Subsidies

Fuel Price Hike in the UAE

In July 2015, the UAE announced that, effective from August 1, 2015, it was moving from a system of fixed and subsidized fuel prices to a system of adjusting prices monthly, in line with global price trends . Though the exact details of the pricing formula were not released, it was made clear that the prices would be based on the average global prices, along with the addition of operating costs. In effect, the price of petrol would register an...

Fast Tracking Reforms in the UAE through Spending Cuts

A report released by the UAE central bank towards the end of July 2015 indicated that the government is likely to cut spending by 4.2% in the fiscal year of 2015. According to the report, consolidated government spending is expected to decline to Dh460.6bn ($125.5 bn), from Dh480.8bn ($131 bn) in 2014. It is notable that the projected spending cut is the first such instance in 13 years. Many analysts pin the reason for the spending cut on the recent...