Dubai's Sheikh Mohammed Unveils $67bn Budget Vision
The Vice President and Ruler of Dubai, Sheik Mohammed bin Rashid approved a budget for the upcoming year 2024 to 2026 that allocates Dirhams 246.6 billion of expense.
The media office said that the Expenses for the year 2024 are estimated at 79.1 billion dirhams and the public revenues at 90.6 billion dirhams.
And it also said that the estimated revenues, of 85.1 billion dirhams would be assigned to the budget followed by the remaining 5.5 billion dirhams would be allocated for the general reserve.
The ruler of Dubai has approved Law No. 20 of 2023 concerning the General Budget of the Dubai Government for the annual year 2024 with the allotted estimation. This process shows Dubai’s fast economic recovery and raises its ambitions to speed up the macroeconomy and support the objectives of the Dubai Strategic Plan 2030 development project, and also the Dubai Economic Agenda D33.
For the next three years, the financial plan is to raise entrepreneurship, cover more foreign investment, promote social welfare, assist fields like space research, digitisation, and artificial intelligence, and combine the emirate’s position as a land for opportunity and innovation.
The Vice President and Ruler of UAE, Sheik Hamdan bin Mohammed said that the new budget will play a vital role in achieving the aims to double the city’s GDP ( Gross Domestic Product ) and drive that into the mars of the world’s top three urban economies over the next ten years.
He also extended that the budget shows the agreement to the well-balanced highest growth with stability in the economy and a complete foundation by wise financial policies.
This financial stability, competitiveness, and glassiness fixed in this budget will make Dubai even more interesting to investors and businesses from around the world who all are searching for new offers.
The Dubai Emirate, the commercial and trading centre of the Middle East, has allotted 34 percent of the total government expenditure for the upcoming year 2024 budget to social development.
The social development sectors include education, health, scientific research, shelter, care for needy families and women and children, reading, writing, learning, translation and programming initiatives, growth of youth and sports, special care for senior citizens and retirees, and care for people of determination.
The Dubai government has allotted 19 percent of the total expenses to the safety sector including infrastructure, roads, tunnels, bridges, parks, sewage, transport, renewable energy resources, and waste treatment facilities viewed as 42 percent of total spending.
Abdulrahman Al Saleh, director general of Dubai Government’s Department of Finance, said the government is planning to adopt deliberate financial policies.
“This has led to the establishment of a general reserve from annual revenues that is set to reach around Dh20.6 billion as planned for the three years 2024-2026 … DOF expects to achieve an operating surplus of up to 3.3 percent of Dubai’s GDP, during the 2024-2026 financial plan, in order to establish the foundations of the emirate’s financial sustainability,” he added.
Dubai is very clear to fence against any obstacle that may result from the global mess by allotting a special fund of 8 percent of the total expected investment in the budget.
The emirate has also followed and maintained an account service ratio that won’t increase more than 7 percent of its total expenditures, as part of its stable financial policy. The payment and wages compose 26 percent of the total government investment.
Dubai’s non-oil private sector economy stayed weak in September as the growth of sales hit the largest in more than four years among the increasing requirements.
The emirate’s occasionally changed S&P Global purchasing managers directory reading rose to 56.1 in September, noting its best performance in three months, above 55.0 in August.
According to government data, Dubai’s economy elaborated a yearly 3.2 percent increase in 2023 to achieve Dh223.8 billion, followed by a 3.6 percent reach in the other quarter part of the year.
The emirate’s transport and storage sector defeated all other industries, extending 10.5 percent in January to June.
This sector, which includes sea, land, and air transport and logistics, donated 42.8 percent to the overall reach and introduced Dh31.4 billion into the emirate’s economy.
According to Emirates NBD ( National Bank of Dubai ), the Emirate’s economic contribution expands the growth achieved in 2022 when the emirate extended by 4.4 percent. It is predicted to rise by 3,5 percent in 2023.