General Budget for 2023-2025 Will Promote Entrepreneurship & Foreign Investment In Dubai

In his ability as Ruler of Dubai, H.H Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister of the UAE, has sanctioned the general budget of the Dubai government for the financial cycle of 2023-2025, with overall expenses of AED205 billion

The budget completes Dubai’s aspirations and confirms its determination to constantly evolve and motivate entrepreneurship, alluring more overseas investment, boosting social welfare, and consolidating Dubai’s status as a land of opportunity and creation. 

The financial scheme for the next three years presents the government of Dubai’s commitment to giving the highest economic sustainability and boosting growth throughout the Emirate’s business industries. The scheme also provides a clear image of the economic targets of the government throughout this duration and supports medium-term planning for different economic sectors. 

H.H. the Ruler of Dubai even granted Law No. (23) of 2022 about the General Budget of the Dubai government for the financial year 2023. The overall expenses of the government for the 2023 financial year are estimated at AED67.5 billion, which shows Dubai’s economic recovery and increases its ambitions to increase the macro-economy and support the purposes of the Dubai Strategic Plan 2030. 

In its 2023 budget, Dubai continues to concentrate on social services and the growth of the education, health, and culture industries. The budget even places great priority on the housing industry through the housing program of Dubai as part of a scheme for the next 20 years. The budget is even concentrated on evolving the social advantages fund to support families, people of determination, and individuals with limited earnings. 

Motivational Message 

Abdulrahman Saleh Al Saleh, Director-General of the Department of Finance for the Dubai Government, stated the general budget cycle for the 2023-2025 duration gives a base for improving financial stability and promoting entrepreneurship in Dubai. 

“The three years budget cycle gives a robust pro-development message to Dubai’s business industries and shows Dubai concentrates on evolving its financial scheme yearly in line with international evolvements. Dubai looks to give economic industries to entice acquisitions, improve Dubai’s competitiveness, and contribute to the execution of advantages and goals that form a portion of the Dubai strategic scheme 2030 and beyond.” 

“The 2023 budget responds to alter resulting from international economic inflation with the structure of the incorporated scheme to execute the Dubai strategic scheme 2030 and get the desire of H.H Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, who led the government to boost support for families and people of determination, and improve government functions, institutional agility, and international competitiveness to entice more overseas acquisitions.” 

The Director-General of the Department of Finance even affirmed the government of Dubai’s commitment to executing the directives of H.H Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance, Deputy Prime Minister, to adjust disciplined financial guidelines that can strengthen the Dubai’s financial stability and the governance of financial resources, and support to boosting economic development. 

Projected Revenues in 2023 

Consequently, with Dubai’s quick recovery from the results of the global pandemic, the government of Dubai hopes to get estimated public earnings of AED 60 billion, a boost of 20% over the financial year 2022. The UAE and Dubai are among the nations and cities that have recovered the quickest from the pandemic, which is proven by the rise in the volume of tourism flows and the high rates of air traffic and economic activity in the emirate. 

Oil revenues show only about 5% of the overall hoped earnings for the year 2023, which confirms the financial stability of Dubai. 

Projected Expenses in 2023 

Al Saleh stated – “The growing profile of Dubai as one of the finest cities of the world to live and work and the finest international tourism and acquisition locations, vindicated by its top ranking in international indices, has directed to a surge in population development. This has directed to a robust push to further extend infrastructure, increase the living standard and improve the well-being and happiness of people, in line with the directives of the Ruler of Dubai.” 

Grants and social support expenses account for 24% of the overall budget expenses in 2023. The general and administrative expenses make a similar ratio, while the government has given 7% of overall expenses to construction assignments. This sends a robust signal to the private industry about the determination of Dubai to constantly develop its infrastructure and deliver more strategic evolvement assignments. It in turns powers the capability of Dubai to increase human growth, expand high support for residents and citizens and improve infrastructure. 

Dubai is even eager to hedge against any case that can be consequent to the international pandemic by giving a particular reserve of 5% of the overall hoped expenses in the budget. To make this capable, Dubai has sustained a debt service percentage that doesn’t exceed 6% of its overall expenses, as a portion of its disciplined financial guidelines. 

Sectoral distribution of expenses in 2023 

A total of 34% of overall government expenses of the 2023 budget goes to the social evolvement industry in the sectors of education, housing, health, scientific research, care for needy families and women and kids, translation, reading, and programming industries, growth of youth and sports, care for elder people and more. Expenses in this sector show a boost of 4% more than the 2022 budget. 

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