Fuel prices in the major OPEC producer, set in line with global oil price benchmarks, have soared over 70% since Russia’s invasion of Ukraine, accentuating differences with neighboring petrostates that heavily subsidize gasoline.
Still in the UAE, where expats outnumber locals nearly nine to one, fuel price hikes are costliest for legions of workers from Africa, the Middle East and South Asia who power the economy. Inflation has cut into laborers’ already meager salaries, triggering aOther Gulf Arab countries have also curbed state benefits to balance their budgets in recent years.
The tiny Emirati population benefits from a generous welfare state that helps with everything: free education, health care and housing, grants for marriage, scholarships to foreign universities and well-paid government jobs. “The outlays are a recognition that citizens know oil revenues are really high right now,” said Karen Young, a senior fellow at the Washington-based Middle East Institute. “This is a traditional mechanism of sharing.”
The grievances escalated to President Sheikh Mohammed bin Zayed Al Nahyan’s weekly majlis, a gathering at which any citizen may apply to voice concerns, said Emirati political expert Majed al-Raeesi. But that help will not reach those who need it most. Desperation over the cost of living is growing among the region’s low-paid migrant workers.
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