Sheikh Mohammed announces Dubai's ambitious AED 246 billion budget

Dubai is once again making headlines with its grand ambitions, and this time it's about their impressive budget for 2024-2026. In case you missed that one, check out our guide here to get up to speed!

The city that's known for its futuristic skyline and rapid growth is set to spend AED 246.6 billion (that's around $67.1 billion) during this period. And we know everything about it!

This budget has been laid out in a move that reflects the emirate's economic recovery and its commitment to propel its growth, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, gave the green light to the Government of Dubai's general budget. The budget for the fiscal cycle of 2024-2026 includes an estimated AED 79.1 billion (approximately $21.5 billion) in expenditures, and the rest is for other industries.

Let us break it all down for you…

Driving economic growth and innovation

This generous spending plan is not just about numbers; it's a roadmap to accelerate economic growth, to support the Dubai Strategic Plan for 2030’s development project, and to boost the Dubai Economic Agenda "D33."

Under the visionary leadership of Sheikh Mohammed bin Rashid Al Maktoum, this budget will play a crucial role in Dubai's journey to double its GDP and become one of the world's top three urban economies in the next decade. But it's not just about growth; the budget also emphasises economic stability and prudent financial policies.

Supporting key sectors and nurturing innovation

Dubai's budget is mainly set for its commitment to key sectors that are vital for the future, and the city’s growth. It's all about transitioning into a new era of dynamic growth driven by digital and knowledge-based innovation.

This budget is designed to give Dubai a springboard to a resilient and prosperous future, one that promises growth, innovation, and boundless opportunities. It supports various sectors, including social development, housing, scientific research, digitization, and artificial intelligence.

The financial sustainability, competitiveness, and transparency woven into this budget will make Dubai an even more attractive destination for investors and businesses seeking new opportunities.

Dubai’s financial sustainability

Abdulrahman Saleh Al Saleh, Director General of the Department of Finance (DoF) for the Government of Dubai, emphasises the importance of financial sustainability, competitiveness, and transparency in this budget. Dubai's disciplined financial policies have led to the creation of a general reserve, expected to reach around AED 20.6 billion ($5.6 billion) over the next three years (2024-2026).

The operating surplus target is up to 3.3 percent of Dubai's GDP during this period, ensuring financial sustainability for the emirate. These measures are in line with Dubai's commitment to implementing disciplined financial policies and ensuring a stable financial position.

Dubai’s economic resilience

Despite the challenges posed by the global pandemic in 2020, Dubai's efficient recovery procedures have paved the way for estimated public revenues of AED 90.6 billion ($24.7 billion). A significant portion of these revenues, AED 85.1 billion ($23.2 billion), has been allocated to the budget, with AED 5.5 billion ($1.5 billion) earmarked for the general reserve.

This allocation of AED 79.1 billion ($21.5 billion) for the fiscal year 2024 sends a clear message to the business community that Dubai is pursuing an expansionary financial policy, fostering confidence in the emirate's economy and attracting more direct investments.

Balancing growth and stability

Dubai's budget wisely allocates resources to various sectors, including social development, security, infrastructure, and public services. This balanced approach reflects Dubai's determination to continue developing its infrastructure and delivering strategic development projects while maintaining a disciplined financial policy.

Dubai is also prepared for unforeseen global crises by setting aside a special reserve of eight percent of the total expected expenditures in the budget. This forward-thinking approach ensures the emirate's financial stability.

With a robust budget in place and a clear vision for the future, Dubai is poised for continued growth, innovation, and success. As a city that never stops dreaming big, it's no surprise that its budget reflects its lofty ambitions.

Want to know more?

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