Dubai Unveils 2020 Budget, Projects Record Spending

Business

December 30th, 5:59am

Asharq Al-Awsat

A general view of Dubai, UAE. (AFP)

Dubai unveiled a 2020 budget on Sunday, projecting record spending of $18.1 billion, up 17 percent on this year. The Gulf city state expects revenues too to rise sharply next year as it hosts Expo 2020, the global six-month trade fair set to open on October 20. But it still foresees a deficit for the fourth year in a row of $700 million. The government is hoping that Expo will draw some 25 million visitors, many of them from abroad, and is projecting a 25 percent increase in revenues to $17.4 billion. It also announced a special reserve of 3% of total expected expenditures as part of preparation for the Expo 2020. Excluding investment spending and non-recurring revenue it could achieve an operating surplus of 1.96 billion dirhams in 2020, the government said. It had projected an operating surplus of 850 million dirhams in 2019. Non-tax revenue will account for 60% of total expected revenue, while tax revenue should account for 29%. Revenue from government investment represent 5% and oil revenue will account for 6%. Dubai is the only government in the Gulf not dependent on hydrocarbon revenues, and projects around 94 percent of income to come from non-oil sources. In 2020, Dubai will continue supporting social services, including health, education and housing, and working on developing the Social Benefits Fund and supporting families, as part of the objective of making Dubai one of the most livable cities in the world. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, also approved a three-year budget cycle for the government of Dubai, for the 2020-2022 period. The three-year budget cycle meets the aspirations of Dubai’s future, and confirms its determination to continue raising people's happiness and stimulating entrepreneurship, said the United Arab Emirates news agency (WAM). The plan highlights the government’s keenness to provide the highest levels of economic stability and stimulus to the emirate's business sectors. It also gives a clear picture of the government's economic goals in the next three years, which supports the medium-term planning of the economic sectors and provides a clearer view of the private sector.

from Asharq AL-awsat https://aawsat.com/english/home/article/2058141/dubai-unveils-2020-budget-projects-record-spending