ABSTRACT
This chapter examines the allocational pattern of oil revenue in the individual Emirates, that is, Bahrain, Kuwait, Qatar and United Arab Emirates. It utilizes one model for computing the available data for each of the Emirates. Oil revenue is taken to mean all payments received by the states from the working oil companies, that is, income tax, royalties, bonuses, rent and import duties. The expenditure of oil revenue will be considered under five main headings: current expenditure, capital expenditure, the allocation to the ruling family, expenditure on land purchase schemes, and finally allocation to the reserve fund. The chapter discusses the state public revenue and explores public expenditure and the public reserve, the allocation of the state’s oil revenue. It considers the proportional contribution of oil revenue spent to cover the gross deficit in the main items of expenditure. The allocation to the privy purse, though taken directly from oil revenue, has been treated like any other item of expenditure.
