The UAE Prime Minister and ruler of Dubai has approved a budget worth AED 46.1 billion for the year 2016. The zero deficit budget is an increase of 12% compared to value of the budget of 2015. This year’s budget has an operating excess of AED 3.4 billion with an aim to create 3,000 jobs and provide the much required force to boost economic growth.
The 2016 budget focuses primarily on social development sector followed by other sectors including infrastructure, security, justice and safety.
Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 12 per cent for fiscal year 2015, which pushes the emirate’s macroeconomic growth to be in line with the planned levels,” opined Director General of Government of Dubai’s Department of Finance.
Focus on Infrastructure Development:
The government has allocated 14% of its expenditure on infrastructure development. The size of investment on infrastructure is expected to continue over next five years. Dubai will keep on investing in infrastructure to maintain economic growth.
In the year 2015, government had spent AED 14,773 billion whereas the current allocation of fund stands at AED 16,558 billion. Government’s spending on Infrastructure, Transportation & Economic Sector sees a year-on-year increase of more than 12%. According to analysts, Dubai’s renewed focus on infrastructure is related to the EXPO 2020 and will encourage economic development across the UAE.
Overall, the budget for 2016 focuses on the social development and Infrastructure sectors which will augur well for the economy of the UAE. Looking at the current budget allocation on infrastructure development, the real estate sector is likely to see an improved growth. If you are a property investor, this is the right time to invest on real estate sector of DubaiPost Property Post Requirements Investment Options