Dubai Ruler Approves $15.5 Bln Budget for 2021

A man wearing a protective face mask walks through the deserted Barajeel Souq, following the outbreak of the coronavirus disease (COVID-19), in old Dubai, UAE, March 31, 2020. (Reuters)
A man wearing a protective face mask walks through the deserted Barajeel Souq, following the outbreak of the coronavirus disease (COVID-19), in old Dubai, UAE, March 31, 2020. (Reuters)
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Dubai Ruler Approves $15.5 Bln Budget for 2021

A man wearing a protective face mask walks through the deserted Barajeel Souq, following the outbreak of the coronavirus disease (COVID-19), in old Dubai, UAE, March 31, 2020. (Reuters)
A man wearing a protective face mask walks through the deserted Barajeel Souq, following the outbreak of the coronavirus disease (COVID-19), in old Dubai, UAE, March 31, 2020. (Reuters)

Dubai, the business and financial hub of the United Arab Emirates (UAE), has approved a 57.1 billion dirham ($15.55 billion) budget for 2021, when the economy is expected to recover from a contraction this year, its ruler said on Sunday.

The statement did not give a comparison to actual spending in 2020, but the size of the 2021 budget is 14% below the 66.4 billion dirhams it had set for 2020.

This year’s budget had factored in economic dividends from the Expo 2020 world fair, a six-month event originally slated to begin in October but postponed for a year due to the COVID-19 pandemic.

The 2021 budget, which was approved by Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum, takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the pandemic on the global economy, the statement on Sheikh Mohammed’s website said.

Dubai, with its diversified trade and tourism economy, was hit hard by a lockdown and suspension of flights earlier this year.

The economy is expected to contract 6.2% in 2020 before growing 4% in 2021, supported by the continued recovery of economic activities, it said.

The statement said Dubai is expected to achieve public revenues of 52.314 billion dirhams, despite the economic incentive measures adopted by the government to reduce some fees and freeze fee increases.

Non-tax revenues, which come from state fees on various services, account for 59% of the total expected revenues, while tax revenues account for 31% and government investment revenues 6%.

This means Dubai is expected to post a deficit of 4.786 billion dirhams in 2021, up from the 2.4 billion dirhams deficit budgeted in 2020.

The public revenue forecast is based on ongoing operations in the emirate and does not rely on oil revenues. Oil revenues account for 4% of the total projected revenues for the fiscal year 2021.

The government also approved 9% of spending to maintain the volume of investment in infrastructure.



Egypt, Saudi Arabia Sign Agreement to Enhance Cooperation in Energy Efficiency

The deal includes the development of energy services companies and promotion of infrastructure for energy efficiency improvement projects. Photo: Egyptian petroleum ministry
The deal includes the development of energy services companies and promotion of infrastructure for energy efficiency improvement projects. Photo: Egyptian petroleum ministry
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Egypt, Saudi Arabia Sign Agreement to Enhance Cooperation in Energy Efficiency

The deal includes the development of energy services companies and promotion of infrastructure for energy efficiency improvement projects. Photo: Egyptian petroleum ministry
The deal includes the development of energy services companies and promotion of infrastructure for energy efficiency improvement projects. Photo: Egyptian petroleum ministry

Egypt and Saudi Arabia have signed an executive plan aimed at enhancing cooperation in the field of energy efficiency.

Under the executive plan, both countries will work together to establish a national energy efficiency program in Egypt, which will include drafting regulations and technical standards, capacity building, raising awareness, and fostering the development of energy service companies.

The plan was signed on Monday by two Egyptian ministries - petroleum and electricity and renewable energy - and Saudi Arabia’s ministry of energy in Cairo.

As per the partnership, Egypt and Saudi Arabia will exchange knowledge and offer technical support in energy efficiency improvement, in addition to building human cadres through training courses and workshops.
The deal includes the development of energy services companies and promotion of infrastructure for energy efficiency improvement projects along with facilitating supply and investment mechanisms in these projects.

Also Monday, Egyptian President Abdel-Fattah el-Sisi inaugurated the eighth edition of the Egypt Energy Show (EGYPES) 2025 in Cairo alongside Cypriot President Nikos Christodoulides and in the presence of Saudi Minister of Energy Prince Abdulaziz bin Salman.

The Saudi minister reaffirmed the Kingdom’s commitment to strengthening energy cooperation with Egypt during his address at EGYPES.

He highlighted several major joint energy initiatives as ways of enhancing regional energy security and sustainability.

As part of the collaboration, five new solar and wind energy projects will be launched in Egypt by Saudi companies, boasting a combined capacity of 1.696 gigawatts and an investment of about $1.65 billion.

The projects will be developed by ACWA Power, Alfanar, FAS, and MOWAH.

Additionally, ACWA Power signed a power purchase agreement with the Egyptian Electricity Transmission Company to develop a 2-gigawatt wind power project in the Red Sea's Hurghada.