Image courtesy: Government of Dubai Media Office
The Dubai Government has approved a budget of Dhs246.6bn up until 2026 and focused most of the expenditures on economic growth, social benefits and development, according to the Government of Dubai Media Office.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai also approved Law No. 20 of 2023 for the general budget for the fiscal year 2024.
The expenditure for the fiscal year 2024 alone is estimated at Dhs79.1bn, as the emirate seeks to accelerate economic growth, support the objectives of D33 and consolidate its position as a global economic powerhouse.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council said the 2024-2026 budget reflects the city’s commitment to balance the highest growth ambitions with economic stability, underpinned by prudent financial policies.
Dubai allocated 34 per cent of the total expenditure of the 2024 budget toward the social development sector, which includes health, education, scientific research and housing, while 42 per cent was set aside for infrastructure and transportation sectors.
The emirate, with its diversified trade and tourism economy, is expected to achieve public revenues of Dhs90.6bn, of which Dhs85.1bn have been allocated to the budget, and Dhs5.5bn to the general reserve.
“The Department of Finance expects to achieve an operating surplus of up to 3.3 per cent of Dubai’s GDP, during the 2024-2026 financial plan, to establish the foundations of the emirate’s financial sustainability,” said Abdulrahman Saleh Al Saleh, director general of the department of finance for the Government of Dubai.
The newly approved general budget is aimed at nurturing homegrown entrepreneurship and creating a high-growth environment for all sectors.
Furthermore, the financial sustainability, competitiveness and transparency embedded in this budget are expected to further enhance the city’s appeal to foreign investors.
Dubai accelerates sustainable growth
Meanwhile, the Dubai Government is introducing initiatives and structural reforms in several sectors of the economy to bolster growth and strengthen the emirate’s non-oil private sector.
The emirate unveiled a new economic plan for the next decade in January, which envisages increasing foreign direct investment (FDI) to Dhs650bn by 2033.
The mammoth economic plan aims to attract an average of Dhs60bn in FDI annually over the next decade, from Dhs32bn annually in the last decade. It envisages increasing foreign trade to Dhs25.6tn for goods and services from Dhs14.2tn in the last 10 years.
With a growth of 3.2 per cent In the first half of 2023, compared to the same period last year, the total value of Dubai’s economy reached Dhs223.8bn.
GDP growth was driven by sectors such as transportation, wholesale and retail trade, financial and insurance, accommodation and food services, real estate, information and communication and manufacturing.
These sectors collectively contributed to approximately 93.9 per cent of H1 2023 growth, according to data from Dubai Data and Statistics Establishment.
