UAE

Sharjah Ruler approves AED44.5bn 2026 budget

His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has formally approved the general budget for the emirate, which encompasses total expenditures of approximately AED44.5 billion.

This budget is designed to foster financial sustainability, enhance cultural, scientific, and economic prosperity, and promote social welfare for all residents of the emirate. It also emphasises the importance of ensuring security and social safety, alongside the sustainability of energy, water, and food resources.

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 general budget for 2026 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.

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 fulfillment 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.

Classifying the budget by economic sector is a critical tool for reflecting the government’s strategic priorities. In the 2026 general budget, 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 government revenues, the government has focused exceptionally on expanding these revenues, improving collection efficiency, and developing smart, technological tools and methods to support this approach. Analysis of public revenue trends shows that, overall, public revenues in the 2026 budget increased by 26% relative to 2025. Operating revenues accounted 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.

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.

Additionally, Sheikh Mohammed bin Saud noted that the 2026 general budget includes several measures to ensure the government’s financial sustainability. The government has also embraced a comprehensive strategy, in collaboration with relevant entities within the emirate, to develop a digital transformation initiative that encompasses various financial services, including electronic payment and collection systems. This endeavour has led to the provision of superior competitive services to customers while bolstering the role of the Sharjah Digital Department in adopting best global practices related to the development of the Sharjah government’s digital transformation strategy, thereby enhancing its competitiveness both locally and internationally. Moreover, it has empowered governmental entities to re-engineer processes and streamline procedures, ultimately facilitating a significant reduction in bureaucratic inefficiencies within the government financial system of the emirate.

The Chairman of the Finance Department outlined the key dimensions of the 2026 budget, stating, “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.”

Furthermore, the budget prioritises the provision of numerous developmental and social requisites to ensure the achievement of economic growth rates that will bolster Sharjah’s standing on both the regional and global economic stages. It aims to secure financial stability and enhance the emirate’s competitiveness by offering high-quality financial and strategic services, while fostering an attractive environment for both local and international investors. Additionally, it seeks to cultivate a tourism landscape across various sectors, including cultural, heritage, medical, scientific, and recreational tourism. The framework will ensure that all data, indicators, and results align with international financial standards, particularly concerning inflation rates, sectoral expenditures, and other macroeconomic indicators, while also reinforcing the policies designed to control and rationalise government spending,” remarked Sheikh Mohammed bin Saud.

Sheikh Mohammed bin Saud Al Qasimi emphasised that the budget strengthens the emirate’s strategic objectives in enhancing infrastructure across vital facilities and sectors, safeguarding the environment and public health, and expanding tourism’s role through various projects supervised by His Highness the Ruler of Sharjah. These initiatives have generated and are expected to continue generating significant value for the emirate as a dynamic center for tourism, science, and culture. The budget also establishes a robust investment climate, fosters investment in human resources, and increases employment opportunities, aligning with one of His Highness’s strategic priorities.

Moreover, it prioritises the provision of financial support to government entities, ensuring that all essential funding requirements are met to enhance their capacity in executing strategic and operational initiatives and projects. The budget ensures the delivery of high-quality services to citizens and residents, adhering to the highest standards and practices that promote well-being and happiness within the community. Sharjah has achieved a prominent status on the global cultural, scientific, and tourism landscape, a testament to His Highness the Ruler of Sharjah’s strategic vision and leadership in the continuous development process, positioning Sharjah as a global capital of cultural and civilizational creativity, among other accomplishments that evoke collective pride.

The 2026 budget aims to enhance government capabilities and enablers in response to global and regional challenges, including inflation, rising interest rates, economic recession, and geopolitical crises affecting nations worldwide. The government of Sharjah is strategically leveraging its financial, economic, and strategic resources to mitigate the adverse effects of these challenges on the Emirate’s financial and economic conditions while safeguarding the interests of its citizens, residents, and businesses operating in the region.

The general budget encompasses a range of strategic goals, priorities, and indicators across economic, social, scientific, cultural, civilizational, tourism, and structural dimensions. The primary focus remains on the citizen, aligning with the directives of His Highness the Ruler of Sharjah, who emphasises the importance of ensuring a dignified living standard for the residents of the emirate. This will be achieved by implementing diverse projects and initiatives across multiple sectors, fostering economic and social stability, security, and safety.

The budget is designed to achieve several key objectives, notably providing employment opportunities in both the public and private sectors. It prioritises the development of skills and competencies for citizens seeking employment, aiming to enhance their integration into the workforce with distinguished entrepreneurial skills. This initiative aspires to contribute significantly to establishing the Emirate of Sharjah as a prominent platform for scientific inquiry, cultural exchange, and a distinctive tourist and economic environment, thereby strengthening its cultural, economic, and financial stature on the local, regional, and international stages.

Moreover, the budget, through its objectives and methodologies, is committed to utilising and advancing the most effective means and technologies that stimulate economic growth, development, and financial sustainability. There is also a significant emphasis on leveraging the human resources and potential of citizens, enhancing their roles in the processes of building and sustainable development, all of which the budget intends to realise during the fiscal year 2026.

The strategic direction of the government for the coming years prioritizes the enhancement of results achieved, which have enabled the Emirate of Sharjah to transition from a local and regional presence to a global and pioneering hub in various domains. These domains include scientific, cultural, heritage, social, and environmental sectors, with Sharjah achieving notable rankings in global assessments regarding cleanliness, safety, and tourism, as well as being increasingly favoured as a residence by diverse nationalities.

The budget has been formulated in accordance with a comprehensive strategic vision aligned with the government’s financial plan for 2023 to 2030. The primary focus of the budget is on the control and rationalisation of expenditures in areas that do not significantly enhance competitiveness or financial sustainability. The objective is to improve the efficiency of government spending management by entities within the emirate and to bolster their capacity to finance strategic programs, activities, and plans. As a result, the 2026 budget reflects a 3% increase over the 2025 budget.

The government of Sharjah has made concerted efforts to diversify budget funding sources to ensure the financial sustainability of projects and initiatives overseen by His Highness the Ruler of Sharjah across multiple sectors, including economic, social, tourism, scientific, and infrastructure. These initiatives are executed with a high degree of professionalism and adherence to the best international standards and practices. Furthermore, a well-defined strategy has been established to incentivise government entities to enhance and develop mechanisms for controlling and rationalising government expenditures, thereby directing these funds toward areas that provide added value for the community.

WAM

UAE

When will summer end in the UAE?

The UAE’s astronomical summer will come to an end on September 23, when the autumnal equinox marks the official start of autumn, although meteorologists classify September as the first month of the autumn season, according to Ibrahim Al Jarwan, Chairman of the Emirates Astronomical Society and a member of the Arab Union for Astronomy and Space Sciences.

Al Jarwan said the country’s hottest period, known in Arabic as Al Qayz, begins to ease in the final third of August with the rising of the star Suhail, long regarded across the region as a traditional sign of gradually cooler weather.

He explained that while temperatures remain high through September, the Indian seasonal low-pressure system weakens progressively during the month.

The UAE continues to be influenced by thermal low-pressure systems extending from central Arabia, bringing active winds that can raise dust and reduce visibility.

At the same time, conditions remain favourable for the formation of convective clouds, particularly over the eastern mountains, with thunderstorms and rainfall occasionally extending into inland parts of the country.

September also sees a seasonal shift in wind patterns, with south-easterly winds prevailing overnight and during the morning before giving way to north-westerly sea breezes in the afternoon and evening.

Humidity gradually increases compared with August, particularly during the second half of the month, creating more favourable conditions for fog and mist to develop in scattered areas across the UAE.

Al Jarwan noted that astronomical summer began with the summer solstice on June 21 and lasts for three months until the autumnal equinox on September 23. During the first half of summer, temperatures typically range between 41°C and 43°Cduring the day but can exceed 50°C in some areas during heatwaves.

In the latter half of the season, from August 11 onwards, higher humidity combines with persistent heat and the seasonal Kous winds to support the formation of towering thunderclouds over the Hajar Mountains, producing the localised summer thunderstorms known as Al Rawayeh.

With much of the summer still ahead, residents are continuing to adapt their routines to the season’s intense heat by shifting outdoor activities to the early morning and evening hours, while increasingly turning to air-conditioned leisure and fitness venues during the day.

Dubai Mallathon, running from 15 June to 15 September, has become one of the city’s flagship summer initiatives, allowing residents to walk and run along designated indoor routes across participating shopping malls during the cooler morning hours. The programme is designed to encourage physical activity throughout the summer despite the high temperatures.

Beyond organised fitness events, shopping malls, indoor attractions, museums, aquariums, family entertainment centres and beaches during the cooler hours remain among the most popular destinations for residents and visitors. As temperatures gradually begin to ease towards late August, outdoor parks, mountain areas in the east of the country and desert destinations are also expected to see increasing numbers of visitors.

UAE

UAE suspends new visas for 3 countries over Ebola

The UAE has announced a series of additional precautionary measures affecting travellers arriving from three African countries as part of efforts to strengthen national preparedness against potential Ebola virus outbreaks.

The measures, jointly announced by the National Emergency Crisis and Disasters Management Authority (NCEMA) and the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), apply to arrivals from the Democratic Republic of the Congo, Uganda and South Sudan.

Authorities said the decision is part of the country’s preventive and proactive strategy to address developments related to the Ebola virus and safeguard public health.

Under the new measures, all new visas for nationals of the three countries, including visit visas, will be suspended.

Entry into the UAE will also be restricted for travellers arriving from the affected countries, including those who transit through other destinations before reaching the Emirates.

Travellers who have spent more than 21 consecutive days outside the listed countries prior to their arrival in the UAE will be exempt from the restrictions and permitted entry, according to the authorities.

The measures are scheduled to take effect at 1 p.m. on Saturday, 6 June 2026, and may be extended depending on developments in the global health situation.

Despite the restrictions, cargo operations between the UAE and the three countries will continue without interruption. Transit flights will also remain operational, ensuring the continued movement of goods and international air traffic.

The announcement comes as governments around the world continue to monitor Ebola-related developments in parts of Africa.

The disease, which causes severe viral haemorrhagic fever, has prompted heightened surveillance and preparedness measures in several countries whenever outbreaks emerge.

NCEMA and ICP said they would continue to closely monitor global health developments in coordination with local and international partners.

Authorities will assess any potential implications for other countries and implement further measures when necessary, based on approved health standards and risk assessments.

Business

Hormuz relief may take time for UAE shoppers

The impact of lower oil and shipping costs could begin to appear within a few weeks, but it may take several months for these savings to fully pass through to retail prices and consumer goods, depending on supply chains and existing contracts, industry experts said.

The reopening and stabilisation of shipping through the Strait of Hormuz is expected to ease pressure on energy and freight costs, giving UAE residents the prospect of more stable fuel prices and gradual relief on some imported goods.

Consumers, however, should not expect an immediate drop in supermarket bills or retail prices. Many businesses are still working through stock bought when shipping costs were higher, while suppliers, insurers and freight companies will want to see stability hold before fully resetting prices and operations.

Haris Shaikh, CEO of Gallop Shipping in Dubai, said the reopening of the Strait of Hormuz allows oil, gas and goods to move normally again through one of the world’s most important trade routes, reducing concerns about supply disruption and easing pressure on energy and shipping costs.

“The impact of lower oil and shipping costs could begin to appear within a few weeks. However, it may take several months for these savings to fully pass through to retail prices and consumer goods, depending on supply chains and existing contracts,” he said.

The first signs of relief are likely to be felt in fuel and shipping costs, followed by goods that depend heavily on transport and energy expenses. Food products, transportation services and travel costs could also see some benefit over time if lower oil and freight costs are sustained.

Shaikh said UAE consumers should expect greater market stability and less price volatility in the coming weeks, but not “immediate or significant reductions in all prices,” because lower costs take time to move through the wider economy.

UAE ports stand to benefit

The deal is also expected to support the UAE’s trade and logistics sector by making shipping routes in the Gulf safer and more reliable.

Hiba Alemadi, CEO and Founder of Queen Gulf Capital, said safer routes should help lower shipping costs and increase the amount of cargo moving through UAE ports, although the return to normal operations will be gradual.

“The deal is good news for the UAE because it makes shipping routes in the Gulf safer and more reliable. This should help lower shipping costs and increase the amount of cargo moving through UAE ports. However, things may not return to normal right away. Shipping companies, insurers, and businesses will want to see stability over time before fully restoring operations,” she said.

In the longer term, she said the UAE is in a strong position to benefit from higher trade volumes because of its ports and logistics network, which can support growing regional business activity.

Freight rates may not fall quickly

Freight rates have increased significantly since March as businesses dealt with regional uncertainty, higher risk costs and disruption-related charges. Even with Hormuz reopening, industry executives expect the adjustment to be slow.

Alemadi said some exceptional charges, including drop-off, internal shifting and related operational costs, could reduce gradually if the situation stabilises. A significant reduction in freight rates, however, is unlikely in the immediate future.

This significantly impacts retailers and shoppers, as higher shipping costs are already built into the prices of many goods on shelves. Importers and retailers may need several delivery cycles before lower freight costs begin to show up in consumer pricing.

“The reopening of the Strait of Hormuz is good news for UAE retailers and shoppers, but the benefits will not happen right away. Businesses need time to adjust, and many retailers are still selling products bought when shipping costs were higher. If the situation remains stable, shoppers could see more stable prices and better product availability over the next few months,” Alemadi said.

DP World prepares for higher vessel calls

DP World GCC said the de-escalation in regional tensions is an encouraging development for trade, with teams staying in contact with customers and shipping line partners as conditions evolve.

“At Jebel Ali, we have prepared extensively for the return of sea freight volumes through the Strait of Hormuz and our teams are primed and ready to manage the increase in vessel calls once shipping schedules begin to normalise,” said Ahmad Yousef Al-Hassan, CEO and Managing Director of DP World GCC.

He added that DP World’s immediate priority remains “keeping cargo moving safely and reliably” through its regional multimodal network, while giving customers the flexibility and visibility they need during this period.

A smoother return of vessels through Hormuz would support port activity, warehousing, trucking, re-exports and regional distribution, all of which are central to Dubai and the wider UAE’s role as a trade hub.

Oman and Iran back safe passage

The commercial outlook follows a joint statement issued by Oman and Iran after talks in Muscat during the visit of Iranian Parliament Speaker Dr. Mohammad Bagher Ghalibaf and Foreign Minister Dr. Abbas Araghchi.

Oman affirmed its support for the Islamabad Memorandum of Understanding signed between the United States and Iran, and said continued dialogue and coordination were important for its successful implementation.

Oman and Iran, the two coastal states bordering the Strait of Hormuz, reaffirmed their commitment to ensuring safe passage through the Strait in line with international law, while also stressing their sovereignty and sovereign rights over their respective territorial waters.

The two countries agreed to sustain dialogue through a joint working group between their foreign ministries. The group will discuss the future management of navigation in the Strait, including services and associated costs, while also engaging with littoral states in the region and other related parties.

What residents should expect now

The near-term impact for UAE residents is likely to be confidence and stability first, followed by gradual cost relief if the situation holds.

Lower uncertainty across global markets can support trade, investment and business planning. It can also help reduce pressure on household budgets if oil and shipping costs remain lower for an extended period.

The most evident consumer benefit over the next few months may be steadier prices and stronger availability, especially for imported goods that rely on shipping schedules. Significant price cuts will depend on how long the route remains stable, how quickly freight rates adjust, and when retailers replace higher-cost inventory with new shipments bought at lower logistics costs.