In his capacity as Ruler of Dubai, 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.
The Ruler of Dubai also approved Law No. (20) of 2023 regarding the General Budget of the Dubai Government for the Fiscal Year 2024, with expenditures estimated at AED79.1 billion, which 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”.
Financial roadmap for accelerating economic growth
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai 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. Guided by the vision of the Ruler of Dubai, 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.”
Supporting projects and stimulating the economy
Abdulrahman Saleh Al Saleh, Director General of the Department of Finance (DOF) for the Government of Dubai, said: “We adopted disciplined financial policies. This has led to the establishment of a general reserve from annual revenues that is set to reach around AED20.6 billion as planned for the three years 2024-2026. This is in addition to what is decided by Dubai’s Supreme Fiscal Committee chaired by Sheikh Ahmed bin Saeed Al Maktoum, in terms of reserving annual surpluses, which contribute to achieving financial sustainability and enhance the financial position of the emirate”.
“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 financial sustainability.” Al Saleh concluded.
Read more: Dubai’s economy soars: 3.2 percent growth in H1 2023, reaching AED223.8 bn
Projected revenues and expenditures in 2024
As a result of the emirate’s rapid and efficient recovery procedures from the consequences of the global pandemic, the Dubai government expects to achieve estimated public revenues of AED90.6 billion, of which AED85.1 billion have been allocated to the budget, and AED5.5 billion to the general reserve.
Salaries and wages constitute 26 percent of total government expenditures, and grants and government support expenditures constitute 23 percent, while 24 percent 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 percent 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 eight percent of the total expected expenditures in the budget. Dubai has also maintained a debt service ratio that does not exceed seven percent of its total expenditures, as part of its disciplined financial policy.
Sectoral distribution of expenditures in 2024
A total of 34 percent of total government expenditures of the 2024 budget goes to the social development sector in the areas of health, education, scientific research, housing, caring for needy families and women and children, preparing youth, developing sports, and caring for senior citizens and retirees, as well as caring for people of determination.
Dubai government has allocated 19 percent 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.
Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources, and waste treatment facilities, has accounted for 42 percent 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 percent of total government spending to develop performance and foster a culture of excellence, innovation, and creativity.
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