Dubai approves 2023-25 budget with a spend of $56bn

WAM

Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum approved the spending of AED 205 billion ($55.81 billion) between 2023 and 2025.

The emirate will spend AED 67.5 billion ($18.38 billion) next year, with revenues expected at AED 69 billion, implying a surplus of AED 1.5 billion.

Oil revenues will represent only about five percent of the total expected income for 2023, which confirms the financial sustainability of the emirate, Dubai’s Department of Finance (DoF) said in a statement published by the UAE state-owned WAM news agency.

In its 2023 budget, Dubai will continue to focus on social services and developing the health, education, and culture sectors. In addition, it prioritises the emirate’s housing programme as part of a plan for the next 20 years.

Abdulrahman Saleh Al Saleh, director-general of Dubai’s DoF, said that a total of 34 percent of total government expenditures in 2023 will be allocated to the social development sector in the areas of health, education, scientific research, housing, care for needy families and women and children. This sector’s expenditure represents an increase of four percent over the 2022 budget.

As part of efforts to transform Dubai into one of the world’s best cities to live, work and visit, the government has allocated 20 percent of total expenditures to the security, justice and safety sector.

Dubai’s continuous infrastructure development had a strong impact on the UAE’s global competitiveness. Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources and waste treatment facilities, accounted for 41 percent of total spending.

Moreover, the budget showed the government’s keenness to support small projects and entrepreneurship, and provide a nurturing environment for micro-enterprises.

Arif Abdulrahman Ahli, executive director of planning and general budget sector at DoF, said: “An operating surplus of 4.6 percent of total revenues ensures that Dubai maintains high levels of financial sustainability.”