2011 budget to enhance Dubai's economic growth

Dubai: Dubai's annual budget for 2011 reflects the Government's commitment to speeding up social and economic development to reinforce Dubai's position as the most sought-after business hub, senior government officials told Gulf News yesterday.

Sami Dhaen Al Qamzi, director general of the Department of Economic Development, said: "In addition to stimulating economic growth and financial stability in Dubai, the budget also emphasises social development through expenditure on health and education.

"The integrated approach to strengthen socio-economic development will contribute to positioning Dubai as a preferred investment destination for businesses," he said.

On Wednesday His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved Dubai's annual budget for 2011 with a Dh3.77 billion deficit. Public revenues are estimated at Dh29.9 billion while public expenditures are expected to reach Dh33.68 billion, leaving a deficit of Dh3.77 billion.

Competitiveness

Al Qamzi added: "The Dubai Government budget for 2011 underscores the vision of Shaikh Mohammad to further enhance the competitiveness of the Dubai economy through focused investments in infrastructure and social development."

In the budget, 43 per cent of expenditure is allocated to the economy which includes roads, transport, airports and civil aviation as well as tourism.

Moreover, social development including health and education services was allocated 24 per cent of expenditure.

"With some 43 per cent of the total expenditure earmarked for infrastructure, aviation and tourism, the budget will further energise the economy by creating new jobs and driving the growth of diversified industries," he said.

Dubai Police Chief Lt General Dahi Khalfan Tamim said: "Since 22 per cent of the budget expenditure has been allocated to safety, security and justice sectors, we are going to achieve a lot of the security projects.

"The budget allocated for Dubai Police is well monitored and we are very careful and calculated in our expenses as we are following the policy of watching our expenditure."

Forensic lab

Dubai Police is expected to establish a forensic lab and to open a new police station in Al Barsha by the end of this year.

Hussain Nasser Lootah, director-general of Dubai Municipality, told Gulf News that although Dubai has solid infrastructure the government is insisting on allocating significant funds to continue its development to stimulate the economy and investment.

According to the new budget, 23 per cent of the public expenditure — or Dh7.5 billion — has been allocated to developing and completing pre-approved infrastructure projects that promote economic growth and stimulate the flow of local and foreign investment.

While Lootah expects a good part of the expenditure to improve infrastructure to go to the municipality, he said: "Dubai Municipality is a service institution concerned about infrastructure projects in the city such as sewage and water networks and plants and the public hygiene programme as well as parks.

"In the most difficult financial and economic situation in Dubai, the municipality could complete a lot of infrastructure projects and the Olympic pool was one of these," he said.

Public revenues

Moreover, he pointed out: "The announced budget is just an estimation and the expected deficit is not that big and it is a book deficit. It could be covered easily from public revenues."

The budget was very good and went hand in hand with the vision of all government departments and organisations, Lootah added.