Dubai: The Dubai government's 2009 budget which boosted the fiscal outlay by 42 per cent to Dh37.7 billion was widely welcomed by Dubai's business community on Sunday.
A cross-section of businessmen, bankers, economists and senior bureaucrats hailed the budget as growth oriented and said the government's emphasis on infrastructure spending will go a long way in resisting the impact of the global slowdown on Dubai's economy.
The budget estimates a 26 per cent increase in government revenue from Dh26.5 billion last year to Dh33.5 billion this year has avoided any new taxes or fees.
The business community in general believes that the Dubai government's fiscal strategy will be successful in preparing local businesses to meet short-term challenges from the current global economic environment.
Strong step to restoring confidence
If we look at the budget for 2008, we see it was well-managed and showed an increase in government revenues of 30 per cent and most revenues came from government investments in the emirate and abroad.
The majority of this budget (2009) will go to the liquidity of the market, services and for infrastructure. There will be a decline in growth but the government is taking action to inject money into the market to keep the confidence there.
The budget is significant not only for Dubai but for the UAE because the economy of Dubai is a huge part of the whole country.
Abdullah Al Saleh
Director General, Ministry of Foreign Trade
Investment in infrastructure must go on
I think the deficit is insignificant in comparison to the GDP itself. During recessionary times, governments resort to deficit spending on infrastructure projects. I think it's the right thing to do.
I think investment in infrastructure has increased over 30 per cent and this is a real boost to the economy. My opinion is that there should be more investment in infrastructure and the investment must go ahead without pause.
Abed Junaid
Executive Director, ETA Star Property Developers
Reflection of forward thinking
Our view is that it is a reflection of the forward-thinking of our Ruler and the Executive Council of Dubai. We've said all along that it is a crisis of sentiment, not a financial or economic one.
The governments's commitment to focus on building the infrastructure projects is going to be a very positive boost and shows, to whoever is concerned about the future of Dubai, that Dubai continues its vision of becoming one of the best cities in the world.
Mohammad Bin Braik
Group CEO, Dubai Properties
Strong message for private investors
The decision by Dubai Government to increase public sector spending by 42 per cent to Dh37.7 billion in 2009 underlines Dubai's chosen path to sustain economic development. The government's determination also indicates its commitment to ensuring adequate infrastructure is ready when major projects are completed.
The growth in government spending is also a clear message to all the investors in the private sector to demonstrate confidence in the economic fundamentals of the emirate of Dubai.
Hesham Al Qasim
CEO of Dubai Real Estate Corporation (DREC) and Wasl, the asset management group owned by DREC
Announcements will curb speculation
The Dubai budget of 2009 comes at a time when the entire world is reeling from a recessionary phase. It is indeed very positive to note that infrastructure spending has received a further boost.
This year's budget announcement seems to mark the beginning of an era of better transparency with the budget announcements being more detailed this year.
Transparency in government spending and revenues is highly important for the economic maturity of the country. Transparency is also very critical to ensure that speculation activity is under manageable levels in the economy.
Raju Menon
Managing Partner, Morison Menon Chartered Accountants
Future full of opportunities
It shows Dubai's commitment to the great vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The future is full of opportunities and the infrastructure projects will keep the momentum going and through the good management of resources and the good governance system, we will achieve the best .
Marwan Bin Galita
CEO, Rera
Providing fiscal stimulus to the economy
This increase provides a fiscal stimulus at a time when the outlook for the global economy is less than positive with global growth forecast less than two per cent in 2009.
Having budgeted for this, the Dubai government is again demonstrating its ability to be pre-emptive. Whilst this is the first time ever that the government has run a budget deficit, it is less than 10 per cent of GDP.
This is a very healthy ratio in absolute terms and relative to other countries across the globe. The deficit is an investment by the government in enhancing the productive capacity of Dubai.
Sami Al Qamzi
Director General, Department of Economic Development
Shining example of transparency
The most important thing coming out of this announcement is the transparency of the Dubai Government. We are talking very openly about what we plan to do and how much we plan to spend.
Dubai is sending a very strong signal to the market. There might be some deficit in the overall budget but this is the reality of the market.
The commitment of Dubai Government is very clear. Even revenues will witness growth, which is a positive signal that though the market is being affected by what is going on around the world, we still expect local growth to continue.
Hamad Bu Amim
Director-General of Dubai Chamber of Commerce
Evidence of visionary leadership
This is yet another evidence of the vision of leadership. At different times, we viewed this region to be able to manage in good times. Now, in difficult times, the true colours of leadership show.
With this decision, there are indications that leadership here, represented by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, is taking the measures which will induce investor confidence, consumer confidence and shown that these are just temporary times and things will pick up.
Nawfal Al Jourani
Chief Marketing Officer, Dubai Maritime City
Dubai set to meet global challenges
A look at Dubai Budget 2009 shows that Dubai is all set and ready to face the global challenges. It reaffirms the strong commitment, trust, strength and resilience of the Dubai Government and the economy.
This is the first time that the budget is announced in a press conference, the rent cap awaiting approval, the unified freehold visa, part-time work system, ICD and Dubai World representations, restructuring of government departments, postponing VAT to 2012 will all help Dubai survive the current challenges.
Sudhir Kumar
Partner & Head-Corporate Communications and
Public Relations, Morison Menon Chartered
Accountants
Indicator of financial stability
Dubai's annual budget for 2009 indicates the emirate's financial stability and sends out a strong message to investors and businesses operating in the region.
The increase in spending also reflects the government's transparency and confidence in the changed global environment.
Damac believes in the long-term vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai. The budget will provide the needed boost and support to the businesses in the region to weather the challenges posed by the global economic meltdown.
Hussain Sajwani
Chairman of Damac Holding
