His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his role as Ruler of Dubai and Vice President and Prime Minister of the UAE, has given his approval to the Dubai Government’s general budget for the fiscal years 2024-2026, with a total budget of AED 246.6B ($67.1B).
Additionally, Sheikh Mohammed has sanctioned Law No. (20) of 2023 concerning the Dubai Government’s General Budget for the Fiscal Year 2024, with an estimated expenditure of AED 79.1B ($21.5B).
Dubai’s 2024-2026 Budget: Driving Economic Recovery and Strategic Goals
This budget for 2024-2026 signifies Dubai’s economic recovery efforts and reinforces its commitment to advancing the macro-economy, in alignment with the objectives of the Dubai Strategic Plan 2030 and the Dubai Economic Agenda “D33”.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai said: “The 2024-2026 budget charts a financial roadmap for accelerating our ambitions to foster exponential economic growth and consolidate Dubai’s position as a global economic powerhouse.”
“Guided by the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, 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.”
“At the same time, the budget reflects our commitment to harmoniously balance the highest growth ambitions with economic stability, underpinned by prudent financial policies.”
“Reflecting the leadership’s progressive vision, the budget emphasises support for key sectors that are vital to the future and the emirate’s transition into a new phase of dynamic growth driven by digital and knowledge-based innovation.”
“It will also support our efforts to nurture homegrown entrepreneurship and create a high-growth environment for all sectors.”
“Furthermore, the financial sustainability, competitiveness and transparency embedded in this budget will make Dubai even more appealing to investors and businesses from across the world seeking new opportunities.”
“The new budget provides the perfect springboard for Dubai to realise its aspirations for building a resilient and prosperous tomorrow for the city and its people”.
Dubai’s 2024-2026 Financial Focus: Entrepreneurship and Innovation
The financial strategy for the upcoming three years (2024-2026) reaffirms Dubai’s commitment to fostering entrepreneurship, drawing in more international investments, enhancing social well-being, and solidifying its reputation as a hub of opportunity and innovation.
Furthermore, it underscores Dubai’s forward-looking vision by providing support for areas such as space exploration, digitalization, and artificial intelligence, according to Arabian Business.
Abdulrahman Saleh Al Saleh, Director General of the Department of Finance (DoF) for the Government of Dubai, stated, “The unveiled budget cycle presents an adaptable and progressive financial plan that will ensure fiscal sustainability for the government, while simultaneously boosting competitiveness and transparency, thereby enhancing Dubai’s appeal for foreign investments.
“The budget for the fiscal year 2024, which was approved with total expenditures of AED79.1bn ($21.5bn), meets the requirements of the objectives of both Dubai Strategic Plan 2030 and Dubai Economic Agenda D33.”
“It also works to achieve the vision of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, who directed us to increase government support for the sectors of social development, citizen housing, government work development, government digitalisation, scientific research, institutional agility, and global competitiveness enhancement”.
Strategic Financial Policies and Goals: Dubai’s Fiscal Reserves and Sustainability Plan
The Director General of the Department of Finance (DoF) for the Government of Dubai, Abdulrahman Saleh Al Saleh, also confirmed the Dubai government’s dedication to following the disciplined financial policies directed by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE.
He explained, “This has led to the establishment of a general reserve from annual revenues, which is projected to reach approximately AED 20.6B ($5.6B) over the planned three-year period from 2024 to 2026.
In addition to this, Dubai’s Supreme Fiscal Committee, chaired by Sheikh Ahmed bin Saeed Al Maktoum, decides on reserving annual surpluses, contributing to financial sustainability and bolstering the emirate’s financial standing.
DoF aims to achieve an operating surplus of up to 3.3 percent of Dubai’s GDP in the 2024-2026 financial plan, laying the groundwork for the emirate’s financial sustainability.
Dubai expects to attain estimated public revenues of AED 90.6B ($24.7B) due to its rapid and efficient recovery efforts from the global pandemic. They allocated AED 85.1 billion ($23.2 billion) to the budget and AED 5.5 billion ($1.5 billion) to the general reserve.
Al Saleh emphasized, “The announcement of expenditures totaling AED 79.1B ($21.5B) in the 2024 fiscal year budget conveys a positive message to the business community, indicating that Dubai is pursuing an expansionary financial policy, which instills great confidence in the emirate’s economy and attracts more direct investments.”
Dubai’s Budget Allocation: Salaries, Grants, and Admin Expenses
Salaries and wages make up 26 percent of total government expenses, while grants and government support expenses account for 23 percent. Additionally, the allocation of 24 percent of total expenses goes toward general and administrative expenditures.
As strategic projects are completed and public-private partnerships are activated, the government allocates 8 percent of total expenses to construction projects, signaling Dubai’s commitment to infrastructure development and strategic projects.
Dubai also prudently allocates a special reserve of 8 percent of the total expected expenditures in the budget to safeguard against potential global crises.
The government has maintained a debt service ratio that does not exceed 7 percent of its total expenditures as part of its disciplined financial policy.
In the 2024 budget, the government directs 34 percent of total expenses toward the social development sector, covering health, education, scientific research, housing, support for needy families, women and children, youth development, sports, and care for senior citizens and retirees, as well as individuals with special needs.
Furthermore, the allocation of 19 percent of total expenditures to the security, justice, and safety sector enhances its professional and proactive performance, positioning it as a sector of excellence on the global stage..
Infrastructure development, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources, and waste treatment facilities, accounts for 42 percent of total spending.
Dubai Government’s 5% Focus: Public Services and Innovation
The Dubai government prioritizes the public services sector, government excellence, creativity, innovation, and scientific research by dedicating 5 percent of total government spending to enhance performance and foster a culture of excellence, innovation, and creativity.
Arif Abdulrahman Ahli, Executive Director of Planning General Budget Sector at DoF, emphasized that the Dubai government’s adoption of a medium-term financial planning model and the three-year financial plan aligns with the vision of Sheikh Mohammed bin Rashid Al Maktoum and the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.
This budget for 2024 complies with the Dubai Strategic Plan 2030 development project and represents a transparent statement of the emirate’s stable financial position. The budget reflects disciplined financial policies based on best practices, with an expected operating surplus of 16 percent of total revenues ensuring Dubai’s financial sustainability.
To enhance government spending efficiency, DoF actively implements initiatives like the Unified and Green Procurement programs and actively fosters partnerships with the private sector. The Program Performance Budget Development plan links strategic planning with financial planning, emphasizing leadership and transparency.
Government entities are contributing to global benchmarks in budget preparation and performance, achieving high scores according to the “Government Performance Index” set by the global “Public Expenditure and Financial Accountability” program.
Fostering Development, Innovation, and Transparency: DoF’s Key Initiatives and Achievements
Jamal Hamed Al Marri, Executive Director of the Central Accounts Sector, highlighted DoF’s efforts to consolidate development and innovation, notably through the government’s smart service fees collection program, which experienced a 22 percent growth in the smart collection via digital channels in 2022.
He emphasized Dubai’s transition away from cash collection and its commitment to publishing financial data for increased transparency. The Financial Data platform enhances the availability of financial data to government entities, corporations, and individuals, boosting the emirate’s competitiveness.
DoF’s implementation of the International Public Sector Accounting Standards (IPSAS) has established Dubai as one of the first governments in the region to adopt these standards, which will significantly impact budget implementation and government performance development.
