His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, in his capacity as Ruler of Dubai, has adopted a three-year budget cycle from 2020 to 2022, with a total expenditure of 196 billion dirhams, in continuation of the approach of the Dubai government in enhancing the Emirate's macroeconomic .

The budget cycle for the three years came to meet the aspirations of the future, and confirmed Dubai's determination to continue to delight the community and stimulate entrepreneurship.

The financial plan highlights the interest of the Dubai government in providing the highest levels of economic stability and stimulus to the business sectors in the emirate, by giving a clear picture of the government's economic goals during the next three years, which supports the medium-term planning of the economic sectors in the emirate and provides a clear view of the private sector working in it.

In the same context, His Highness Sheikh Mohammed bin Rashid Al Maktoum adopted Law No. (12) of 2019 on the budget for fiscal year 2020, with a total expenditure of 66.4 billion dirhams, to become the largest budget in the history of Dubai, and it comes to meet the emirate’s ambitions to stimulate the macro economy and support The establishment of "Expo 2020 Dubai" to be the special and most prominent session in the history of the largest and most prestigious exhibition in the world.

Dubai continues in the budget for fiscal year 2020 to pay attention to social services, which include health, education, culture and social housing, in addition to developing a social benefits fund and supporting and stimulating families, which made it one of the best cities for living in the world.

The Director General of the Department of Finance in the Dubai Government, Abdul Rahman Saleh Al Saleh, pointed out that «the development of tight plans» was one of the most prominent commandments of His Highness Sheikh Mohammed bin Rashid Al Maktoum ten of the government administration, and that the Dubai government, represented by the Department of Finance, was inspired by this will in launching the budget cycle 2020-2022, stressing the department's endeavor to continuously develop the performance of the general budget in order to confirm financial sustainability and work to stimulate entrepreneurship in the emirate, by enhancing the incentives of the business sector in the emirate for the next three years.

Al Saleh emphasized that the Dubai government has taken a three-year medium-term financial planning approach and announced a financial plan, the first in its history, to implement the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and President executive board.

He added that Dubai develops its financial plan annually, to provide economic incentives that have an impact in attracting more investments and work to improve the emirate's competitive position, and implement its benefits and targets from the strategic plan 2021 and beyond, explaining that the fiscal year 2020 budget was approved with a total of expenditures that exceeded last year's expenditures by 16.9 %, In support of the vision of Dubai 2021 and Expo 2020 Dubai, as well as moving forward in supporting the emirate's overall economy.

The Director General of the Department of Finance said, “The Dubai government may be able to achieve an operating surplus of 1.96 billion dirhams due to the adoption of disciplined financial policies, which contributes to the development of infrastructure programs for the emirate, and confirms the financial sustainability policy pursued by the emirate.”

For his part, Aref Abdel Rahman Ahly, the Executive Director of the Planning and General Budget Sector in the Department of Finance confirmed that the fiscal year 2020 came in response to the requirements of Dubai Plan 2021 and beyond, adding that it expresses transparently the stable financial position of the emirate, through the implementation of disciplined financial policies that depend on the best International practices in this regard.

My family stressed that achieving an operational surplus is what achieves the desired financial sustainability of the Emirate, stressing that the Finance Department «seeks to develop programs concerned with raising the efficiency of government spending by launching a unified procurement program, and stimulating partnership with the private sector, along with its constant quest to develop and review the budget».

It is expected that the Dubai government will achieve general revenues of 64 billion dirhams, an increase of 25% over the fiscal year 2019, despite the stimulus economic decisions made by the emirate, which would have reduced some fees and froze the increase in any fee for a period of three years and not impose Any new fee without new service.

These revenues depend on the current operations in the emirate, which Dubai has taken over the past decade in not relying on oil revenues, which represents 6% of the total expected revenues for the fiscal year 2020, and keenness to develop the government revenue structure, which would enhance the financial sustainability of the emirate .

Non-tax revenue from fees represents 60% of the total expected revenue, while tax revenue represents 29%, and government investment return revenue represents 5% of total expected revenue.

The Executive Director of the Central Accounts Sector of the Finance Department, Jamal Hamed Al-Marri, affirmed that the department is sparing no effort to consolidate the elements of government competition for the emirate, indicating its continued keenness to develop programs that improve the performance of public finance and achieve financial excellence.

He added: “Dubai’s success this year in the implementation phase of implementing international accounting standards in the public sector will support the government decision-making process, ensuring the continuity of government financial efficiency, and improving the quality and comprehensiveness of financial reports, in line with the Dubai Strategic Plan 2021, until it establishes its pillar Supporting the pioneering approach in government work based on efficiency, accountability and creativity, in addition to this development will make Dubai the first government in the region to implement international standards for government accounting, and will have the greatest impact in the implementation of the budget and the development of ways of outstanding government performance ».

The announcement of the Dubai government on the largest budget in its history sends a clear message to the business community that Dubai is pursuing an expansionary fiscal policy, which gives great confidence to the emirate's economy and contributes to attracting more direct investments to it. This budget serves the requirements of population growth and benefits arising from the hosting of Expo 2020 and the continuous development of infrastructure, and all other goals contained in the Dubai Plan 2021, aimed at raising the level of the welfare and happiness of citizens and residents in the emirate, in a manner that meets the directions of the leadership.

The government has approved an amount of eight billion dirhams, to maintain the size of infrastructure investments compatible with Dubai's aspirations to be the world favorite city for residency, in conjunction with the completion of some projects and the activation of the public-private partnership law and the development of project financing mechanisms in the Dubai government through financing means Long term. The percentage of spending on construction projects reached 12% of government spending, indicating the continued development of the infrastructure to host the Expo, which will remain later to serve all economic and social sectors in the emirate.

Dubai announced for the first time a special reserve of 3% of the total expected expenditures, in implementation of the principle of hedging and preparing for the extension of the Expo period, and achieving the best hosting in the history of the Expo, as usual, Dubai in its desire to dazzle the world.

Dubai maintained a debt service ratio of no more than 5% of its total expenditures, as a result of adopting a disciplined financial policy that ensures that budget execution is free of any financial constraints.

The fiscal year 2020 budget showed the government's interest in the human being that His Highness Sheikh Mohammed bin Rashid Al Maktoum sees as the true wealth of the homeland. The spending on the social development sector in the areas of health, education, housing, women and child care, adoption of initiatives to develop reading, translation, software preparation, and attention to youth and sports represented 30% of the total government spending in the 2020 budget.

Dubai's interest in infrastructure and its continuous development has pushed for this sector to acquire 46% of the total spending, which shows the emirate's seriousness in dealing with future benefits, support for small projects, interest in entrepreneurship, and the promotion of the nurturing environment for micro-projects and their sponsorship.

19% for security, justice and safety

The government embodied the interest in the security, justice and safety sector by allocating 19% of the total spending to support and develop this sector, and made it able to play its role professionally and proactively until it became one of the sectors that the emirate boasts internationally, thanks to the progress and prosperity achieved by the emirate, making it a destination of choice for tourists and those who wish to Work and investment.

30% for salaries and wages

Salaries and wages constituted 30% of the total government expenditures, according to the requirements of the new human resources law, and grant and support expenses constituted 24%, to meet the requirements of human development and provide adequate support to citizens and government agencies that provide public services to the residents of the emirate.

5% for government excellence

The Emirate of Dubai is concerned with supporting the public services sector, government excellence, creativity, innovation and scientific research, by allocating 5% of total government spending to develop performance and consolidate a culture of excellence, innovation and creativity.

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“2020 Budget” is a clear message to the business community that Dubai is pursuing an expansionary fiscal policy.

46% of the infrastructure share of total spending in the 2020 budget.

- 64 billion dirhams expected public revenue, an increase of 25% over the fiscal year 2019.

- 30% of government spending in 2020 for the social development sector, in areas such as health, education, housing, and women's and children's care.

The financial plan highlights the interest of the Dubai government in providing the highest levels of economic stability and stimulus to the business sectors in the emirate.

Dubai maintains a debt service rate of no more than 5% of its total expenses, as a result of following a disciplined financial policy.

Abdul Rahman Al-Saleh:

«The 2020 budget was approved with a total expenditures that exceeds the expenditures of the previous year by 16.9%»