UAE Vice President and Prime Minister and Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, approved Dubai's general budget for the fiscal cycle of 2024-2026, with total expenditures of $67.1 billion.
The fiscal cycle aims to develop and stimulate entrepreneurship, attract more foreign investment, promote social welfare, and consolidate the emirate's position as a land of opportunity and innovation.
Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said the 24/26 budget charts a financial roadmap for accelerating our ambitions to foster exponential economic growth and consolidate Dubai's position as a global economic powerhouse.
The Crown Prince explained that the budget emphasizes support for key sectors vital to the future and the emirate's transition into a new phase of dynamic growth driven by digital and knowledge-based innovation.
"It will also support our efforts to nurture homegrown entrepreneurship and create a high-growth environment for all sectors," he said.
The budget for the fiscal year 2024, which was approved with total expenditures of $21.5 billion, meets the requirements of the objectives of Dubai Strategic Plan 2030 and Dubai Economic Agenda D33.
Flexible plan
Director-General of the Department of Finance (DoF) Abdulrahman al-Saleh indicated that the budget cycle represents a flexible and developable financial plan that will achieve economic sustainability for the government and increase competitiveness and transparency.
Saleh explained that the cycle also works to achieve the vision of Dubai's Crown Prince, who "directed us to increase government support for the sectors of social development, citizen housing, government work development, government digitalization, scientific research, institutional agility, and global competitiveness enhancement."
General reserve from annual revenues is set to reach around $5.6 billion as planned for 2024-2026.
The DoF expects to achieve an operating surplus of up to 3.3 percent of Dubai's GDP during the 2024-2026 financial plan to establish the foundations of the emirate's economic sustainability.
Saleh announced that the Dubai government expects to achieve estimated public revenues of $24.6 billion, of which $23.1 billion have been allocated to the budget and $1.4 billion to the general reserve.
The Dubai government allocated 19 percent of total expenditures to the security, justice, and safety sector to develop it further and enhance its ability to perform professionally and proactively until it has become one of the sectors that the emirate boasts on the global stage.
Next year's expenses
Saleh said the announcement of expenditures sends a positive message to the business community that Dubai is pursuing an expansionary financial policy, which adds great confidence to the emirate's economy and contributes to attracting more direct investments.
Salaries and wages constitute 26 percent of total government expenditures, and grants and government support expenditures 23 percent, while 24 percent of total expenses have been allocated to general and administrative spending.
Despite the completion of many strategic projects, the activation of the public-private partnership law and the development of project financing through long-term financing means the government has allocated 8 percent of total expenditures to construction projects.
Dubai has also maintained a debt service ratio that does not exceed 7 percent of its total expenditures as part of its disciplined financial policy.
