Finance & Capital Market

Sharjah 2026 budget sees $12.12bn spending

SHARJAH
Sharjah 2026 budget sees $12.12bn spending
Image: Asifgraphy/ Shutterstock

The 2026 general budget for the UAE emirate of Sharjah, which proposes a total expenditure of AED44.5 billion ($12.12 billion), has been approved by His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah.

The budget is designed to foster financial sustainability, enhance cultural, scientific, and economic prosperity, and promote social welfare for all residents of the emirate, said a WAM news agency report.

Expenditures in the general budget have increased by 3% compared with the 2025 budget. The government has maintained its commitment to supporting the capital projects budget, which accounts for 35% of the overall budget, thereby ensuring the continued fulfilment of spending needs associated with these projects in 2026. Salaries and wages represent 30% of the 2026 general budget, while operating expenses account for 25%.

Furthermore, subsidies and aid account for approximately 12% of the total budget, and loan repayments and interest comprise 15% of the general budget for 2026, reflecting a 1% decrease from 2025. This framework bolsters the government's financial stability and capacity to meet its obligations. Capital expenditures are projected to account for approximately 2% of the total general budget for 2026.

Overall, the 2026 general budget is designed to support the government’s strategic and operational objectives and initiatives by reinforcing financial stability and sustainability. It aims to improve the efficiency of government spending control, address the needs of governmental agencies, and enhance their capability to meet developmental requirements while advancing the rationalisation of governmental expenditure.

The infrastructure sector occupies the top position, accounting for 35% of the total budget. This allocation underscores the government's exceptional commitment to enhancing the emirate's infrastructure, which is a fundamental pillar of development, sustainability, and attracting both foreign and domestic investment across all essential sectors.

Following this, the economic development sector ranks second in relative significance, accounting for approximately 30% of the 2026 general budget. This allocation represents a 17% increase from the previous year's budget. The social development sector ranks third, accounting for approximately 23% of the total general budget for 2026, up 6% from the 2025 budget. These figures reflect the government's focus on both economic and social dimensions in the 2026 general budget. Additionally, the government administration, security, and safety sector constitutes about 12% of the total general budget for 2026, reflecting a 16% increase from the 2025 budget. This enhancement underscores the government's emphasis on strengthening security and the administrative and technical capabilities of its institutions.

Regarding revenues, the government has focused exceptionally on expanding these revenues, improving collection efficiency, and developing smart, technological tools and methods to support this approach. 

The budget sees a 26% increase in public revenues relative to 2025. Operating revenues account for 69% of the total revenue budget for 2026, up 16% from 2025, while capital revenues accounted for 10% of the budget, up 35% from 2025.

Tax revenues accounted for approximately 16% of total public revenues in 2026, up 101% from the 2025 tax revenue budget. Similarly, customs revenues accounted for 3% of the total public revenue budget in 2026, while oil and gas revenues accounted for approximately 2% of the total revenue budget for 2026.

The budget emphasises the importance of ensuring security and social safety, alongside the sustainability of energy, water, and food resources, it said.

Additionally, the budget aims to bolster government entities' capacity to finance strategic initiatives and projects. It seeks to provide appropriate housing solutions for diverse categories of citizens throughout Sharjah and to develop a tourism infrastructure that enhances cultural, recreational, and social tourism. As a result, this sector will significantly contribute to the realisation of sustainable economic development.

The 2026 general budget is structured around several strategic and financial pillars, including efforts to cultivate and strengthen a premier environment across the social, cultural, health, tourism, and infrastructure sectors. The objective is to achieve indicators aligned with those of developed nations, ensuring that all residents of the emirate can benefit from the advantages of economic prosperity.

The budget encompasses two primary objectives: financial sustainability and economic competitiveness. Additionally, it focuses on addressing social needs, meeting employment-related needs, and strengthening the government’s capacity to develop and enhance the emirate's infrastructure. The implementation of capital projects and initiatives will continue across the various cities and regions of the emirate, which are experiencing an urban renaissance characterised by social, tourism, and cultural advancements.

Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Finance Department, stated that the general budget of the emirate has established a framework of strategic and financial goals and priorities, reflective of the prudent directives of His Highness the Ruler of Sharjah, as well as the overarching vision of the Executive Council and the strategic objectives of the Finance Department. These initiatives aim to achieve the highest levels of financial sustainability and efficiency in managing government financial resources, thereby enhancing the Emirate’s competitiveness across economic, social, infrastructure, cultural, and tourism sectors. Furthermore, they seek to bolster the financial resources of government entities to deliver services that meet global standards and align with the performance indicators outlined in the Government of Sharjah’s budget.


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