The ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, has approved the emirate’s 2021 budget. The Dh57.1 billion growth-oriented budget seeks to expand on the emirate’s economic recovery as well as enhance social benefits and infrastructure. 41% of total spending will be allocated to the infrastructure and transportation sectors.
Next year’s budget is less than 2020’s budget of Dh66.4 billion. This decrease in spending is a reflection of falling oil revenues the UAE has suffered in the wake of historically low oil prices.
In a statement by the Dubai Media Office, “the newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the Covid-19 pandemic on the global economy.”
With projected revenues being Dh5 billion less than projected spending, Dubai is utilizing an expansionary fiscal policy. The policy is aimed at increasing the emirate’s competitiveness.