Ruler of Dubai, Vice President and Prime Minister of the UAE Sheikh Mohammed bin Rashid Al Maktoum approved the Government of Dubai’s 2018 General Budget Law No. (21) for the year 2017 of Dh56.6 billion ($15,4 billion), featuring a 19.5 percent year-on-year increase.
The new budget comes in line with the Dubai Strategic Plan 2021's targets and future commitments, especially Expo 2020.
The budget features a rise in infrastructure spending, which makes up 21 percent of the total government expenditure.
This reflects the directives of the Ruler of Dubai to raise infrastructure efficiency in Dubai in order for the emirate to become the preferred destination for living, tourism and business across all sectors.
“Over the coming years, Dubai Government actively seeks to improve public budget performance continuously in order to achieve financial sustainability, fulfill the emirate’s commitments and realize the strategic objectives of Dubai 2021 Plan,” said Abdulrahman Saleh Al Saleh, Director General of Dubai Government’s Department of Finance (DOF).
Furthermore, this aims to make the upcoming mega international event – Expo 2020 Dubai – one of the best in the history of expo exhibitions.
“The Expo presents challenges that require us to focus on availing construction expenses needed for the mega infrastructure projects related to Expo 2020 Dubai,” Al Saleh said
He added that such projects will not only benefit the success of the huge international expo upon its launch in three years, but they are also expected to serve the emirate for decades to come, especially in light of Dubai’s noticeable urban expansion towards the Expo project area.
Al Saleh explained that Dubai’s commitment to Expo excellence and to UAE’s leading status on the international scene has led to the approval of a budget with a Dh6.2 billion deficit, representing 1.55 percent of the total GDP in Dubai.
“This is a result of a 46.5 percent rise in the infrastructural spending over the fiscal year 2017 and including over Dh5 billion dedicated to Expo projects,” Al Saleh stated.
On the other hand, the government has managed to achieve financial sustainability by achieving an operating surplus of Dh2.5 billion. This illustrates the breadth of the financial solvency of Dubai in accordance with the directives of the Dubai Supreme Fiscal Committee.
The Public Private Partnership law forms an ideal platform to build modern practices in the management of financial resources efficiently and effectively.
Over the coming years, this law will contribute to the implementation of some public projects in partnership with the private sector, which will enhance creativity and innovation, further raise the government's performance levels, and improve government efficiency and enhance transparency Al Saleh stressed.