UAE federal budget records Dhs9.75bn surplus in H1 2020

The total spending of the UAE federal government amounted to Dhs24.9bn by the end of Q2 2020, according to a Budget Execution Report released by the Ministry of Finance on Monday.

The federal government’s total revenues meanwhile were reported to be Dhs34.7bn.

Therefore, the total budget surplus stands at around Dhs9.75bn, reported official news agency WAM.

A further breakdown revealed that the budget surplus by the end of Q1 was Dhs1.8bn, whereas by the end of Q2 it rose to Dhs7.95bn.

The finance ministry’s revenues for the quarter ending June hit Dhs19.451bn, while those of the Ministry of Human Resources and Emiratisation (MOHRE) were reported at Dhs1.9bn and that of the Ministry of Infrastructure Development was Dhs5.4bn.

In terms of expenses, the Ministry of Education spent Dhs2.97bn, while the Ministry of Health and Prevention’s total expenditure reached Dhs2.12bn as it worked to combat the Covid-19 pandemic.

The Ministry of Community Development spent Dhs1.5bn; MOHRE spent Dhs362.4m and the Ministry of Infrastructure development had expenses amounting to Dhs295.4m.

In October 2019, the UAE cabinet approved the federal budget of Dhs61bn with zero-deficit for 2020.

Read: UAE to hike 2020 federal budget by 2%

The general federal budget for 2019 stood at Dhs60.3bn and marked an increase of around 17.3 per cent over its 2018 budget.

One-third of the 2020’s Dhs61bn federal budget was set aside to be allocated to the social development sector.

Earlier this month, the Dubai government issued a 10-year Islamic sukuk of $1bn at a profit rate of 2.763 per cent and 30-year government bonds of $1bn at an interest of 3.90 per cent.

Read more: Dubai issues $2bn in sukuk and bonds at lowest ever interest rate

The neighbouring emirate of Abu Dhabi too issued a $5bn multi-tranche including a $2bn, 3-year offering; a $1.5bn 10-year bond; and a $1.5bn 50-year bond.

Read also: Abu Dhabi issues $5bn multi-tranche, 50-year bond

Abu Dhabi remains the only AA-rated sovereign issuer by all three rating agencies in the GCC region.