In a historic move, the United Arab Emirates has unveiled its most ambitious national budget to date for the fiscal year 2025. With a total expenditure set at AED71.5 billion ($19.5 billion), this budget highlights the nation’s commitment to expansive growth and socio-economic development. This financial blueprint comes on the heels of a significant surge in capital expenditure, which saw an increase of over 50% in early 2024, setting a robust foundation for continued economic advancement.
A substantial portion of the budget, 39%, has been earmarked for Social Development and Pensions, amounting to AED27.9 billion. This allocation underscores the UAE‘s dedication to bolstering public welfare, with public and higher education receiving 15.3% of the total budget, healthcare and community prevention services each receiving 8%, and pensions, social affairs, and public services also prioritized.
The Government Affairs sector will receive AED25.5 billion, accounting for 35.7% of the total budget, which reflects the ongoing efforts to streamline and enhance government operations. Meanwhile, the Infrastructure and Economic Affairs sector is allocated AED2.6 billion, aimed at furthering the country’s large-scale infrastructure projects. Moreover, AED2.9 billion will be dedicated to Financial Investments, as the UAE strengthens its financial foothold on the global stage.
The remaining 17.7% of the budget, totaling AED12.6 billion, will address other federal expenditures, ensuring comprehensive coverage across various governmental departments.
As the UAE continues to scale its infrastructure initiatives, the government’s capital expenditure trajectory illustrates a strategic focus on future-proofing the nation’s economy. Enhanced by a sevenfold increase in spending in the first quarter of 2024, reaching AED5.6 billion, this fiscal strategy is set to bolster the UAE’s infrastructural landscape through to 2025 and beyond.
Looking ahead, the UAE remains poised to match its record–breaking 2025 expenditure with anticipated revenues of AED71.5 billion, reflecting a balanced approach to fiscal management and economic growth. This budget not only signifies an unprecedented financial commitment but also positions the UAE as a leader in regional economic transformation, setting new benchmarks for prosperity and innovation.