Sheikh Mohammed unveils Dubai’s ambitious AED 246 billion budget
Dubai has once again captured attention with its ambitious plans, and this time it’s all about its remarkable budget for 2024–2026. In case you missed it, here’s our comprehensive guide to bring you up to speed!
Renowned for its futuristic skyline and rapid progress, Dubai is prepared to invest a whopping AED 246.6 billion (equivalent to around $67.1 billion) over this period. And we have all the details!
This budget signifies the emirate’s economic recovery and its commitment to drive growth. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, has given the Government of Dubai’s general budget the go-ahead. The fiscal cycle of 2024–2026 will witness an estimated expenditure of AED 79.1 billion (approximately $21.5 billion), with the remainder allocated to various industries.
Fostering economic growth and innovation
This generous spending plan goes beyond mere numbers; it serves as a roadmap to accelerate economic growth, support the development projects outlined in the Dubai Strategic Plan for 2030, and propel the Dubai Economic Agenda “D33.”
Under the visionary leadership of Sheikh Mohammed bin Rashid Al Maktoum, this budget will play a crucial role in Dubai’s journey to double its GDP and position itself as one of the world’s top three urban economies within the next decade. However, it’s not solely focused on growth; the budget also prioritizes economic stability and prudent financial policies.
Nurturing key sectors and promoting innovation
Dubai’s budget primarily caters to crucial sectors vital for its future and overall growth. It aims to transition into a new era of dynamic growth driven by digital and knowledge-based innovation.
This budget is carefully designed to propel Dubai toward a resilient and prosperous future, promising growth, innovation, and limitless opportunities. It supports various sectors, including social development, housing, scientific research, digitization, and artificial intelligence.
The financial sustainability, competitiveness, and transparency embedded in this budget will make Dubai an even more attractive destination for investors and businesses seeking new avenues.
Ensuring Dubai’s financial sustainability
Abdulrahman Saleh Al Saleh, Director General of the Department of Finance (DoF) for the Government of Dubai, highlights the significance of financial sustainability, competitiveness, and transparency in this budget. Dubai’s disciplined financial policies have led to the establishment of a general reserve expected to reach approximately AED 20.6 billion ($5.6 billion) over the next three years (2024–2026).
During this period, the operating surplus target is set at up to 3.3 percent of Dubai’s GDP, guaranteeing financial sustainability for the emirate. These measures align with Dubai’s commitment to implementing disciplined financial policies and ensuring a stable financial position.
Showcasing Dubai’s economic resilience
Despite the challenges posed by the global pandemic in 2020, Dubai’s efficient recovery strategies have paved the way for estimated public revenues of AED 90.6 billion ($24.7 billion). A significant portion of these revenues, AED 85.1 billion ($23.2 billion), has been allocated to the budget, with AED 5.5 billion ($1.5 billion) designated for the general reserve.
By allocating AED 79.1 billion ($21.5 billion) for the fiscal year 2024, Dubai sends a clear message to the business community that it is pursuing an expansionary financial policy, instilling confidence in the emirate’s economy and attracting more direct investments.
Striking a balance between growth and stability
Dubai’s budget intelligently allocates resources to diverse sectors, including social development, security, infrastructure, and public services. This well-rounded approach reflects Dubai’s determination to continue developing its infrastructure and delivering strategic development projects while upholding disciplined financial policies.
Dubai is also prepared for unforeseen global crises by setting aside a special reserve amounting to eight percent of the total expected expenditures in the budget. This forward-thinking approach ensures the emirate’s financial stability.
