In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved the Government of Dubai's general budget for the fiscal cycle of 2022-2024, with a total expenditure of AED181 billion.

 

He also approved Law No. (28) for the General Budget for the fiscal Year 2022, with AED59.95 billion expenditure.

 

The budget cycle will support Dubai’s efforts to stimulate the macroeconomy and the objectives of the Dubai Strategic Plan 2030. 

 

The new general budget reflects the emirate’s determination to accelerate post-pandemic economic recovery and achieve the leadership’s broader goals to stimulate entrepreneurship, enhance society’s happiness and consolidate Dubai’s position as a land of opportunities and innovation, reported Wam.

 

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, said the government continues to consolidate the emirate's position as a leading global commercial hub and raise its international competitiveness by creating new growth opportunities for vital sectors.

 

"The general budget for the fiscal cycle of 2022-2024, which reflects the fundamental strengths and stable base of the emirate’s economy, supports the realisation of its future economic aspirations, in addition to placing the emirate at the forefront of worldwide efforts to promote recovery," he added.

 

The three-year budget cycle focuses on increasing economic growth rates by activating the public-private partnership ecosystem and supporting the private sector to drive economic growth.

 

It also addresses the social aspects of healthcare and education, as well as digital infrastructure development and financial sustainability programmes.

 

Through its 2022 budget, Dubai continues to place a high emphasis on developing social services, and its healthcare, education and cultural sectors.

 

The budget also pays attention to citizens’ housing sector by raising the value of the housing loan to AED1 million and allocating more than 4,000 plots and houses with a total value of AED5.2 billion in the first phase of the housing programme for citizens in Dubai within a broader 20-year programme of AED65 billion.

 

The budget also focuses on developing the Social Benefits Fund by supporting families and people of determination, which is set to consolidate Dubai's position as one of the best cities in the world to live and work in.

 

Abdulrahman Saleh Al Saleh, Director-General of the Department of Finance of the Government of Dubai (DoF), affirmed the government’s commitment to continue its development efforts through the general budget cycle for the fiscal years 2022-2024, further raising financial sustainability and stimulating the growth of entrepreneurship in Dubai.

 

"Dubai government is eager to develop its financial plan annually to provide economic incentives that will have an impact on attracting more investments, improve the emirate's competitive position and achieve the goals of the Dubai Strategic Plan 2030," said Al Saleh.

 

"The 2022 budget strengthens recovery efforts and acts as a starting point within an integrated scheme of the 2030 plan," he added.

 

Arif Abdulrahman Ahli, Executive Director of Planning & Budget Sector at DoF, said, "The 2022 budget responds to the requirements of the Dubai Strategic Plan 2030 and is a transparent expression of the emirate's stable financial position."

 

"It also reflects disciplined financial policies based on international best practices. Achieving an operating surplus of 3 percent of total government revenues is an indication of the financial sustainability that the department is keen to ensure," added Ahli.

 

Projected government expenditure for 2022 Salary and wage allowances of the 2022 budget account for 34 per cent of total government spending, in accordance with the requirements of the new human resources law.

 

Grant and social support expenditure accounts for 21 percent of all expenditure, to meet the requirements of human and community development and provide public services to the residents of the emirate.

 

The government has allocated an amount of AED5.2 billion for construction projects, despite the completion of Expo-related projects, the activation of the Public-Private Partnership Law and the development of project financing mechanisms in the Dubai government through long-term financing.

 

The government has also allocated nine percent of the total expenditure to maintain the volume of investments in infrastructure, in line with Dubai's aspirations to be the world’s most preferred destination to live in.

 

Two percent of the total expenditure is allocated to the private reserve to support emergency preparedness programmes, while public debt accounts for six percent of the total expenditure, to follow a disciplined fiscal policy that ensures the budget fulfills all obligations.

 

Sectoral distribution of government expenditure The budget of the fiscal year 2022 reflects the government's commitment to the people. Government spending on the social development sector in areas of health, education, housing and women and children's care, as well as developing reading and coding initiatives and supporting athletes and people of determination, represents 30 percent of the total expenditure.

 

The government's concern for security, justice and safety sees 23 percent of the total expenditure being allocated to promote enhanced efficiency in the sector.

 

Dubai's keenness to develop its infrastructure and transportation, apart from hosting Expo 2020 Dubai, has led to an allocation of 42 percent of total spending to the sector. This reflects its pledge to deal with future commitments, support entrepreneurship and create an environment conducive for incubating micro ventures.

 

The emirate has also been keen to support the sectors of government excellence, creativity, innovation and scientific research by allocating five percent of the total government expenditure to develop performance and instill a culture of excellence.