UAE cabinet approves Dhs58bn budget for 2021

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved a Dhs58.113bn federal budget for 2021.

He approved the budget during a meeting of the cabinet on Sunday, November 1, and took to Twitter to confirm that development projects would continue to be a top priority.

The UAE’s federal budget for 2020 stood at Dhs61.35bn, its highest ever. Therefore, the budget for 2021 is 5.2 per cent lower than the 2020 figure.

Read: UAE federal budget records Dhs9.75bn surplus in H1 2020

“Aiming to achieve the fastest economic recovery, the 2021 budget is formulated to address economic changes without compromising the national development priorities, and we look forward to more achievements in the coming year,” said Sheikh Mohammed.

Chaired by Vice President and Prime Minister of the #UAE and Ruler of #Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, the UAE Cabinet approves the federal budget of AED 58 billion for the fiscal year 2021.https://t.co/T6hwkgcSKP pic.twitter.com/G9dz9GIXaH

— Dubai Media Office (@DXBMediaOffice) November 1, 2020

A large share of the 2021 budget will be allocated to social development including social welfare, health and education, reported news agency WAM.

The cabinet also approved the decision to restructure the Emirates Youth Council headed by Minister of State for Youth, Shamma bint Suhail bin Faris Al Mazrouei. The council is also entrusted with new responsibilities to accelerate youth empowerment across all sectors.

The cabinet further approved the final account of the Emirates Real Estate Corporation (EREC) for the fiscal year 2019, where the EREC achieved an overall growth in revenues by 23 per cent over the previous year.

A total of seven international agreements were also ratified by the cabinet during the meeting on Sunday including that between the UAE and Israel regarding visa-free entry agreement for citizens of both countries.

Read: UAE, Israel agree on bilateral visa-free travel

Two other agreements included those between the UAE and the Republic of Sierra Leone on the mutual protection of investments, the avoidance of double taxation and the prevention of tax evasion imposed on income and capital.

Another two agreements were those with Burkina Faso and the Republic of Ghana regarding the avoidance of double taxation and the prevention of tax evasion imposed on income.

The remaining two agreements which were ratified included those signed with Guatemala and Rwanda regarding air transport services.