Dubai Municipality, responsible for Dubai's infrastructure development and maintenance, is set to become financially independent by next year, said a senior official.
This could make Dubai Municipality the first financially self-sufficent civic body in the region.
"Up to now, we have achieved 71 per cent self-sufficency in managing our finances," Rashad M. Bukhash, director of Dubai Municipality's General Projects Department, told Gulf News yesterday.
"We currently earn Dh1.6 billion in revenue, about 71 per cent of our annual budget which is more than Dh2 billion. By the end of the next year, we plan to increase our revenues to match the expenditure. By early 2007, we expect our earnings to be higher than expenditure. From then onwards, we will not need government funding for development."
Approximately 90 per cent of Dubai Municipality's budget is allocated to infrastructure development.
Its five-year investment outlook involves projects worth Dh23.47 billion and includes Dh7.34 billion spending for roads and bridges, Dh12.47 billion for the rail project, Dh1.1 billion for drainage and irrigation projects and Dh2.56 billion for public projects.
"This year, we are spending Dh450 million in general projects," he said. "The value of the ongoing projects under the General Projects Department would be around Dh5 billion over the next five years."
Bukash said the municipality will seek a number of new sources to increase its revenue stream. "We will not become a commercial organisation, however, we might add a number of new services to expand the revenue base," he said. "Some of these will be in the form of land lease and through additional services."
Dubai government has invested heavily through its civic body over the last four decades to create a world-class infrastructure which has helped the emirate to attract billions of dollars in foreign direct investment.
Oil represents less than 7 per cent of Dubai's Dh97.98 billion GDP, and is expected to run dry in less than a decade.
The emirate has successfully diversified its economy over the last four decades, which will help it to continuously grow even in the absence of oil income.
Saifur Rahman
© Gulf News 2005
