The UAE government recorded a fiscal balance surplus in 2022 as revenues grew at a staggering 31.8 per cent, supported by high oil prices, increased tax revenues and strong growth in almost all the key sectors of the economy.

The fiscal performance analysis for 2022 released by the Ministry of Finance on Sunday showed an increase in tax revenues on the back of streamlining and digitising tax procedures and intensification of tax awareness campaigns which increased the efficiency of tax collection.

“We remain steadfast in fulfilling the directives of our visionary leadership by implementing innovative fiscal policies and executing transformative projects that create stronger fiscal buffers to mitigate the impact of global financial fluctuations,” said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE.

Sheikh Hamdan said that fiscal policy enhanced economic growth and the competitive business environment, which resulted in the UAE’s ranking as the fastest-growing economy in 2022.

The UAE economy grew 7.9 per cent in 2022 with almost all the sectors expanding at a strong pace, taking the country’s GDP at constant prices to Dh1.86 trillion at current prices, an increase of more than Dh337 billion compared to 2021.

In addition, the high oil prices also boosted government revenues as the Russian-Ukraine conflict last year pushed crude prices to a multi-year high.

The Ministry of Finance said other revenue also grew by Dh19.33 billion in 2022. Social contributions increased from Dh13.55 billion in 2021 to Dh14.92 billion in 2022.

Importantly, this surplus will allow for stronger fiscal buffers to mitigate the impact of potential financial risks.

The Ministry further explained that 2022 witnessed a 94.5 per cent growth in non-financial asset acquisition, a testament to the UAE’s push towards revenue diversification and reducing the impact of oil price fluctuations on the government revenues and the local economy.