UAE cuts federal budget for 2021

Tuesday, 03 November 2020 17:50:35 (GMT+3)   |   Istanbul

Following a subdued economic performance in the current year severely impacted by Covid-19 and in particular low oil prices, the UAE lowered its federal spending for 2021.

Accordingly, on Sunday, November 1, the cabinet of the UAE approved the 2021 federal budget at AED 58 billion ($15.8 billion), reducing expenditure next year by 5.5 percent compared to the current year’s budget, which is the highest one in the country's history. “The UAE economy will be among the fastest to recover in 2021, and the government has dealt with the 2020 budget efficiently and has all the tools to continue its financial and operational efficiency in 2021. The government will continue to implement major projects and focus on social development sectors, despite the global economic conditions,” according to a statement from Sheikh Mohammed bin Rashid, the UAE vice-president and prime minister and ruler of Dubai.

The UAE economy is expected to contract 6.6 percent this year and to recover by 1.3 percent in 2021, SteelOrbis has learned from International Monetary Fund data.

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