Dubai’s 2024-26 budget sets total spend at $67bn

Unsplash.com/Ahmed Aldaie

The Dubai government has approved the budget for 2024 to 2026, with total expenditure projected at AED246.6 billion ($67.14 billion).

Estimated expenses for next year stand at AED79.1 billion, the UAE state-run Wam news agency reported.

The government has forecast that public revenue will reach AED90.6 billion, of which AED85.1 billion will be allocated to the budget and AED5.5 billion to the general reserve.

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“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,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai and chairman of the executive council of Dubai.

Salaries and wages will constitute 26 percent of total expenses, while grants and government support expenditures will comprise 23 percent. Another 24 percent of total spending has been given to general and administrative costs.

In addition, the government has allocated eight percent of total expenditure to construction projects.

Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources, and waste treatment facilities, will reach 42 percent of total spending next year.

As much as 34 percent of total expenditure has been assigned to the social development sector.

In addition, Dubai will hedge against any situation resulting from global crises by allocating eight percent of the total budgeted expenditure to a special reserve.

As part of its disciplined financial policy, the emirate has maintained a debt service ratio not exceeding seven percent of its total expenditure.

Dubai’s economy grew 3.2 percent year on year in the first half of 2023 to AED223.8 billion, supported by a 3.6 percent expansion in real GDP in the second quarter.

The positive economic performance was driven by growth in sectors such as transportation, wholesale and retail trade, financial and insurance, and real estate.