Mohammed approves 2014 Dubai budget

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved Dubai's budget for the year 2014 based on a set of core principles, namely:

- Continue to stimulate economic growth
- Accentuate the social services sector
- Operating surplus of Dh2 billion
- Budget deficit does not exceed 0.26% of GDP of the emirate

The budget directly applies directives as set by His Highness to focus on a prudent fiscal policy that provides the stimuli necessary to economic growth in the emirate, raise the efficiency of government agencies to provide the best services and health and social care for all citizens and residents.

Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance (DOF) in Dubai, indicated that Dubai has succeeded in reducing the gap in the budget of 2014 between public revenues Dh37,000 million and public expenditures Dh37,882 million, by 41% compared to fiscal year 2013.

Al Saleh clarified the possibility of balancing the 2014 budget but explained the government’s preference to expand its expenditures to support the emirate's economy and contribute to the higher rates of economic growth -  through increased public spending, an increase of 11% from the budget of the fiscal year 2013- without sacrificing the strategic objectives of the government and work under the directions of Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and Chairman of the Executive Council on the implementation of approved financial plans to support all the strategic sectors of the Government of Dubai.

Government revenues 2014

Revenue figures show the success of the Dubai government to increase public revenues for the fiscal year 2014 by 13% compared to revenue for the financial year 2013.

The expected increase of fees- representing 67% of the total government revenue - by 24 per cent compared with 2013, reflects the expected growth of the emirate and the development and diversity of government services and this is clearly shown through the policy of not raising any government fees in the emirate since the economic crisis. This rise however, is due to real economic growth that will persist according to the Department of Finance.

The tax revenue increased by 1% representing 21% of total government revenues and includes customs and foreign banks taxes. This increase indicates the development of the performance of customs which explains the Emirate’s economic growth. Moreover, the development and increase of bank taxes are good indicators of the evolving economic situation in the emirate.

The net oil revenue accounted for only 9% of government revenues of the emirate.
The emirate was keen on reducing the budget allocations from government investment returns in support of the increased allocations reinvested contributing to the development of the emirate's economic growth.

Government expenditure 2014

The graph shows the distribution of government expenditures where salaries and wages represent 37%, which confirms the government's support to the human resources and its keenness to provide 1650 job opportunities for its citizens in 2014, which is a continuation of the localization policy the government is adopting where it has adopted 1,600 jobs during the fiscal year 2013 and will continue to do so. 

The Goods & Services expenses and capital expenditures, grants and support represent 32% of total government spending and this figure confirms the government's keenness to maintain the development of government institutions and support to provide better government services to its citizens and residents.

The Government of Dubai continues to support infrastructure projects through the provision of 17% of government spending for the completion of infrastructure and developmental projects in the emirate (Development Expenditures), that in accordance with the plans laid out to effectively contribute to raising economic growth rates and stimulating domestic and foreign investments.

The emirate plans to launch new projects in the coming period to support Expo 2020, which will make the emirate even more attractive to investments.

Therefore, it begun the preparation for the expansion of infrastructure projects through increased allocations within the budget of fiscal year 2014 to 6,350 million dirhams, an increase of 13% from 2013 and Dubai plans to maintain the size of its investments in infrastructure through the next five years.

The graph also shows the seriousness of the Government of Dubai in dealing with Payments by channelling 11% of the total spending for Bonds Interest Payments.

The distribution of government expenditures at the level of key sectors shows the government's interest in the individual, which according to His Highness is the real wealth of the nation. Hence, this is reflected on the percentage allocated to the social development sector including areas of health care, education, housing and community development amounting to 35% of government spending.

Furthermore, the Dubai government supported social services through the establishment of public benefits fund to support families of breadwinners, mother and child care, those with special needs, youth care and sports clubs. Based on request of His Highness a fund was established to support small and medium-sized projects for young people to create a generation of entrepreneurs.

The security, justice and safety sector, which is a real pillar and supports the human feeling of security and safety contributing to higher rates of economic growth and a sense of citizenship. The budget allocated 21% to support this vital sector.

The infrastructure, transportation and economic sectors are vital sectors to the Government of Dubai and despite the completion of many of the larger projects, the budget allocated 37% for these sectors.

Arif Abdul Rahman Ahli, Executive Director of Budgeting and Planning, confirmed that the Government of Dubai when working on the preparation of the fiscal year 2014 budget has adhered to the fiscal policy rules by using recurring revenues to finance recurring expenses and achieving a surplus estimated at Dh2 billion contributing to the financial sustainability of the emirate. Moreover, the government is committed not to use oil revenues to fund infrastructure projects.

Add to that, the government was able to reduce the budget deficit to record levels, where the deficit ratio did not exceed 0.26% of GDP, which shows the government's seriousness in dealing with the deficit, though it did not exceed the universally compatible ratios.

Jamal Al Marri, Executive Director of the Central Accounts, pointed out that the Department of Finance is working closely with government entities to prepare a plan for budget implementation and to provide required funds in accordance with the priorities of the government.

Mohammed bin Rashid inaugurates Global Islamic Economy Summit

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has stressed that investing in the future is a core of the country s strategies and policies.

He added that the UAE is steadily heading towards adding the Islamic economy as a new area of excellence in the international community.

Sheikh Mohammed added that the excellence is not to imitate others, but rather innovating a new quality services and initiatives that add value to the Islamic economic sector and consolidate Dubai s competitiveness as a capital of Islamic economy.

He said, "If history is being written now, the future is being made here in the UAE.  With determination of our people, we are set to be the world’s Islamic economy capital".

Sheikh Mohammed’s statement  was made after he inaugurated the Global Islamic Economy Summit (GIES), in presence of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Sheikh Majed bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Mohammed bin Abdullah Al Gargawi, Minister for Cabinet Affairs, Chairman of Executive office of the Ruler of Dubai and Chairman of the Supreme Committee for the Development of the Islamic Economy's sector and a number of ministers, Arab and foreign representatives and senior officials.

Over 2,000 attendees today took part in the first day of the Summit, which is organised by Thomson Reuters and the Dubai Chamber of Commerce, in conjunction with the Dubai Capital of the Islamic Economy initiative.

The Summit kicked off with a keynote speeches delivered by Obaid Al-Tayer, UAE Minister of State for Financial Affairs, and Ahmed Ali Al-Madani, President of Islamic Development Bank.

Sheikh Mohammed also attended the Islamic Economy Award ceremony, which was held in conjunction with the GIES, in accordance with Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum directives.

The UAE Vice President presented Dr Ahmed Ali Al-Madani, President of the Islamic Development Bank, with the Life-time Achievement Award, for his key role in supporting the Bank’s goal to support the private sector in the Islamic world.

Sheikh Mohammed also awarded the winners across the 14 different categories of the Award, which was launched in September. The Award aims to acknowledge efforts made by business leaders in innovating the best solutions globally that comply with Islamic Shariah.

The winners are:

- Sukuk: Majid Al Futtaim Group, UAE

- Islamic Microfinance: Kiva Microfunds, USA

- Halal Food: Saffron Road, USA

- Waqf: Awaqf New Zealand, NZ

- Family Travel: TimeZ5, UAE

- Halal Pharmaceutical and Cosmetics: Tanamera Tropical Spa, Malaysia

- Islamic Insurance: ACR Retakaful Holdings, Bahrain

- Halal Media/ Entertainment: Awakening Worldwide Ltd, Egypt

- Islamic Commercial Banking: CIMB Islamic, Malaysia

- Halal Fashion/ Islamic Art: Peter Sanders Photography, UK

- Islamic Fund Management: Fajr Capital, Asiya Investments, SEDCO Capital and Saturna Capital

- SME Development: Saudi Economic and Development Company (SEDCO), KSA

- Islamic Economy Infrastructure (Research & Education): Ethical Institute of Islamic Finance, UAE

- Islamic Economy Infrastructure (Compliance & Standardisation): Islamic Food and Nutrition Council of America, USA

GIES second-day session will discuss Islamic Finance and Shari ah compliant banking services and will host a number of CEOs working in sector.

The session will be followed by Ethical Finance and Innovation Challenge Awards ceremony. It will discuss a number of issues, including Halal foods, life-styles and family travel. In addition, the sessions will highlight the asset management sector and Islamic investments, as well as available business and innovation opportunities in the various sectors of the Islamic economy.

The GIES, a part of Dubai Capital of the Islamic Economy Initiative, acts as an ideal platform that shares knowledge and opinions on how develop all components of the Islamic economy.

Mohammed bin Rashid receives CEO of Thomson Reuters

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, today received James C. Smith, CEO, President and Director, Thomson Reuters, at Madinat Jumeirah, in Dubai.

During the meeting, Sheikh Mohammed welcomed Smith and the delegation accompanying him, and their cooperation with the Dubai Chamber of Commerce in organising the Global Islamic Economic Summit in coordination with the Initiative of Dubai as a capital of Islamic economy.

He added that the event drew over 3,000 businesspersons, decision-makers, experts and specialists in the field of Islamic economics, praising the report issued recently by the "Thomson Reuters", which highlighted the Global Islamic Economy as a basic sector affected by Islamic values.

For his part, the President and Director of Thomson Reuters praised the vision of Sheikh Mohammed for Dubai to be the economic capital of the Islamic world with population of 1.6 billion, citing the merits of Dubai, especially its strategic location.

Smith added that Dubai has become today an example and a role model for emerging economies at the global level.

The meeting was attended Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, Sheikh Majed bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Mohammed bin Abdullah Al Gargawi, Minister for Cabinet Affairs, Chairman of Executive office of the Ruler of Dubai and Chairman of the Supreme Committee for the Development of the Islamic Economy's sector.

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