Identifier
Created
Classification
Origin
09DUBAI40
2009-01-29 13:40:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Dubai
Cable title:
DUBAI'S "TRANSPARENT" BUDGET
how-toVZCZCXRO8031 PP RUEHDIR DE RUEHDE #0040 0291340 ZNR UUUUU ZZH P 291340Z JAN 09 FM AMCONSUL DUBAI TO RUEHC/SECSTATE WASHDC PRIORITY 6371 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEATRS/DEPT OF TREASURY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEHAD/AMEMBASSY ABU DHABI PRIORITY 3399 RUEHDE/AMCONSUL DUBAI PRIORITY 9604
UNCLAS DUBAI 000040
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/FO, NEA/ARP (MASILKO) AND EEB PLEASE PASS TO
USTR (BUNTIN)
E.O. 12958: N/A
TAGS: EFIN ECON EINV PREL PGOV AE
SUBJECT: DUBAI'S "TRANSPARENT" BUDGET
UNCLAS DUBAI 000040
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/FO, NEA/ARP (MASILKO) AND EEB PLEASE PASS TO
USTR (BUNTIN)
E.O. 12958: N/A
TAGS: EFIN ECON EINV PREL PGOV AE
SUBJECT: DUBAI'S "TRANSPARENT" BUDGET
1. (U) Ostensibly in support of Dubai government's efforts at
greater transparency, publically disclosed details of Dubai's
2009 government budget provided an unprecedented (though not
highly informative)) glimpse into the historically closely held
balance sheet. In particular, the released information
differentiates for the first time between public sector and
Dubai government wholly-owned commercial entity (Dubai World and
Investment Corporation of Dubai) revenue and expense streams.
2. (SBU) The local press widely praised the projected 4.2
billion AED (USD 1.14 billion) public sector deficit as
providing a "fiscal boost" to the local economy. It was
especially positive towards the disclosure that 45 percent of
the budget (17.05 billion AED or USD 4.65 billion) is slated for
infrastructure development, including roads, metrorail, port and
other municipality projects.
3. (SBU) Slightly less heralded, was a projected increase in
2009 public sector revenues of 26 percent over fiscal 2008.
Given that Dubai's public sector revenue stream is primarily
generated by fees (road tolls, registration fees, etc.) and
features no sales or valued added taxes, it is difficult to
imagine how the Dubai government plans to generate an additional
7 billion AED (1.9 billion USD)in a declining economy and no
official explanation has been given.
4. (SBU)The most interesting aspect of the budget was the
demarcation between traditional public sector expense/revenue
streams and those generated by the Dubai government's holdings
in para-statals Dubai World and Investment Corporation of Dubai.
The 2009 budget features a total of 138 billion AED revenue
(split 33.5 billion public and 104.5 billion para-statal) with
135 billion AED expenditures (split 37.7 billion public and 97.3
billion para-statal).
GAVITO
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/FO, NEA/ARP (MASILKO) AND EEB PLEASE PASS TO
USTR (BUNTIN)
E.O. 12958: N/A
TAGS: EFIN ECON EINV PREL PGOV AE
SUBJECT: DUBAI'S "TRANSPARENT" BUDGET
1. (U) Ostensibly in support of Dubai government's efforts at
greater transparency, publically disclosed details of Dubai's
2009 government budget provided an unprecedented (though not
highly informative)) glimpse into the historically closely held
balance sheet. In particular, the released information
differentiates for the first time between public sector and
Dubai government wholly-owned commercial entity (Dubai World and
Investment Corporation of Dubai) revenue and expense streams.
2. (SBU) The local press widely praised the projected 4.2
billion AED (USD 1.14 billion) public sector deficit as
providing a "fiscal boost" to the local economy. It was
especially positive towards the disclosure that 45 percent of
the budget (17.05 billion AED or USD 4.65 billion) is slated for
infrastructure development, including roads, metrorail, port and
other municipality projects.
3. (SBU) Slightly less heralded, was a projected increase in
2009 public sector revenues of 26 percent over fiscal 2008.
Given that Dubai's public sector revenue stream is primarily
generated by fees (road tolls, registration fees, etc.) and
features no sales or valued added taxes, it is difficult to
imagine how the Dubai government plans to generate an additional
7 billion AED (1.9 billion USD)in a declining economy and no
official explanation has been given.
4. (SBU)The most interesting aspect of the budget was the
demarcation between traditional public sector expense/revenue
streams and those generated by the Dubai government's holdings
in para-statals Dubai World and Investment Corporation of Dubai.
The 2009 budget features a total of 138 billion AED revenue
(split 33.5 billion public and 104.5 billion para-statal) with
135 billion AED expenditures (split 37.7 billion public and 97.3
billion para-statal).
GAVITO