The current focus on innovation proves the UAE's commitment to developing its economy and increasing its global competitiveness. As The National reported yesterday, the Cabinet has approved a Dh248 billion federal budget for the next five years, allocating Dh2bn for the establishment of the Mohammed bin Rashid Innovation Fund. Having a dedicated fund for innovation will support the UAE's vision to place itself among the 10 most innovative countries internationally by 2021.
Innovation does not happen instantly, of course, but requires long-term investment as well as fundamental changes in mindset, environment and culture. Supporting innovative ideas will not only strengthen the economy but will also contribute to the development of many sectors, such as renewable energy, transport and space exploration. It could also help provide solutions for national issues, such as water and food security.
The budget for 2017 – which delivers a fractional increase from this year’s Dh48.57bn to Dh48.7bn in 2017 – also places great emphasis on social development, education and health. About 20 per cent of the 2017 budget, or Dh10.2bn, has been earmarked for the education sector, 8.6 per cent or Dh4.2bn to the health care sector and 3.3 per cent or Dh1.6bn to housing.
“Utilising the financial resources to achieve the highest degree of prosperity and welfare of the citizens and residents is a priority, underlining education, health and community welfare as key pillars for the development of society,” said Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.
In a region far too often characterised by failing and underperforming states, this budget – and the broader five-year forecast it is attached to – sends out a powerful statement on how to build a functioning and flourishing nation.
The Cabinet is intent on adjusting to the new reality of lower oil prices by, where appropriate, reducing subsidies and making cuts in certain areas of public spending, while at the same time continuing a broader narrative of progress through a clarity of vision and the smart reprogramming of resources and funds. In an era characterised by austerity and swingeing cuts to public spending around the globe, the Cabinet has sought to balance the requirements of the economy with the everyday needs of citizens.
