Sharjah sets Dh44.5 billion budget for 2026 with focus on jobs and growth

Dubai: Sharjah has approved a Dh44.5 billion general budget for 2026, setting out a measured but expansive spending plan that prioritises infrastructure, economic competitiveness and social stability, while responding to a more uncertain global backdrop of inflation, higher interest rates and geopolitical strain.

Approved by His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, the budget reflects a 3% increase on 2025 and is designed to balance financial sustainability with long-term development goals. The framework aims to protect public finances while continuing to invest in sectors that support growth, employment and quality of life.

Infrastructure and development take the lead

Infrastructure remains the largest single area of spending, accounting for 35% of the total budget. The allocation underlines Sharjah’s continued focus on transport networks, utilities, housing, and public facilities, which policymakers view as the backbone for attracting investment and supporting population growth.

Economic development ranks second, accounting for around 30% of total spending, up 17% from the previous year. The surge signals an effort to strengthen the emirate’s competitiveness, support business activity and expand tourism across cultural, heritage, scientific and recreational segments.

Social development follows at 23%, up 6% from 2025, reflecting Sharjah’s emphasis on healthcare, education and community services. Spending on government administration, security and safety accounts for about 12%, up 16%, as authorities look to reinforce institutional capacity and public safety.

Capital projects and operating costs

Capital projects remain a central pillar of the budget, accounting for 35% of total expenditure. Salaries and wages make up 30%, operating expenses 25%, subsidies and aid around 12%, and loan repayments and interest 15%, down one percentage point from last year. Capital expenditures themselves account for roughly 2% of the overall budget.

The composition is intended to preserve fiscal discipline while ensuring the government can continue delivering services and advancing strategic projects across Sharjah’s cities and regions.

Revenue growth and diversification

Total public revenues in the 2026 budget are expected to rise 26% year on year. Operating revenues account for 69% of total, up 16%, while capital revenues account for 10%, up 35% from 2025.

Tax revenues are forecast to make up 16% of total public revenues, more than doubling from last year, while customs revenues are forecast to contribute 3%. Oil and gas revenues remain a small component at about 2%, highlighting Sharjah’s push to broaden its revenue base.

Authorities have highlighted improved collection efficiency and the use of smart digital tools as key drivers behind the revenue expansion.

Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Finance Department, said the 2026 budget reflects the Ruler’s directives and the Executive Council’s vision to strengthen financial sustainability and efficiency across government.

“The general budget of the Emirate has established a framework of strategic and financial goals and priorities,” he said, adding that the aim is to enhance Sharjah’s competitiveness across economic, social, infrastructure, cultural and tourism sectors.

He said the budget adopts a three-dimensional approach, focusing on economic and social development, strengthening the government’s capacity to fund strategic initiatives, and improving government services and macroeconomic indicators. Part of this includes reviewing service fees and offering discounts to reduce the cost of doing business for companies and investors.

Digital transformation is another core theme. The government is expanding electronic payment and collection systems and re-engineering processes to reduce bureaucracy, with officials saying this will improve service quality and align Sharjah with global best practices.

Jobs, housing and tourism

Beyond fiscal metrics, the budget places a strong emphasis on employment, skills development and housing. Funding has been earmarked to support job creation in both the public and private sectors, alongside programmes to equip citizens with skills for the labour market and entrepreneurship.

Housing solutions for different categories of citizens remain a priority, while tourism investment is expected to deepen Sharjah’s appeal as a cultural and recreational destination, supporting sustainable economic development.