Dubai's 2024-2026 Budget with $67.14 Billion Expenditure Focuses on Economic Transformation

The Dubai government has given its approval to Dubai's 2024-2026 budget, setting the stage for a comprehensive plan to boost the city's economic prowess.

The total projected expenditure under this budgetary framework stands at an impressive AED246.6 billion, which translates to $67.14 billion.

For the upcoming year, 2024, estimated expenses are expected to reach AED79.1 billion, as reported by the UAE state-run news agency, Wam. It's a testament to Dubai's ambitious economic goals and its commitment to long-term growth.

The government's revenue projections are equally ambitious, with an expected total of AED90.6 billion. Of this, AED85.1 billion is allocated to the budget, while AED5.5 billion is earmarked for the general reserve, demonstrating a prudent approach to financial management.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of the Executive Council of Dubai, expressed the strategic importance of this budget, stating, "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."

A Closer Look at Dubai's 2024-2026 Budget

Breaking down the budget allocation, salaries and wages make up 26 percent of the total expenses, while grants and government support account for 23 percent.

Another 24 percent of total spending is directed towards general and administrative costs, reflecting a comprehensive approach to funding essential government functions.

Notably, construction projects are allocated eight percent of the total expenditure, highlighting the commitment to infrastructural development.

Under this budget, investments in infrastructure, encompassing various projects like roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources, and waste treatment facilities, will constitute a substantial 42 percent of total spending for the coming year.

The social development sector receives considerable attention as well, with as much as 34 percent of the total expenditure directed towards it.

This commitment underscores Dubai's focus on enhancing the overall quality of life for its residents.

Dubai's proactive approach to managing financial uncertainties includes allocating eight percent of the total budgeted expenditure to a special reserve.

This reserve acts as a safeguard against unforeseen global crises, demonstrating Dubai's commitment to fiscal responsibility.

Furthermore, Dubai's disciplined financial policy is evident in its debt service ratio, which is maintained at a level not exceeding seven percent of the total expenditure.

This ensures that the emirate remains financially robust and capable of managing its debt obligations effectively.

Recent economic indicators have been promising for Dubai, with the city's economy showing a growth rate of 3.2 percent year on year in the first half of 2023, reaching AED223.8 billion.

This growth has been supported by a 3.6 percent expansion in real GDP during the second quarter of the year.

Key drivers of this positive economic performance include growth in sectors such as transportation, wholesale and retail trade, financial and insurance, and real estate.

With this new budget in place, Dubai is poised for continued economic growth and development in the coming years.

Pramod Kumar / AGBI