Dubai Announces US$67.1 Billion Budget for 2024-2026

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved the Government of Dubai’s general budget for the fiscal cycle of 2024-2026, with total expenditures of AED246.6 billion (US$67.1 billion).

Dubai budget 2024-2026

The spending plan reflects the emirate’s economic recovery and boosts its ambitions to stimulate the macro-economy and support the objectives of the Dubai Strategic Plan 2030 development project as well as the Dubai Economic Agenda “D33”.

Al Maktoum said: “The 2024-2026 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 new budget will play an instrumental role in achieving our goals to double the city’s GDP and propel it into the ranks of the world’s top three urban economies over the next decade. At the same time, the budget reflects our commitment to harmoniously balance the highest growth ambitions with economic stability, underpinned by prudent financial policies. 

Reflecting the leadership’s progressive vision, the budget emphasizes support for key sectors that are 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.

Furthermore, the financial sustainability, competitiveness and transparency embedded in this budget will make Dubai even more appealing to investors and businesses from across the world seeking new opportunities. The new budget provides the perfect springboard for Dubai to realize its aspirations for building a resilient and prosperous tomorrow for the city and its people”.

The financial plan for the next three years (2024-2026) confirms Dubai’s determination to continue developing and stimulating entrepreneurship, attracting more foreign investment, promoting social welfare and consolidating the emirate’s position as a land of opportunity and innovation.

It also demonstrates Dubai’s vision for the future by supporting fields like space research, digitization and artificial intelligence.

Content

The announcement of expenditures amounting to AED79.1billion (US$21.5 billion) in 2024 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% of total government expenditures, and grants and government support expenditures constitute 23%, while 24% of total expenditures have been allocated to general and administrative expenditures.

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% of total expenditures to construction projects.

This sends a strong signal to the private sector about Dubai’s determination to continue developing its infrastructure and delivering more strategic development projects.

Dubai is also keen to hedge against any situation that may result from global crises by allocating a special reserve of 8% of the total expected expenditures in the budget.

Dubai has also maintained a debt service ratio that does not exceed 7% of its total expenditures, as part of its disciplined financial policy.

A total of 34% of total government expenditures of the 2024 budget goes to the social development sector in healthcare, education, scientific research, housing, caring for needy families and for women and children, preparing youth, developing sports, and caring for senior citizens and retirees, as well as caring for people of determination.

The government has allocated 19% of total expenditures to the security, justice and safety sector, to further develop it 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.

Dubai

Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources and waste treatment facilities, has accounted for 42% of total spending.

The emirate’s government has also placed high emphasis on supporting the public services sector, government excellence, creativity, innovation and scientific research by allocating five per cent of total government spending to develop performance and foster a culture of excellence, innovation and creativity.

The 2024 budget meets the requirements of the Dubai Strategic Plan 2030 development project and beyond. An expected operating surplus of 16% of total revenues ensures that Dubai maintains high levels of financial sustainability.

Related Reading

• An Introduction to Doing Business in Dubai 2023

• Previous Article Saudi Arabia Starts 12 Month, Multi Entry E-Visa Service
• Next Article Egypt To Launch Sharia-Compliant Stock Index