IMF Advises U.A.E. to Cut Energy Subsidies as GDP Growth Slows - Bloomberg

IMF Advises U.A.E. to Cut Energy Subsidies as GDP Growth Slows - Bloomberg:

"The United Arab Emirates may need to reduce energy subsidies to help mitigate risks of fluctuating oil prices and allow Dubai to cut its debt, the International Monetary Fund said.
Subsidies in the second-biggest Arab economy, which holds about 6 percent of the world’s proven oil reserves, accounted for 5.5 percent of gross domestic product in 2012, IMF estimates show. Abu Dhabi and Dubai, the country’s two biggest emirates, are planning a gradual “consolidation in their non-oil balances through 2017,” the fund said.
“Fiscal consolidation will be driven by restraint in capital expenditure in the context of solid economic growth,” the IMF said. “It should also be supported by reductions in energy subsidies, which would create fiscal space while improving energy efficiency.”"

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