening of the UAE economy.
As the rise of Emirati non-oil revenues is mainly due to the continued implementation of Emirati economic reform programs, including value-added tax, as well as energy price correction and rationalization of consumption, and according to the UAE Ministry of Finance, the government in the Emirati only last year implemented a number of initiatives to develop and diversify revenue Non-oil to ensure the sustainability and stability of Emirati revenues.
Including, for example, reducing the mandatory registration threshold for value-added tax for citizens in the Emirates, and gradually increasing the accredited increase for the financial compensation for expatriates in the Emirates, as well as improving mechanisms and control procedures for the collection of revenues for projects that are established in the Emirates.
Hence the selective tax in the UAE was applied to sweetened drinks in the month of December of last year, which also aims to reduce the consumption of sweetened drinks to preserve the general health of Emirati citizens.
As the UAE's non-oil revenues include about 203 billion UAE dirhams from taxes, and 112 billion UAE dirhams from other sources as a result of economic reform programs as well as energy price correction, according to the Ministry of Finance in the UAE, it is expected that tax revenues for the past year will be about 203 billion UAE dirhams.
It came with a noticeable increase of about 20.5% compared to 2018, and it is expected to increase by 10.5% compared to the estimate in the UAE budget approved last year.
This is expected to record taxes on income, profits and capital gains in the UAE about 16 billion UAE dirhams, a decrease of 2.9 percent compared to last year, due to the collection of non-recurrent amounts in the year before last, and is expected to increase by 1.8 percent during the year The past, compared to the estimated budget in the UAE, as a result of improved economic activity in the UAE.