H.H. Sheikh Mohammed, the Ruler of Dubai and Vice President and Prime Minister of the UAE approved AED 46.1 billion Dubai budget for 2016, which aims to create 3000 new jobs and provide fiscal stimuli to boost social and economic growth of the Emirate.

Compared to 2015s budget of AED 41.7 billion, the 2016 budget is strong testament of Dubai’s continued economic growth and revenue base as it is increased by 12% with operating surplus of AED 3.4 billion. Moreover, Dubai had no budget deficit in 2015 though the expenditures increased by 12% which supported macroeconomic growth in the Emirate. According to Abudl Rahman Saleh Al Saleh, Director General of Department of Finance, Government of Dubai, the budget will continue to stimulate economic growth as 2016 budget focuses spending primarily on social sector, infrastructure, security, justice and safety.

Key Sectors Focused – Budget 2016

Within the social development, key emphasis is given on education, health, housing and community development, which accounts for AED 16.9 billion (37%) of government expenditure compared with AED 14.3 billion in 2015. Likewise, AED 16.6 billion (14%) is allocated to infrastructure, transport and economic development in line with the hosting of EXPO 2020 event whereas AED 9.6 billion (21%) is allocated to support the security, justice and safety sector.

Revenue Sources

In terms of revenues, Dubai mainly relies on government fees and fines (contributes 74%) from sectors such as Services (Logistics, Real Estate, Hospitality, Social), Trade, Manufacturing and Construction etc. Likewise, Customs and Duties on foreign banks contributes 19% while oil contributes 6% to the Emirate’s economy.

Economic Impact of Budget 2016

The increase in budget will lead to the creation 3000 jobs as Dubai Government plans to focus on social and economic development of the Emirate. Furthermore, the budget will allow the government to sustain economic growth through investment in infrastructure. Even though, the region is witnessing economic slowdown due to lower oil prices, through 2016 Budget, Dubai remains committed towards investing in social and infrastructure sectors apart from withstanding lower oil prices through economic diversification.

Economic Forecast – 2016

Dubai economy is set to expand by 4% in 2016, attracting investors and job seekers from all across the globe. Major sectors of Dubai economy (trade, logistics and tourism) will benefit from the lower oil prices whereas the lifting of the sanctions on Iran will be a blessing in disguise for Dubai allowing it to benefit from its geographical position. According to IMF Forecast, the ending of sanctions on Iran will inject US $13 billion in to the UAE economy between 2016-18.

Investment Opportunities

The announcement of Dubai Budget 2016 combined with the progress on EXPO 2020 event and growing local and tourist population, Dubai will continue to provide massive investment opportunities in various sectors of the economy which includes Education, Retail, Logistics, Trade and Tourism especially in Dubai Land and Dubai South which are the newest mixed-use real estate developments.

Research Konnection – This Research Report is compiled by Team Research Konnection; A Dubai Based Market Research Firm that specializes in Investment Research and Economic Feasibility Study. If you are looking for investment advice or more detailed business analysis, then feel free to konnect with us on

Author: RKonnect
The author is the Managing Director of Research Konnection, a Dubai based market research and consulting firm that helps local and international companies to identify emerging business opportunities and successfully expand in the Gulf region. The author can be reached at
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