Buy custom Sources of Income in Abu Dhabi essay

Introduction

Sources of Income and Patterns of Expenditure in the US

Sources of revenue of the US federal government are less versatile than one would expect. The share of tax revenues in the overall budget of the country fluctuates at the level of 90%. The sources of federal revenues include:

  • Personal income tax is responsible for nearly half of all revenues and constitutes roughly 10% of the country’s GDP;
  • Social security tax is the second largest source of the country’s income and brings it nearly 35% of all money;
  • Corporate tax is responsible for as much as 10% of the federal government’s total income;
  • Excise and customs duties, inheritance and gift taxes etc.

Customs duties as well as multitudinous other sources yield the US federal government much less profits than those generated by the tax collection. The Congress intends to augment the share of customs duties in the budgetary income in the nearest future due to the growing import. However, it is unclear whether these ambitious plans will reach the fruition, because the US has to fulfill its obligations of the gradual tariff reduction.

Healthcare programs Medicare &Medicaid constitute the soft underbelly of the American budget. As of 2013, the US government spends nearly $818 billion on medicine annually (Bradley & Taylor, 2013). In juxtaposition to the expenditures of 2002, this sum has doubled. Furthermore, it is expected that the healthcare spending will have increased to $1,22 trillion by 2018 (Bradley & Taylor, 2013). The Social Security Administration (SSA), which pays out allowances, such as disability benefits and black lung benefits, is another article of expenditure that threatens to hemorrhage the American budget. The catchment area of this department constitutes nearly 60 million people and is constantly growing. As of 2013, the SSA spends $775 billion every year. By the same token, the White House allocated roughly $550 billion to cover the employment benefit, food stamps, and other programs of assisting the destitute in 2012. On the whole, $2,35 trillion were allocated to satisfy the needs of the American people in 2012, which constitutes 65% of the overall federal spending (Bradley & Taylor, 2013). Curiously enough, in 2011, Uncle Sam spent $712 billion for the military and defense purposes. Any other country in the world does not have such a huge military budget. It should be noted also that the US also earmarks huge sums of money for the R&D and innovations, but they are outshined by those allocated for medicine and military purposes.

Sources of Income and Patterns of Expenditure in the UAE

First of all, it should be noted that the sources of income and articles of expenditure in the US on the one hand and the United Arab Emirates, hereinafter referred to as the UAE, on the other, vary greatly because of the different forms of government in these countries. The US is a federal republic, while the UAE is an absolute monarchy. However, the greatest difference is due to the totally dissimilar geopolitical conditions in these countries. The economy of the UAE used to take comfort of the more or less solid revenues generated by the piscatorial industry, pearl fishery, agriculture and cattle-breeding in the days of yore. However, the situation changed beyond recognition in the early 1960s, when the first emirates began exporting oil (Peck, 1986). As the oil prices started to soar, revenue from oil bonanza leapfrogged over those from other spheres of economy in its contribution to the country’s GDP (Daniels, 1974). As of December 2013, oil sector still dominates the inexpugnable economy of the UAE. The country has tremendous resources of untapped, yet recoverable, oil. According to the figures promulgated in 2011, rich deposits of oil in the UAE amount roughly to 100 billion barrels, while those of gas exceed 6 billion cubic meters (Low, 2012). Provided that the pace of the current petroleum production does not change, these reserves will be sufficient to sustain normal functioning of economy for at least 150 years. Since 2011, oil-and-gas companies in the UAE have been extracting approximately 2,41 billion barrels of petroleum per day (Low, 2012).

The UAE is an active member of the Gulf Cooperation Council (GCC), which is preoccupied with the goal of resolving the region’s nettlesome economic issues. Specifically, the organization holds regular consultations and aspires to work out a common policy in the realm of trade, investment, banking business and finances, transportation and telecommunications, as well as a number of other spheres including the protection of intellectual property rights. The UAE plays one of the pivotal roles in this regional organization. The country has an open economy with a high per capita income and a considerable annual export balance of trade (King, 2008). Due to the high volumes of oil production and enormous trade surplus, the UAE occupies the sixth place in the list of the world countries with the most stunning millionaires-to-general population ratio.

Despite the fact that oil production has long been the linchpin of the country’s economic success, the determined efforts on the part of the Abu Dhabi government to diversify the sources of income reduced the share of oil and gas in the country’s GDP to 25% (Davidson, 2008). When the petroleum production began nearly 60 years ago, the UAE experienced a profound transformation from a farrago of desolate principalities dotted with squalid bidonvilles into a modern state with a high level of life. The government is constantly boosting outlays for the creation of jobs and betterment of the hitherto-rickety infrastructure (Bradfer, 2010). The recent governmental policies have opened up a cornucopia of opportunities for the private sector to entrench itself firmly in the economy. Curiously enough, the government has restricted foreign presence in commercial organizations to 49% in the territory of the UAE. However, there are some areas that have placed an interdict on the infusion of foreign capital into the country’s economy. Simultaneously, the whole panoply of special economic areas provide foreign entrepreneurs that have a vested interest in a certain sector of the country’s economy with the possibility to hold 100% of shares in certain enterprises. This latitude in one group of emirates and a little leeway that foreign companies enjoy in other emirates create a precarious, yet favorable, balance in the country’s economy. Another curious moment about the UAE is that taxes for the lion’s share of national companies, to the exclusion of banks, hotels and oil firms, exist in name only (King, 2008). In fact, it is a sort of hallowed tradition in the country that levies are not imposed on corporate and personal revenues. What is more important, the majority of other possible taxes are conspicuous by their absence in the country’s tax code.

The world financial crisis of 2008 in concert with the difficulties surrounding the process of borrowing money in the external markets and a drop in prices for assets had almost sent the economy reeling in 2009. The UAE government endeavored to lessen the negative effects of the spiraling crisis on the national economy by virtue of augmenting public spending and increasing liquidity in the banking business. Dubai was the first emirate to have grappled with the negative ramifications of the crisis due to the fact that it was exposed to the adverse impact of the falling prices for real estate. Due to the dearth of wherewithal to discharge its liabilities, Dubai became involved in a controversy aimed at proving its solvency. Central bank of the UAE together with Abu Dhabi bought out big shares in local banks (Davidson, 2009). In December 2009, Dubai received an additional credit package of $10 billion from Abu Dhabi (Bradley, 2010). The economy of the UAE, which embarked on a progressive transformation in the early 2010, is still recovering from the severe setback of 2008. For the time being, the UAE is preoccupied with the task of disenthralling national economy from the oil dependency as well as resolving the nettlesome issue of banishing a great number of foreign laborers from the monarchy and tackling the pressure of inflationary soaring of prices. The country’s strategic plan for the ensuing decade is aimed at the diversification and creation of great employment opportunities for the country’s residents by dint of ameliorating education system and encouraging employment in the private sector. The federal program of diversifying economy is being implemented by means of establishing new industrial clusters and developing the sphere of services. For instance, in 2012, tourism brought the UAE approximately $20 billion, which is roughly 6% of the country’s GDP.

Sources of Income and Patterns of Expenditure in Abu Dhabi

Throughout the course of the last few years, those at the helm of the already exuberant economic sector of Abu Dhabi have made remarkable strides in the petrochemical industry, steel smelting and aluminum sectors. At the same time, they have created a favorable climate, which is conducive to the build-up of investments in the industrial parks (Davidson, 2008). All these measures have been taken with the view of diversifying economy and, thus, stimulating its growth. The authorities expect that the emirate’s dependency on oil revenues could dwindle to nothing in the result of this prudent policy. According to the figures divulged by the Department of Abu Dhabi Municipality and Town Planning, more than $200 billion were earmarked for the development of infrastructure in 2013. Of these allocations, the state apparatus accounts for 40% while the private sector is to invest the rest of the sum planned. When confronted with the question of what is the pith and core of diversifying the economy of Abu Dhabi, a surprising variety of experts assert that there must be other sources of revenue that would support the emirate’s authorities, should the degradation in the value of oil take place (Low, 2012). Considering the current state of affairs in Abu Dhabi, the emirate will become a venue for a state-of-the-art deep-water port and a world-class rail-track in the nearest future. Undoubtedly, the juncture of sea-lanes, air corridors, superhighways, and railway tracks is going to boost both local and regional trade as well as to increase non-oil GDP of the emirate (Tatchell, 2009). This sector offers a profound analysis of the emirate’s sources of income. Table 1 provides a considerable insight into the emirate’s staples. Meanwhile, Table 2 shows the breakdown of the expenditures of the Abu Dhabi government, which constituted $68 billion in 2009.

Oil Revenues

Oil reserves in the UAE are truly unfathomable and constitute roughly 100 billion barrels, as mentioned before. In other words, nearly 10% of the world’s oil deposits lie under the vast terrain of this monarchy. What is more important, the lion’s share of these lavish resources are situated in the territory of Abu Dhabi (Fahim, 1998). Approximately 95% of the national energy bounty are hidden under the sands and waters of this emirate. Prospecting for petroleum in Abu Dhabi began in the early 1930s, when the ruler of this emirate reached the respective accommodation with the Middle East oil companies. The bulk of oil is extracted from the coastal oilfields, so as to ease the cumbersome export processes.

In October 2008, the Organization of Petroleum Exporting Countries (OPEC) set a quota of 2,562 million barrels on the production of oil in the UAE every day. In December of the same year, the organization decided that the monarchy should pump no more than 2,28 billion barrels of oil per day. This could not but administer a harsh blow against Abu Dhabi, which the country’s oil flagman. According to the Abu Dhabi National Oil Company (ADNOC), the extraction of hydrocarbons at the emirate’s main oilfield Murban fell by 15% in the first months of 2009 (Davidson, 2009). A number of other smaller oilfields also became subject to industrial retrenchments.

Due to the severe perturbations in the monarchy’s economy brought about by the global financial crisis, Abu Dhabi as well as other emirates experienced an unpleasant reduction of budget. As the situation remained unresolved and unstable, the emirate’s oil revenues waxed and waned. Pursuant to the resolution of OPEC extraordinary conference adopted in 2008, Abu Dhabi had to pump 250,000 barrels of oil per day less than it used to a few months ago. ADNOC notified its partners that it would fairly distribute the oil pumped between them. It is no wonder that oil revenues of Abu Dhabi decreased significantly in the wake of this landmark resolution. It is also interesting that the average price of a barrel of oil had been fluctuating between $94 and $141 throughout this turbulent period. In the early 2009, the average price of OPEC oil fell to a paltry $45 per barrel and remained at this level for nearly three months. Still, a phalanx of local experts opines that the economy of Abu Dhabi would not be floundering because of the reduction in oil production and degradation in the value of petroleum (Davidson, 2009). To corroborate this claim, they assert that the country had earned immense sums of money from the upward spiral in the cost of carbohydrates in the early 2008. Thus, the UAE received $89 billion in profits thanks to the oil export in 2008 (Low, 2012). Furthermore, oil prices started to rise in the early 2010, thereby lifting up the spirits of the Abu Dhabi government. It should also be noted that it is incumbent on Abu Dhabi, rather than on other emirates, to meet the assigned quota, for its oil reserves are 20 times bigger than those of Dubai, Sharjah and Ras al-Khaimah put together (Bradley, 2010).

Real Estate Sector

Abu Dhabi is duly considered to be the cultural center of the UAE (Abed & Hellyer, 2001). The Abu Dhabi government has been trying to transform the emirate into one of the major destinations for the affluent tourists from both the Middle East and the rest of the world. In order to undermine the influence of petrochemical sector on the emirate’s economy, as many as $200 billion are invested in the real estate and tourist sectors (Low, 2012). With the same aim, the authorities unveil recherché hotels and world-class museums. They realize that the time is ripe to develop the old and decrepit infrastructure in the emirate. What is more interesting, the current regime wants to see Abu Dhabi as a cultural capital not only of the UAE, but also of the whole region. The Landvest Limited, a company that deals with investment in the real estate sector and promotes the construction of elite premises in the UAE, shares this view. Market analysts have already taken cognizance of the state of affairs surrounding the real estate in Abu Dhabi and hasten to purchase immovable property so as to anticipate the possible speculation.

For a long time, Abu Dhabi had been in the shadow of its more opulent neighbor Dubai (Davidson, 2008). It has not been until late that the emirate stood out against the background of other Middle East administrative units. On the whole, the fortune of the emirate hinged largely on the ample reserves of oil that it commanded (Peck, 1986). Nowadays, when the government is conversant with the critical importance of having a multifaceted economy, it begins to lay down the underpinnings of a sound banking system and tourist center. Figures denoting the upsurge in the emirate’s real estate market are quite impressive. In 2007, almost $8 billion were earmarked for the construction sector (Tatchell, 2009). According to the Colliers International, the average price of one square meter of land rose from $550 in 2005 to $1,100 in 2007 (Tatchell, 2009). In 2008, the growth of the mortgage market reached 22% in contrast to 5% during the same period of the previous year (Tatchell, 2009). A series of researches revealed that nearly 99% of the all office areas were used.

Judging by the highest standards, the demand in this sub-sector of real estate depends heavily on the growth of the banking business and sphere of services. Moreover, such a high percentage of the office occupation in Abu Dhabi may be explained by the fact that a myriad of multinational companies (MNCs) tend to establish their own outlets in the emirate (Bradley, 2010). The propensity of MNCs to launch subsidiary companies in Abu Dhabi along the emirate’s buoyant economic growth have been in part responsible for the substantial increase in the revenues. Getting back to the issue of office occupancy, the demand for office facilities in Abu Dhabi is 25% higher than that in the adjacent regions (Low, 2012). Since the unemployment rate constitutes a paltry 2% in the emirate, there is a slim chance that house prices will bottom out in the nearest future. Those who manipulate the real estate market want to stabilize the ballooning demand by means of increasing house prices artificially. The cost of rented accommodation grew by 22% in the year 2008 (Davidson, 2009). Simultaneously, the cost of commercial real estate in the emirate went up by 53% from January till April of 2008 (Davidson, 2009). As a result, real estate potentates try to speculate in the market by means of expelling those who have lived in the emirate for a long period of time, but who have not bought the immovable property there.

Public transportation system is poorly developed in Abu Dhabi. According to the data of the Overseas Property Mall, traffic congestions are a commonplace in the city of Abu Dhabi (Miller, 2004). This problem becomes especially acute when the swarms of tourists start inundating the city. Thus, it behooves wise and sagacious investors to channel capital into the objects on the islands situated nearly 200 meters off the coast, far from the hustle and bustle of the downtown Abu Dhabi. Customers from abroad, who are not residents of the Persian Gulf, can only buy real estate for the limited period of time that does not usually exceed 99 years (Bradfer, 2010). At the same time, the government certifies a list of special investment areas that offer a bit more latitude to the potential customers. Curiously enough, several tenancy of the immovable property in Abu Dhabi is not always a sufficient ground for the streamlining of visa procedures. Even more appalling, the authorities may deny these tenants a visa at all sometimes. Another curious fact is that the emirate does not levy taxes on the real estate (Davidson, 2009). Similarly, neither capital growth nor perpetual rental charge are not heavily taxed in Abu Dhabi. At the same time, a 2% registration fee is imposed on every purchase contract (Bradley, 2010). Usually, 10% of the whole sum is paid upfront, while the available mortgage credits cover the remaining 90% (Davidson, 2009). This scenario clearly explains the ways real estate sector and banking businesses bring money to the emirate’s budget.

Tourism

A wealth of ironclad evidence suggests that the Abu Dhabi government has become obsessed with the development of tourism in the emirate. One of the reasons, albeit its influence is not determining, is that Dubai, the recognized leader of the UAE in terms of tourism development, has been pummeled by the intractable crisis that blew up in the monarchy (Bradfer, 2010). The problem of Dubai is that it placed an emphasis on the revenues from the sale of real estate projects that were still under construction. One of the major reasons why the oil potentates of Abu Dhabi decided to rivet their attention on the sphere of tourism is that they were emboldened by the positive experience of their neighbor. Judicious policies of Dubai in the sphere of building infrastructure enabled the emirate to attract a veritable army of tourists. Considering the financial rectitude and cautiousness of the Abu Dhabi government in the decision-making process, there are ample grounds to conclude that the emirate will not fall behind schedule in emulating the example of Dubai.

The emirate has a wide range of initiatives it plans to implement. In 2010, the authorities declared that they would bankroll the reconstruction of the Abu Dhabi International Airport (Low, 2012). It also plans to build the fourth terminal, which would be capable of increasing significantly the stream of tourists willing to spend a vacation in the emirate. Second, the government arrived at the conclusion that it should encourage the development of the emirate-sponsored air carrier – Etihad Airways. In the framework of this project, it was decided that the fleet of airplanes would be increased from 50 to 150 aircrafts (Low, 2012). These latest developments have a direct effect on the amount of tourists inclined to choose Abu Dhabi as a destination for their vacation.

Apart from being a home to a great number of hotels, museums, and restaurants, Abu Dhabi, the heart of the UAE, puts completely different objects into exploitation with the same alacrity as ever (Abed & Hellyer, 2001). For instance, the world’s first Ferrari theme park, with the most rapid roller coaster is especially attractive for the Formula One aficionados. Bearing in mind that the emirate’s central city hosts a Formula One race called the Abu Dhabi Grand Prix, it would not be a sacrilege to say that the emirate may soon become a real Mecca for the fans of high-speed sports and entertainment. The fact that a French corporation of vacation resorts Club Méditerranée entered into confabulation with the Abu Dhabi government on the subject of establishing the company’s first outlet in the UAE may also drag a multitude of globetrotters to the emirate. All this put together is likely to beckon the ever more growing catalogue of thrill-seekers to the emirate.

Over the course of the first half of 2012, inns and hotels of Abu Dhabi had hosted approximately 1,19 million guests. In juxtaposition to the previous year’s figures, the amount of visitors grew by 14%. This quick upturn in the industry is not due to the fact that people started recovering from the severe implications of the financial crisis of 2007 and, thus, could indulge their wanderlust more freely. Such an optimistic outlook props up the confidence of local hoteliers and infuses them with excitement on seeing the visitors arrive. By the end of 2012, nearly 2,3 million tourists had visited the emirate and, thus, helped the local authorities to reach the quantitative targets. On the current stage, tourism industry experts work themselves into a frenzy over the task of preserving the status quo and increasing the stream of tourists. A plethora of landmark events that took place in Abu Dhabi this year have made a significant contribution to the steady development of tourism in the emirate. Holding of the hereinabove mentioned Formula One race and a world-known Abu Dhabi Art Festival together with the opening of the Yas Waterpark became watershed events for the promotion of tourism in the emirate.

According to the unimpeachable historical source, combined total profit of the Abu Dhabi hotel facilities grew by 2% in 2011 and constitutes nearly $631 million (Low, 2012). At the same time, due to the stiff competition, certain hotels found themselves on the brink of a steep financial precipice. While some of them are filled to capacity, the others struggle to weather the setback. As of 2011, there are 128 inn-like facilities for the accommodation of peregrination-seekers in the city proper (Low, 2012). Since they offer 22,000 rooms, of which only 65% are constantly occupied, the revenue derived by the innkeepers have decreased by 15% of late (Low, 2012). This is a testament to the predatory competition in the market. As the quantity of rooms grows, Abu Dhabi hoteliers struggle to display some aptitude for working out a sensible pricing policy and sound financial management strategy. The lack of effective pricing policy may lead to a situation when innkeepers will have to further prune the prices of their services in order to have the rooms fully accommodated. The utilization of online travel agencies for the distribution of hotel rooms and cultivation of mutually beneficial relations with the corporate clients merits special attention, for it helps the Abu Dhabi government to salt away additional sums of money. One way or the other, tourism yields handsome dividends to the emirate’s economy due to the sanctity of policies that undergird it. In 2011, the tourism sector garnered net earnings of $111 million. However, this figure could be higher due to the fact that the average price of a hotel room fell by 11% that year. Naturally, this triggered off a catenation of crisis conditions and the clear profit of this industry decreased by nearly 5%.

If it had not been for the prudent policies on the part of the authorities, the earnings of the tourism sector would have sunk to a nadir. In 2011, the chairman of Abu Dhabi Department of Tourism Sheikh Sultan Tahnoun bin Mohammed Al Nahyan declared that the emirate planned to increase the number of hotel rooms to 26,000 by the end of 2013. What is more interesting, he added that the development of hotel industry in Abu Dhabi would be premised upon the idea of stimulating corporate sector. According to Sheikh Sultan, corporate tourism brings eight times more revenue to the emirate’s budget than the recreational one.

Foreign Direct Investment

According to the data contained in the emirate’s 2010 economic report, Abu Dhabi intends to attract a $60 billion’s worth of foreign direct investment (FDI) in the country’s economy by the year 2030 (Low, 2012). In 2012, the emirate’s GDP notched up a milestone of $248 billion. This means $60 billion of investment would account roughly for 25% of Abu Dhabi’s GDP if it did not grow for the next two decades. In order to accomplish this sublime task, the Abu Dhabi government has to assure a 9% growth of FDI per year.

The body in charge of promoting foreign investment in Abu Dhabi aspires to persuade the international community to channel money in those spheres of the emirate’s economy that do not have anything to do with petrochemicals. For the time being, that surely is a circumspect strategy due to the oil glut in the world market. Still, it would be an inconceivable folly to brush aside the oil-and-gas industry altogether. In 2010, a joint venture Borouge increased its industrial capacities to nearly 2 million tons thanks to the stable inflow of foreign capital. By the same token, the company plans to build an integrated polyolefines plant with the annual capacity of 2,5 million tons that would be the largest on the planet (Low, 2012). All in all, the examples of FDI reinvigorating the ailing companies of Abu Dhabi abound. In 2011, Emirates Steel, a subsidiary company of the Abu Dhabi Basic Industries Corporation, reached an annual capacity of 3 million tons thanks to the influx of capital on the part of the overseas investors (Low, 2012). Speaking in concrete economic terms, this projected cost nearly $3 billion. The construction of the so-called Khalifa Industrial Zone, also known as Kizad, the largest industrial free-trade estate began in 2010. For the sake of knowing, it would be wise to note that foreign companies invested nearly $8 billion in the erection of the first phase (Bradley, 2010). It is expected that Kizad will be responsible for as much as 15% of the emirate’s non-oil GDP and the creation of 150,000 jobs by the year 2030 (Taher, 2012).

Since 2010, the emirate has been preoccupied with the provision of necessary conditions for the budding industrialization of Abu Dhabi. The decision to choose Korea Electric Power Corporation (KEPC) as the prime contractor for the construction of four nuclear power stations in December 2009 ushered in a new period in the emirate’s history (Bradley, 2010). In 2010, the company’s counterpart known under the appellation of the Emirates Nuclear Energy Corporation found an ideal place for the erection of nuclear reactors on the state-owned land in the immediate vicinity of city Barka. These plants are planned to start operating sometimes between 2017 and 2020 (Bradley, 2010). Prompted by desire to fulfill these ambitious intentions, the Abu Dhabi government has already attracted nearly $21 billion of FDI. By and large, KEPCO alone plans to cover a $15 billion’s worth of all expenditures (Bradley, 2010). The company got approximately 200 smaller contractors involved in the project in order to furnish it with the necessary equipment, such as steam boilers, turbines and conduits.

These and other examples evince that the nascent technological realm has already flexed its financial muscle on the cusp of the new millennium. In 2010, the emirate-owned firm Advanced Technology Investment Company (ATIC) declared that it would steer as many as $7 billion in the construction of industrial capacities specializing in the manufacture of semiconductors. If proven successful, the production of microchips will be the maiden experience of any Middle East country or entity in this sphere. In the long term, the Abu Dhabi government aspires to transmogrify the emirate into a Middle Eastern center of the semiconductor production.

Conclusion

In 2009, the share of oil sector in the emirate’s GDP constituted 65%. Simultaneously, in other emirates this figure is only 44%. This means that Abu Dhabi is more dependent on the petrochemical industry than the rest of the country and, thus, needs to diversify its sources of income urgently. The input of the non-oil industries, such as manufacture, construction, real estate sector, banking business, tourism and transportation, into the emirate’s economy has been contemptibly slow recently and equaled nearly $48 billion. The world financial crisis that curbed the oil demand forced the United Arab Emirates in general and Abu Dhabi in particular to curtail the volumes of oil production and switch to other branches of economy.

Appendices

 

Types of economic activity

The sums of money in U.S. dollars, million

2008

2009

2010

All together

705,159

535,311

620,316

Agriculture, stock-breeding, and pisciculture

5,786

5,988

6,111

Extraction of minerals

412,274

239,006

308,022

Manufacturing

39,211

30,560

33,860

Electricity, gas, and water

14,010

14,458

14,366

Construction sector

65,655

79,310

80,925

Wholesale and retail trade

32,479

28,484

29,999

Hotels and restaurants

6,762

6,283

6,572

Transportation, storage, and communications

39,918

39,134

39,661

Financial institutes and insurance

29,575

30,154

34,498

Real estate sector

46,749

50,233

53,414

Social and personal services

12,096

12,225

14,000

Public administration and defense

18,653

20,559

23,231

Domestic Services of Household

1,309

1,503

1,648

Imputed Bank Service Charges

19,815

22,575

25,990

Table 1. Sources of Income in Abu Dhabi. Retrieved 28 December 2013, from http://www.scad.ae/SCADDocuments/Abu%20Dhabi%20in%20Figures%202011%20Eng.pdf

 

Item of expenditure

The percentage of budget

2008

2009

Total

100

100

Current expenditures

64,3

60,8

Salaries and wages

11,4

9,8

Goods and wages

10,8

11,2

Current transfers

42,1

40,2

Capital expenditures

35,7

38,4

Development expenditures on government projects

7,2

12,5

Capital expenditures on goods and services

0,2

1,2

Capital transfers

28,3

24,8

Table 2. Percentage distribution of public expenditures. Retrieved 28 December 2013, from http://www.scad.ae/SCADDocuments/Abu%20Dhabi%20in%20Figures%202011%20Eng.pdf 

References

  1. Abed, I., & Hellyer, P. (2001). United Arab Emirates: A new perspective. Naples, FL: Trident Press.
  2. Bradfer, A. (2010). United Arab Emirates: Facing the future. Paris, FRA: ACR Edition.
  3. Bradley, C. (2010). Abu Dhabi. London, UK: Berlitz Publishing.
  4. Bradley, E. H., & Taylor, L. A. (2013). The American health care paradox: Why spending more is getting the US less. New York, NY: Public Affairs Books.
  5. Daniels, J. (1974). Abu Dhabi: A portrait. London, UK: Longman.
  6. Davidson, C. M. (2008). Dubai: The vulnerability of Success. New York, NY: Columbia University Press.
  7. Davidson, C. M. (2009). Abu Dhabi: Oil and Beyond. New York, NY: Columbia University Press.
  8. Fahim, M. A. (1998). From rags to riches: A story of Abu Dhabi. New York, NY: I. B. Tauris.
  9. King, D. C. (2008). United Arab Emirates. Singapore: Marshall Cavendish.
  10. Low, L. (2012). Abu Dhabi’s vision 2030: An ongoing journey of economic development.
  11. Singapore: World Scientific.
  12. Miller, D. A. (2004). United Arab Emirates. San Diego, CA: Lucid Books.
  13. Peck, M. C. (1986). The United Arab Emirates: A venture in unity. Boulder, CO: Westview Press.
  14. Taher, N. (2012, September 1). Dh26.5 billion Khalifa Port starts service. Gulf News.
  15. Retrieved from http://gulfnews.com/business/construction/dh26-5-billion-khalifaport-starts-service-1.1068894
  16. Tatchell, J. (2009). A diamond in the desert: Behind the scenes in Abu Dhabi, the world’s richest city. London, UK: Black Cat Books.

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