UAE Approves Record Budget for 2025

The UAE cabinet has greenlit the largest budget in the country's history for the fiscal year (FY) 2025, at AED 71.5 billion (US$19.47 billion), with projected revenues of AED 71.5 billion (US$19.47 billion), reflecting a balanced approach to income and spending, according to Emirates News Agency – WAM.^[1]  

The 2025 budget is part of the UAE’s Union General Budget Plan in the 2022-2026 financial plan. The budget was approved during a meeting chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai. 

Projections from the Central Bank of the UAE (CBUAE) suggest that the non-oil sector will grow by 5.2 percent in 2024 and 5.3 percent in 2025. This growth is supported by ongoing reforms, including 100 percent ownership of foreign businesses and tax changes, which are designed to attract more foreign investment. 

The AED 71.5 billion budgeted expenditure for 2025 marks an 11.5 percent increase from 2024. The federal budget is separate from the individual budgets of the emirates, which manage their own financial allocations. For example, Dubai has set a budget of AED 246.6 billion ($67.14 billion) for the 2024-2026 fiscal cycle, while Sharjah approved a 2024 budget of AED 40.83 billion ($11.12 billion). 

Despite these separate budgets, the federal budget provides insight into the government’s spending priorities.  

Allocation of the 2025 Federal Budget 

The federal budget for 2025 is distributed across several key sectors, focusing on social development, infrastructure, and financial investment. The largest portion of the budget, AED 27.86 billion ($7.59 billion) is earmarked for social development and pensions, representing 39 percent of the total budget. This includes AED 10.914 billion ($2.97 billion) for public and higher education programs, AED 5.745 billion ($1.56 billion) for healthcare and community prevention services, AED 3.74 billion ($1.02 billion) for social affairs, and AED 5.71 billion ($1.55 billion) for pensions. Public services will receive AED 1.75 billion ($476.450 million). 

#مجلس_الوزراء برئاسة محمد بن راشد يعتمد الميزانية العامة للاتحاد للسنة المالية 2025 بمصروفات قدرها 71.5 مليار درهم#حكومة_الإمارات #UAEGOV pic.twitter.com/9AwSYK3hu7

— UAEGOV (@UAEmediaoffice) October 8, 2024

Government affairs will receive AED 25.57 billion ($6.96 billion) or 35.7 percent of the total budget. Infrastructure and economic affairs are allocated AED 2.581 billion ($702.695 million), while AED 2.86 billion ($778.655 million) is designated for financial investments. An additional AED 12.62 billion ($3.44 billion) has been set aside for other federal expenditures. 

The UAE government remains focused on enhancing its global competitiveness through careful financial planning. The 2025 budget supports economic, social, environmental, and service sector growth while maintaining a balanced budget to support long-term development projects.