Sharjah Update Sharjah business & Investment News from Invest in Sharjah (Sharjah FDI Office)
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His Highness Sheikh Dr. Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, approved Sharjah’s general budget for 2024, with total expenditures amounting to approximately AED40.832 billion, the largest in the emirate’s history, a budget that would achieve financial sustainability, ensure decent living, and ensure social security and sustainability.
Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah, and Chairman of the Sharjah Executive Council, stressed that the new budget would empower government departments, allowing them to achieve their goals, facilitating the implementation of various infrastructure and science projects, boosting business and tourism, and achieving food security.
Sheikh Mohammed bin Saud Al Qasimi, Head of Sharjah Finance Department, pointed out that the budget adopted many strategic and financial goals and priorities to achieve the highest levels of financial sustainability, efficiently manage government financial resources, enhance the emirate’s competitiveness in various economic, social and infrastructure fields, and support the government bodies’ financial resources, to provide government services according to global standards.
The budget will strengthen strategic partnerships with the private sector and provide incentive packages that ensure that they continue to advance the emirate’s growth and development, according to Sheikh Mohammed bin Saud.
He explained that the budget has two dimensions: economic and social development, and the other is strategic, which covers the government’s financial sustainability development. It has adopted strategic priorities to bolster the emirate’s economy by granting discounts and reconsidering service fees. The budget also focused on providing many developmental and social requirements to ensure achieving economic growth rates that contribute to enhancing Sharjah’s position as a regional and global economic hub, attracting local and international investors.
Sheikh Mohammed added that the budget enhances Sharjah’s strategic plan for developing infrastructure, promoting environment preservation and public health, expanding tourism projects, and investing in human resources and employment management.
The budget witnessed an increase in expenditures by 16% compared to 2023. It supports capital projects by 20%. 26% the general budget goes for wages. The operating expenses reached 25% for 2024, an increase of 6% compared to 2023. 12% of the budget will go for support and aid purposes. The capital expenditure budget percentage is 2%, while 15% of the budget goes to repay loans and interest, 36% more compared to 2023.
Budget disaggregating based on economic sectors reflects the government’s strategic vision. The infrastructure sector ranked first among the general budget sectors, with a percentage of 40%, an increase of 26% from 2023. The economic development sector comes in second, constituting about 30%, a rise of 8% over 2023. The social development sector came in third place, with 21%, a 5% increase compared to 2023. The government administration, security, and safety sector, constitutes about 9%, a 41% increase over 2023’s budget.
The Sharjah government has set a general revenue plan in the 2024 budget, representing an increase of 5% compared to 2023, and operating revenues will achieve 71% of the total revenue budget for 2024, an increase of 8% over 2023. The capital revenues will reach 11%, the tax revenues will be 9%, customs revenues will constitute 4%, and oil and gas revenues will constitute 5%.
In light of the government’s financial plan for 2023-2030, the budget worked to control and rationalise spending in areas that may not add value to the economic sustainability index, intending to stimulate the efficiency of government spending management, and enhance the capabilities of government agencies to finance programmes and plans. Therefore, the 2024 budget has increased by 16%.
