VP okays AED56.6bn 2018 Dubai budget

Dubai / WAM

In his capacity as the Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum, approved the Government of Dubai’s 2018 General Budget Law No. (21) for the year 2017, with AED 56.6 billion expenditure, according to the new budget classification.
Featuring a 19.5 % year-on-year increase, the budget for the fiscal year 2018 comes in line with the Dubai Strategic Plan 2021’s targets and future commitments, especially Expo 2020. The budget features a rise in infrastructure spending, which makes up 21 percent of the total government expenditure. This reflects the directives of His Highness the Ruler of Dubai to raise infrastructure efficiency in Dubai in order for the emirate to become the preferred destination for living, tourism, and business across all sectors.
“Over the coming years, Dubai Government actively seeks to improve public budget performance continuously, in order to achieve financial sustainability, fulfil the emirate’s commitments, and realise the strategic objectives of Dubai 2021 Plan. Further, this aims to make the upcoming mega international event, Expo 2020 Dubai, one of the best in the history of Expo exhibitions, in line with the vision of our prudent leadership, aiming to make Dubai always ready to impress the world”, said Abdulrahman Saleh Al Saleh, Director General, Dubai Government’s Department of Finance (DOF).
“The Expo presents challenges that require us to focus on availing construction expenses needed for the mega infrastructure projects related to Expo 2020 Dubai. Such projects will only benefit the success of the huge international expo upon launching in three years, but is also expected to serve the emirate for decades to come, especially in light of Dubai’s noticeable urban expansion towards the Expo project area” Al Saleh continued.
The 2018 Budget has also shown the importance that the government gives to social services, including healthcare, education, culture and housing, which have contributed to the high rating of the UAE in global competitiveness indices, and its top regional ranking in the happiness index.
The government has managed to achieve financial sustainability by achieving an operating surplus of AED 2.5 billion. This illustrates the breadth of the financial solvency of Dubai, in accordance with the directives of the Dubai Supreme Fiscal Committee. The Public Private Partnership law forms an ideal platform to build modern practices in the management of financial resources efficiently and effectively.
Over the coming years, this law will contribute to the implementation of some public projects in partnership with the private sector, which will enhance creativity and innovation, further raise the government’s performance levels, enhance government efficiency, and enhance transparency.
Dubai expects estimated public revenues of AED 50.4 billion, with a 12% increase over the fiscal year 2017. Such revenues depend on the approach adopted by Dubai over the past decade that has led to no dependence on oil revenues and greater government revenues. Oil revenues represent 6% of total expected revenues for the fiscal year 2018, which will enhance emirate’s financial sustainability.