Wednesday, June 19, 2019 10:55 AM

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Dubai allocates US$2.5 billion to develop infrastructure in 2019

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has signed the public budget law for the year 2019 with an allocation of Dh9.2 billion (US$2.5 billion) specifically for infrastructure projects.


The total budget plan for this year is Dh56.8 billion (US$15.4 billion), which is slightly higher than the Dh56.6 billion for 2018. This is Dubai’s biggest budget so far. Although most of the big projects are nearly done for the Expo, the Government maintained a Dh9.2 billion (US$2.5 billion) on infrastructure, slightly lower than last year, to ensure the competitiveness of the emirate of Dubai internationally.


With the focus on the development of infrastructure, Dubai intends to retain its competitive edge and continue to boost its real estate, aviation and tourism sector, with higher revenue targets, as it prepares to host Expo 2020 that is expected to bring millions of visitors to Dubai next year.


The Government of Dubai estimates that public revenues will reach Dh51 billion, an increase of 1.2 percent every year. This increase comes despite the economic incentive measures taken by the emirate's government, which features reduction of some fees, a freeze in fee increases for three years, and a decision to not impose any new fee without providing a new service.


The revenues are based on ongoing operations in the emirate and do not rely on oil revenues, which account only for 8 percent of total projected revenues for the fiscal year 2019. Non-tax revenues account for 64 percent of total expected revenue. Tax revenues account for 25 percent while revenues from government investment represent 3 percent.


The budget for the fiscal year 2019 demonstrates the government's commitment to promote human resources, the real wealth of the nation and expected to create 2,498 new jobs as part of the government's strategy for job creation. Salary and wage allowances within the budget account for 32 percent of total government spending.


The governments committed 22 percent to enhancing the security, justice and safety sector and 33 percent will be spend on social development sector in the areas of health, education, housing, women and children's care, as well as reading, translation and programming initiatives.


Dubai's commitment to the continued development of the economy, infrastructure and transportation sector has had the biggest impact on the UAE's global position, with 40 percent of total spending.