Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has granted his approval to the Government of Dubai’s general budget for the fiscal period spanning 2024-2026, with a substantial allocation of AED246.6 billion (equivalent to US$67.1 billion).
This budget underscores Dubai’s ongoing economic revival and its unwavering commitment to nurturing the macro-economy, in alignment with the objectives of the Dubai Strategic Plan 2030 development initiative and the Dubai Economic Agenda “D33.”
Sheikh Al Maktoum highlighted the significance of this budget, stating, “The 2024-2026 budget serves as a comprehensive financial roadmap to expedite our ambitions for exponential economic growth and to establish Dubai’s position as a global economic powerhouse. It will play a pivotal role in our quest 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, this budget underscores our commitment to meticulously balance ambitious growth targets with unwavering economic stability, anchored in sound financial policies.”
In line with Dubai’s forward-looking vision, the budget places a strong emphasis on supporting key sectors critical to the city’s transition into a phase of dynamic growth driven by digital and knowledge-based innovation. It also aims to foster homegrown entrepreneurship and create a high-growth environment across various industries.
Furthermore, the budget prioritizes financial sustainability, competitiveness, and transparency, making Dubai even more appealing to global investors and businesses seeking new opportunities. It provides a solid foundation for Dubai to realize its aspirations of building a resilient and prosperous future for the city and its people.
Over the next three years (2024-2026), Dubai remains steadfast in its commitment to fostering entrepreneurship, attracting foreign investment, promoting social welfare, and reinforcing its position as a hub of opportunity and innovation. The budget also demonstrates Dubai’s commitment to fields such as space research, digitization, and artificial intelligence.
The announcement of expenditures totalling AED79.1 billion (US$21.5 billion) in 2024 sends a strong and positive message to the business community, signalling Dubai’s pursuit of an expansionary financial policy and strengthening confidence in the emirate’s economy, attracting more direct investments.
Salaries and wages constitute 26% of total government expenditures, grants and government support expenditures make up 23%, and 24% of total expenditures have been allocated to general and administrative expenses. Despite the completion of many strategic projects and the development of public-private partnerships, the government allocates 8% of total expenditures to construction projects, emphasizing its commitment to infrastructure development.
Dubai is also ensuring preparedness for global crises by allocating a special reserve of 8% of the total expected budget expenditures. The city maintains a disciplined financial policy with a debt service ratio not exceeding 7% of total expenditures.
The 2024 budget allocates 34% of total government expenditures to the social development sector, covering healthcare, 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 disabilities.
Nineteen percent of total expenditures are dedicated to the security, justice, and safety sector, enhancing its professional capabilities on a global stage.
Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources, and waste treatment facilities, accounts for 42% of total spending.
The government places significant emphasis on supporting public services, government excellence, creativity, innovation, and scientific research, allocating five percent of total government spending to develop performance and foster a culture of excellence, innovation, and creativity.
The 2024 budget is meticulously designed to align with the Dubai Strategic Plan 2030 development project and maintains an expected operating surplus of 16% of total revenues, ensuring Dubai’s high levels of financial sustainability.
