UAE squeezes federal spending - FT.com

The government of the United Arab Emirates will increase spending next year by less than forecast inflation while other oil-rich Gulf states such as Qatar and Saudi Arabia hike outlays to boost living conditions.

The UAE said on Wednesday that it was boosting federal spending by Dh1.1bn ($300m) to Dh41.8bn, a meagre increase of 2.6 per cent, according to the official WAM news agency.

The federal budget, which covers spending across the seven emirates which make up the UAE, is generally overshadowed by the budget of Abu Dhabi, the oil rich capital, which is not published on a regular basis. Abu Dhabi’s expenditure plans last year were five times larger than federal spending this year.

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