The budget was formally approved by Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, and is designed to support long-term development across cultural, scientific, economic and social sectors, while ensuring security, social safety and the sustainability of energy, water and food resources.
The 2026 general budget aims to strengthen the government’s capacity to finance strategic initiatives and projects, provide appropriate housing solutions for various categories of citizens, and develop tourism infrastructure that supports cultural, recreational and social tourism.
These initiatives are expected to contribute significantly to sustainable economic development across the emirate.
Sharjah budget 2026
Structured around the twin objectives of financial sustainability and economic competitiveness, the budget also focuses on addressing social and employment needs, while continuing capital projects across Sharjah’s cities and regions amid ongoing urban, cultural and tourism-led development.
Expenditures in the 2026 budget increased by 3 per cent compared with 2025. Capital projects account for 35 per cent of total spending, underlining the government’s continued commitment to infrastructure investment.
Key expenditure allocations include:
- Salaries and wages: 30 per cent
- Operating expenses: 25 per cent
- Subsidies and aid: approximately 12 per cent
- Loan repayments and interest: 15 per cent, reflecting a 1 per cent decrease from 2025
- Capital expenditures: approximately 2 per cent of the total budget
This structure is intended to reinforce financial stability while ensuring the government can meet its operational and development obligations.
Budget by economic sector
Classifying the budget by economic sector highlights Sharjah’s strategic priorities for 2026:
- Infrastructure sector: 35 per cent of the total budget, the largest allocation, reflecting its central role in development, sustainability and investment attraction
- Economic development: approximately 30 per cent, representing a 17 per cent increase from 2025
- Social development: around 23 per cent, up 6 per cent year-on-year
- Government administration, security and safety: about 12 per cent, marking a 16 per cent increase compared with 2025
These allocations underscore a balanced focus on economic growth, social well-being and institutional capacity.
Revenue growth and diversification
On the revenue side, the government has prioritised expanding revenue sources and improving collection efficiency through smart, technology-driven tools.
Total public revenues in the 2026 budget increased by 26 per cent compared with 2025. Operating revenues account for 69 per cent of total revenues, up 16 per cent, while capital revenues represent 10 per cent, rising 35 per cent year-on-year.
Tax revenues account for approximately 16 per cent of total public revenues, more than doubling with a 101 per cent increase from 2025. Customs revenues contribute 3 per cent, while oil and gas revenues account for around 2 per cent of total revenues.
Finance perspective
Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Finance Department, said the budget establishes a clear framework of strategic and financial priorities aligned with the directives of the Ruler of Sharjah, the vision of the Executive Council and the department’s strategic objectives.
He said the initiatives aim to achieve high levels of financial sustainability and efficiency in managing government resources, enhancing Sharjah’s competitiveness across economic, social, infrastructure, cultural and tourism sectors, while strengthening the financial capacity of government entities 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 entities. These efforts support process re-engineering, reduce bureaucratic inefficiencies and enhance service quality, while strengthening the role of the Sharjah Digital Department.
Three-dimensional budget
Outlining the budget’s core framework, Sheikh Mohammed bin Saud said: “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.”
Long-term resilience
The 2026 budget prioritises employment creation, skills development and human capital investment, while strengthening Sharjah’s position as a hub for culture, science, tourism and economic activity. It also aims to mitigate global and regional challenges, including inflation, rising interest rates, economic slowdown and geopolitical risks.
Aligned with the government’s financial plan for 2023–2030, the budget focuses on rationalising expenditure in areas with limited impact on competitiveness, improving spending efficiency and diversifying funding sources to ensure long-term sustainability.
