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Wed 21 Dec 2016 03:01 PM

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Dubai's ruler approves 2017 budget with $680m deficit

Budget plan expects to create 3,500 new jobs, with infrastructure spending set to jump 27%

Dubai's ruler approves 2017 budget with $680m deficit
Sheikh Mohammed Bin Rashid Al Maktoum, UAE’s Vice President and Prime Minister, and Ruler of Dubai.

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Wednesday approved the 2017 budget for the emirate which will see a deficit of AED2.5 billion ($680 million).

Sheikh Mohammed, also Vice President and Prime Minister of the UAE, endorse Dubai's Department Of Finance budget which has total expenditure of AED47.3 billion, up from AED46.1 billion for 2016.

The deficit represents 0.6 percent of total gross domestic product (GDP), according to a series of tweets from Dubai Media Office.

According to the 2017's budget, oil revenue is expected to represent 6 percent of the total revenues while 3,500 new jobs are expected to be created.

The 2017 budget will see spending on infrastructure next year rise by 27 percent as the emirate continues to launch development projects ahead of its hosting of the World Expo in 2020.

Despite the overall budget deficit, the government expects to run an operating surplus - excluding items such as loan repayments and capital receipts - of AED2.9 billion next year.