DUBAI: Dubai, the business and financial hub of the UAE, has approved a 57.1 billion dirham ($15.55 billion) budget for 2021, when the economy is expected to recover from a contraction this year, its ruler said on Sunday.
The statement did not give a comparison to actual spending in 2020, but was slightly higher than a revised spending figure of nearly 56.16 billion dirhams quoted in Dubai's sukuk prospectus seen by Reuters in August.
However, the size of the 2021 budget is 14 percent below the 66.4 billion dirhams the government had initially planned for 2020.
Dubai government officials were not immediately available to comment.
This year's budget had factored in economic dividends from the Expo 2020 world fair, a six-month event originally slated to begin in October but postponed for a year due to the COVID-19 pandemic.
The 2021 budget, which was approved by Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum, takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the pandemic on the global economy, the statement on Sheikh Mohammed's website said.
Dubai, with its diversified trade and tourism economy, was hit hard by a lockdown and suspension of flights earlier this year. The economy is expected to contract 6.2 percent in 2020 before growing 4 percent in 2021, supported by the continued recovery of economic activities, it said.
The statement said Dubai is expected to achieve public revenues of 52.314 billion dirhams, despite economic incentive measures adopted by the government to reduce some fees and freeze fee increases. That is 18.3 percent above revised 2020 revenue expectations of 44.2 billion dirhams in the sukuk prospectus.
Non-tax revenues, which come from state fees on various services, account for 59 percent of the total expected revenues, while tax revenues account for 31 percent .
This means Dubai is expected to post a deficit of 4.786 billion dirhams in 2021, lower than revised 2020 deficit estimates of 11.9 billion dirhams in the sukuk prospectus, but wider than the 2.4 billion dirhams originally budgeted for 2020.
The public revenue forecast is based on ongoing operations in the emirate and does not rely on oil revenues, which account for 4 percent of the total projected revenues for the fiscal year 2021.
Dubai ruler approves $15.5bn budget for 2021 as economic recovery seen
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Dubai ruler approves $15.5bn budget for 2021 as economic recovery seen
- The size of the 2021 budget is 14 percent below the 66.4 billion dirhams the government had initially planned for 2020
Closing Bell: Saudi main index rises to close at 10,912
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 93.86 points, or 0.87 percent, to close at 10,912.18.
The total trading turnover of the benchmark index stood at SR3.03 billion ($809 million), with 230 stocks advancing and 29 declining.
The Kingdom’s parallel market Nomu also gained 29.13 points, or 0.12 percent, to close at 23,442.91, as 43 stocks advanced and 25 retreated.
The MSCI Tadawul Index added 9.48 points, or 0.65 percent, to end the session at 1,466.52.
Arabian Shield Cooperative Insurance Co. was the best-performing stock of the day, with its share price surging 8.55 percent to SR11.94.
Other top performers included CHUBB Arabia Cooperative Insurance Co., which rose 6.33 percent to SR23.50, and BAAN Holding Group Co., whose shares climbed 6.06 percent to SR2.10.
United International Holding Co. recorded the steepest decline, falling 2.34 percent to SR146.20.
SEDCO Capital REIT Fund also saw its share price drop 2.17 percent to SR6.77, while Saudi Manpower Solutions Co. declined 1.58 percent to SR5.60.
On the corporate front, Saudi Electricity Co. announced the completion of a US dollar-denominated senior unsecured sukuk issuance under its international sukuk program, offered to eligible investors in Saudi Arabia and globally.
According to a Tadawul statement, the company completed the issuance of a three-tranche sukuk with maturities of three, six and 10 years, raising an aggregate $2.4 billion. The sukuk will be listed on the London Stock Exchange’s International Securities Market.
Saudi Electricity Co. closed the session at SR14.09, down 0.57 percent.
Najran Cement Co. said it has secured a mid-term, Shariah-compliant loan of SR50 million from Saudi National Bank to support subsidiary expansion. A bourse filing said the financing will be repaid over five years in semi-annual instalments, with a six-month grace period.
Najran Cement Co. ended the session at SR6.59, up 0.92 percent.
Almarai Co. announced its consolidated financial results for the year ended Dec. 31, 2025, reporting a net profit of SR2.45 billion, up 6.2 percent year on year.
According to a Tadawul statement, the increase was driven by higher revenue growth, disciplined cost control, an improved revenue mix and lower funding costs.
Almarai Co. closed at SR43.60, up 0.97 percent.
