Sharjah approves $12.2bn budget for 2026 with 3% increase

The government of Sharjah has worked to diversify budget funding sources to ensure financial sustainability of projects and initiatives across economic, social, tourism, scientific, and infrastructure sectors

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Sharjah's Ruler has approved a AED44.5 billion budget for 2026, a 3% increase from 2025. The budget allocates funds to infrastructure, economic and social development, and government administration. It aims to enhance financial sustainability and improve macroeconomic indicators.

Key points

  • Sharjah's Ruler approved a AED44.5 billion budget for 2026, a 3% increase from 2025.
  • Infrastructure receives 35% of funds, economic growth gets 30%, up 17% from last year.
  • The budget aims to boost tourism, create jobs and mitigate economic challenges in Sharjah.

The Ruler of Sharjah has approved a general budget of AED44.5 billion for the emirate, marking a 3 per cent increase from 2025.

Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, signed off on the budget, which allocates funds across infrastructure, economic development, social development, and government administration.

Infrastructure receives the largest allocation at 35 per cent of the total budget. Economic development accounts for 30 per cent, representing a 17 per cent increase from the previous year. Social development comprises 23 per cent, up 6 per cent from 2025. Government administration, security, and safety make up 12 per cent, reflecting a 16 per cent increase from 2025.

Public revenues increase 26% in Sharjah’s 2026 budget

Capital projects represent 35 per cent of the budget. Salaries and wages account for 30 per cent, while operating expenses comprise 25 per cent. Subsidies and aid make up 12 per cent of the total. Loan repayments and interest represent 15 per cent, down 1 per cent from 2025. Capital expenditures account for 2 per cent.

Public revenues increased by 26 per cent compared with 2025. Operating revenues make up 69 per cent of total revenue, up 16 per cent from 2025. Capital revenues account for 10 per cent, up 35 per cent from the previous year.

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Tax revenues comprise 16 per cent of total public revenues in 2026, representing a 101 per cent increase from the 2025 tax revenue budget. Customs revenues account for 3 per cent of the total public revenue budget. Oil and gas revenues make up 2 per cent.

“The 2026 general budget adopts a three-dimensional approach. The first dimension focuses on developing economic and social objectives and strategies to enhance the well-being and prosperity of the emirate’s residents. The second dimension is strategic in nature, emphasising the enhancement of the government’s financial sustainability and its capacity to fund strategic and operational activities, initiatives, and projects. The third dimension pertains to the refinement of the government services system and the improvement of macroeconomic indicators, incorporating strategic priorities to stimulate the emirate’s economy through the provision of discounts and a review of various service fees, thereby reducing the cost of doing business for customers and investors,” Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Finance Department said in a statement.

The budget aims to provide housing solutions for citizens throughout Sharjah and develop tourism infrastructure across cultural, recreational, and social sectors. The government has implemented a digital transformation initiative covering financial services, including electronic payment and collection systems.

Sheikh Mohammed bin Saud Al Qasimi added that the budget strengthens the emirate’s objectives in infrastructure development, environmental protection, and public health. He noted that projects supervised by the Ruler of Sharjah have generated value for the emirate as a centre for tourism, science, and culture.

The budget prioritises employment opportunities in both public and private sectors, with focus on developing skills and competencies for citizens seeking work. The government aims to mitigate effects of challenges including inflation, rising interest rates, economic recession, and geopolitical crises.

The budget has been formulated according to a vision aligned with the government’s financial plan for 2023 to 2030. The focus remains on controlling and rationalising expenditures in areas that do not enhance competitiveness or financial sustainability.

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The government of Sharjah has worked to diversify budget funding sources to ensure financial sustainability of projects and initiatives across economic, social, tourism, scientific, and infrastructure sectors.

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