Dubai approves a $49.3 billion budget for 2022-2024: What does it mean for foreign companies?

Dubai approves a $49.3 billion budget for 2022-2024: What does it mean for foreign companies?

Dubai has been a magnet for foreign organisations since its inception. Its geographic and economic strategic position makes it a centrepiece for the Middle East, North Africa, and South Asia regions. Resultantly, Dubai is an ideal location for both small and medium-sized enterprises (SMEs) and global investors. It is an important address for operations and fertile land for new businesses to spread their wings and witness growth and success.

Now, how did Dubai get to where it is today? Most of Dubai’s success is credited to its forward-thinking leadership, and rightfully so. The leaders of this land, since its very inception, have been open to adopting global ways of doing business to make the economy rise to the level it stands today—tall and inspiring.

Over the past many years, there have been many leadership decisions that have not only made it possible for the emirate to reach new heights but also played a vital role in shaping the entrepreneurial and foreign direct investment (FDI) landscape here.

As per the Dubai FDI Annual Results & Rankings, 2020, continuous FDI flows and the emirate’s success in combating the COVID-19 pandemic effectively by initiating the recovery phase in record time remained the main reasons for the city’s leading position in regional and worldwide rankings as a major FDI hub in 2020. This trend is reflective of Dubai’s commitment to providing the best investment environment for foreign companies to set up a business, expand, and prosper, with the overarching aim of making the city the best place to work, live, and invest.

Adding to the advantages and hinting at a new empowered economy is the recent approval of the Government of Dubai’s general budget for the fiscal cycle of 2022–2024, earmarked at around $49 billion, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.

The budget allocation has been designed to support the efforts of the emirate to empower the macroeconomy and align with the objectives of the Dubai Strategic Plan 2030. This is a step that directly translates to more entrepreneurship, supportive policies, enhanced happiness, and the positioning of the emirate as a land of opportunities.

At the launch of the budget, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, was quoted as saying, “The Dubai government continues to consolidate the emirate’s position as a leading global commercial hub and raise its international competitiveness by creating new growth opportunities for vital sectors in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to enhance sustainable development and government performance.”

Dubai’s general budget for the fiscal cycle of 2022–2024, which reflects the fundamental strengths and stable base of the emirate’s economy, supports the realisation of its future economic aspirations in addition to placing the emirate at the forefront of worldwide efforts to promote recovery,” he added.

In explaining the budget further in a tweet, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, detailed the bifurcations the budget will work with. Some of the sectors addressed include general and administrative expenses, government grants, infrastructure, and special reserves.

The budget is therefore one of many steps that Dubai has taken to further nurture its land and make it inviting for foreign businesses. This is a step that hints at a brighter future in the emirate for entrepreneurs, small and medium businesses, and any foreign-established business looking to reach unparallel heights.

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