Dubai's 2014 budget approved
Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum has approved the city's budget for next year.
According to the Khaleej Times, spending next year will be up 11 per cent, with an operating surplus of AED 2 billion (£336 million). For the current period, this excess was only AED 204 million, suggesting significant improvement.
This is important news for investors, as it suggests a lot about the emirate's current and future wellbeing. As can be seen, increased spending shows confidence and suggests improvements in Dubai, with plenty of opportunities for further investments, such as with The First Group.
The Department of Finance (DoF) also pointed out the emirate would aim to increase spending and achieve all its goals while also reducing its deficit. During this upcoming financial year, the deficit will not exceed 0.26 per cent of Dubai's gross domestic product (GDP). Last year, DoF set a goal of 0.5 per cent of GDP and it is looking to expand upon this goal.
In terms of revenue, Dubai's largest expected area of income by far is fees, amounting to 67 per cent of total government profits - an anticipated rise of 24 per cent on this year's current contributions. This is not due to increased costs, as they have not raised since the economic crisis, and, as such, they represent the rising volumes of businesses setting up in Dubai, as well as its economic growth.
Dubai's Expo 2020 bid is another strong indicator for the financial year, with the final decision from the International Exhibitions Bureau expected tomorrow (November 27th).
The sheikhdom has already pledged transport improvements and other investments should it win, which will again provide a benefit to investors looking to capitalise on the success. The potential billions in funding could further improve the city, with benefits lasting long after the event itself.
According to a recent report from CBRE, a successful bid by Dubai will have a 'resoundingly positive effect' on its real estate markets, and suggests prices are already going up in anticipation.