U.A.E's New Tax to Generate $1.9 Billion per Year

The video discusses economic reforms in the UAE and Saudi Arabia, focusing on diversification efforts due to fluctuating oil prices. It highlights the introduction of VAT and other government measures to boost non-oil revenue. The discussion includes Saudi Arabia's projected revenue growth and upcoming changes like expat levies and subsidy reductions. The video concludes with an analysis of Saudi Arabia's fiscal performance and a positive outlook on its economic diversification journey.

What is one of the main reasons for the economic reforms in the UAE and Saudi Arabia?

• To increase government subsidies

• To reduce foreign investments

• To diversify income sources

• To increase oil production

What is Bank of America's outlook on Saudi Arabia's diversification efforts?

• Uncertain

• Optimistic

• Neutral

• Pessimistic

What significant change is expected in Saudi Arabia in 2018?

• Increase in oil subsidies

• Introduction of VAT

• Decrease in non-oil revenue

• Removal of expat levies

How is the Saudi government planning to support lower-income citizens amidst subsidy reductions?

• By increasing taxes

• By providing benefit handouts

• By reducing VAT

• By increasing oil prices

What fiscal target does the Saudi government aim to achieve?

• A 5% fiscal surplus

• A 12% fiscal deficit

• A 7.8% fiscal deficit

• A 15% fiscal deficit