Economy Surplus of $8bn predicted in latest Dubai budget cycle By Gavin Gibbon October 30, 2024, 1:49 PM Alamy/Kairi Aun Almost half of spending in 2025 has been allocated to infrastructure projects, including the emirate’s rainwater drainage development plan, after record rains in April that caused widespread damage Expenditure to be AED272bn Revenues estimates at AED302bn Half of spend on infrastructure A record surplus of AED30 billion ($8.16 billion) is being predicted by Dubai in its latest three-year budget. The emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, has approved the 2025-27 budget cycle, which includes AED272 billion in expenditure, against estimated revenues of AED302 billion. For the 2025 fiscal year, expenditure has been set at over AED86 billion, with revenues approaching AED98 billion. Almost half of spending in 2025 has been allocated to infrastructure projects, including roads, tunnels, bridges, renewable energy facilities and the emirate’s rainwater drainage network development plan. In April this year Dubai was hit by record rains that caused widespread damage and brought the city to a standstill. Authorities subsequently promised to spend upwards of AED30 billion to improve the city’s drainage system. UAE announces largest-ever budget for 2025 UAE’s budget to remain in surplus in 2024 Dubai’s 2024-26 budget sets total spend at $67bn Funding from the budget will also go towards the new airport terminal at Dubai World Central, which was approved in April and is due to be delivered in the next 10 years at a projected cost of AED128 billion. The airport will have four additional runways, with capacity for 260 million passengers, more than double Dubai International Airport’s 120 million. Almost a third of total government expenditure in the 2025 budget has been allocated to the social development sector, which includes health, education, scientific research, housing and support for needy families, women and children. The security, justice and safety sector will make up 18 percent of total expenditure. “This sector remains one of the most critical in the emirate,” the UAE state-run news agency Wam reported. The budget also includes a general reserve of AED5 billion in revenues, which will be deducted each year across the three-year cycle. Dubai’s GDP hit AED115 billion in the first quarter of 2024, as the emirate’s economy grew 3.2 percent compared to Q1 2023. A key goal of the Dubai Economic Agenda is to double the size of Dubai’s economy over the next decade.
