Sharjah approves $12.1bn budget for 2026 with focus on infrastructure, growth and social welfare

The budget was officially approved by Sheikh Dr. Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, and is designed to support long-term development in all cultural, scientific, economic and social sectors, while ensuring safety, public security and sustainability of energy, water and food resources.

The general budget for 2026 aims to strengthen the government’s ability to finance initiatives and projects, provide appropriate housing solutions for different sectors of citizens, and develop tourism infrastructure that supports cultural, recreational and social tourism.

These programs are expected to contribute greatly to sustainable economic development in all countries.

Sharjah’s budget for 2026

Organized around the dual objectives of financial stability and economic competitiveness, the budget also focuses on addressing social and employment needs, while continuing major projects in all cities and districts of Sharjah amid ongoing urban development, culture and tourism.

Expenditures in the 2026 budget increased by three percent compared to 2025. Major projects account for 35 percent of the budget, underscoring the government’s continued commitment to infrastructure investment.

Key cost allocations include:

• Salaries and wages: 30 percent
• Operating costs: 25 percent
• Grants and assistance: about 12 percent
• Loan payments and interest: 15%, which represents a decrease of one percent from 2025
• Major expenses: about 2 percent of the total budget

This structure is intended to strengthen financial stability while ensuring that the government is able to meet its operational and development obligations.

Budget by economic sector

The budget planning by economic sector highlights Sharjah’s key strategies for 2026:

• Infrastructure sector: 35 percent of the total budget, the largest share, reflecting its key role in development, sustainability and attracting investors.
• Economic development: about 30 percent, which means an increase of 17 percent from 2025
• Community Development: about 23 percent, up 6 percent year-on-year
• Government administration, safety and security: about 12 percent, marking a 16 percent increase compared to 2025

These allocations emphasize a balanced focus on economic growth, social welfare and institutional strength.

Income growth and diversification

On the revenue side, the government has prioritized expanding revenue streams and improving collection efficiency through smart, technology-driven tools.

Total public revenue in the 2026 budget increased by 26 percent compared to 2025. Operating income comprised 69 percent of revenue, up 16 percent, while capital gains represented 10 percent, up 35 percent year-on-year.

Tax revenues comprise about 16 percent of public revenue, more than doubling and increasing by 101 percent by 2025. Tax revenue contributes 3 percent, while oil and gas revenue accounts for about 2 percent of total revenue.

Financial perspective

Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Ministry of Finance, said the budget establishes a clear framework of strategic and financial priorities in line with the directives of the Ruler of Sharjah, the vision of the Executive Council and the strategic objectives of the department.

He said these programs aim to achieve a high level of financial sustainability and efficiency in the management of government resources, improve Sharjah’s competitiveness in all economic, social, infrastructure, cultural and tourism sectors, while strengthening the financial capacity of government agencies to deliver services that meet global standards.

Sheikh Mohammed bin Saud also highlighted the budget’s emphasis on digital transformation, including electronic payment and collection systems, developed in collaboration with relevant organizations. These efforts support the restructuring process, reduce bureaucratic inefficiencies and improve service quality, while strengthening the role of the Sharjah Digital Department.

A three-dimensional budget

Explaining the basic framework of the budget, Sheikh Mohammed bin Saud said: “The general budget for 2026 adopts a three-pronged approach.

“The second dimension is strategic in nature, emphasizing the development of the financial stability of the government and its capacity to support strategic and operational activities, initiatives and projects.

“The third aspect concerns the development of the government services system and the improvement of macroeconomic indicators, including important strategies to boost the economy of the emirate through the provision of discounts and the review of various service fees, thereby reducing the cost of doing business for customers and investors.”

Long-term durability

Budget 2026 prioritizes job creation, skills development and human investment, while strengthening Sharjah’s position as a hub for culture, science, tourism and economic activities. It also aims to mitigate global and regional challenges, including inflation, rising interest rates, recession and country risk.

In line with the government’s financial plan for 2023–2030, the budget focuses on balancing spending in areas that have a limited impact on competitiveness, improving the efficiency of spending and diversifying funding sources to ensure long-term sustainability.