Dubai approves 20% increase in infrastructure spending
25 November 2025
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Dubai has approved a 20% increase in infrastructure spending as part of its record AED99.5bn ($27.1bn) budget for 2026.
The spending for 2026 was approved alongside its largest-ever three-year general budget cycle covering 2026-28.
Infrastructure investments account for 48% or AED47.8bn of total projected expenditure and cover roads, bridges, tunnels, public transport, sewage systems, parks, renewable energy facilities, waste management and service buildings. Last year, 46% of the total budget, or AED39.7bn, was allocated for infrastructure.
Major projects
There are several major government infrastructure projects moving ahead in Dubai that will require billions of dollars of funding over the coming years. These include the $35bn expansion of Al-Maktoum International airport, the $4.9bn Blue Line extension to the Dubai Metro, and the $22bn Dubai Strategic Sewerage Tunnels (DSST) project, which is being developed on a public-private partnership basis. There has also been an uptick in the number of major road schemes under construction over the past three years.
The overall spending of AED99.5bn for 2026 is a 15% increase on the AED86.26bn of budgeted spending that was approved for 2024. Revenues for 2026 are projected at AED107.7bn, including AED5bn in general reserves. Based on these projections, Dubai’s Department of Finance (DOF) expects to achieve an operating surplus of up to 5% of the emirate’s projected GDP in 2026.
The 2026 budget was enacted under Law No. 15 of 2015 and approved by Sheikh Mohammed bin Rashid Al-Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai.
The newly approved general budget cycle for 2026-28 sets total planned expenditure at AED302.7bn and total revenues at AED329.2bn. According to the DOF, this three-year framework constitutes the largest budget cycle in Dubai’s history, underscoring the emirate’s medium-term commitment to public investment and fiscal planning.
As well as infrastructure, spending priorities for 2026 show an emphasis on social development with a 20% increase in spending when compared to 2024.
Social development receives 28% of total spending, directed towards sectors including health, education, scientific research, housing, family welfare, youth and sports, as well as programmes for seniors, retirees and people of determination.
The government has allocated 18% of total expenditure to the security, justice and safety sector, aiming to maintain it as one of the emirate’s globally recognised strengths through enhanced preparedness and operational excellence.
A further 6% of spending is set aside for government development initiatives that support performance enhancement and promote a culture of excellence, innovation and creativity within public sector institutions.
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The contract, titled TF-15-S1 Supervision of Stormwater Drainage System projects – Package 2, will be awarded as a single package with dedicated teams assigned to each project.
The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
The second, TF-15-C2, will deliver stormwater links along Umm Suqeim Road to serve the Al-Barsha and Al-Quoz communities.
The third project, TF-13-C1, focuses on developing a drainage system for the Al-Marmum area.
Several engineering, procurement and construction (EPC) contracts have been awarded under the Tasreef initiative, which aims to expand Dubai’s rainwater drainage capacity by 700% by 2033
In January, local firm DeTech Contracting won the main contract to construct a stormwater drainage system in Jebel Ali.
The project, listed under TF-05-C1, covers approximately 27 kilometres of stormwater network and will serve major transport routes, including Sheikh Zayed Road and Al-Jamayel Road.
Separately, Dubai Municipality has opened bidding for EPC contracts to expand and rehabilitate the emirate’s sewerage networks.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
DP4 assets: DP4 includes 54 villas, a clubhouse and other associated infrastructure.
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DP5 assets: The scope covers the construction of two hotels, branded residences, a retail facility and other associated works.
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DP6 assets: This package covers a 200-key Montage hotel, 96-unit Montage-branded residences and related infrastructure.
Bids due on 17 March.
DP7 assets: 120 five-bedroom villas, 230 seven-bedroom villas, 284 branded residential units and other infrastructural works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
The contract was awarded to the local firm Orascom Construction.
The scope of the contract covers the construction of residential units, commercial facilities and a 70-key hotel.
In September, MEED reported that Modon Holding had tendered contracts for the infrastructure works for the first phase of the Ras El-Hekma project.
As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
Ras El-Hekma is on a spur of land on Egypt’s northern Mediterranean coastline, about 240 kilometres west of Alexandria.
Last year, Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project.
According to an official statement, Modon will act as the master developer for the entire development, which will cover more than 170 million sq m.
Modon Holding will develop the first phase of the project, which will cover 50 million sq m.
The remaining 120 million sq m will be developed in partnership with private developers under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon Holding.
In September 2024, Modon signed several memorandums of understanding (MoUs) with local and international firms to join the development. It signed a framework agreement with Orascom Construction to serve as the primary contractor for the project’s first phase.
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Commercial International Bank Egypt (CIB) has provided €58m in credit facilities to local firm Elsewedy Electric for the construction of a combined-cycle gas turbine (CCGT) power plant in Hungary.
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It was awarded by MVM Matra Energia, a subsidiary of Hungary’s state-owned power holding company Magya Villamos Muvek (MVM).
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The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
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In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The Al-Madouneh customs centre covers about 1.3 million square metres (sq m) and was inaugurated in June last year.
The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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AD Ports Group operates the Aqaba cruise terminal, and selected Dubai-based real estate developer Mag Group to lead the first phase of the Marsa Zayed mixed-use project.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
The supplier park is located next to Ceer’s electric vehicle (EV) production facility in KAEC.
The automotive supplier park will include production and ancillary facilities for various suppliers and provide the material supply infrastructure for Ceer’s EV plant.
The facilities include:
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- Seat supplier – Lear Corporation (US)
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