Dubai’s government is expecting to run a balanced budget in 2015, even as it increases spending by 9% compared with a year earlier, an official statement said.
The no-deficit budget would be Dubai’s first in the six years since the global financial crisis. It reflects strong local economic growth coupled with a boost in expected revenues from taxes and real-estate transaction fees, according to a statement on Saturday carried by the official WAM news agency.
A semiautonomous member of the United Arab Emirates, Dubai’s rise in fortunes comes as the Persian Gulf business hub enjoys an economic resurgence. Real-estate prices have registered double-digit rises in the past two years after plummeting in the aftermath of the crisis in 2009, although the pace of growth has slowed in recent quarters.
Trade and tourism have also provided a lift for Dubai, which unlike its neighbors doesn’t have large oil and gas reserves. The local economy was on track to grow by more than 5% in 2014, according to a forecast by the Institute of International Finance last year. >> Read More