In a historic move, the UAE Cabinet has approved the federal budget for 2025, amounting to Dh71.5 billion, marking the largest budget in the nation’s history. This approval highlights the UAE’s continued focus on fostering economic stability and sustainable growth, reflecting confidence in its resilient economy. The announcement came after a Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Key Highlights from the 2025 Federal Budget
- Social Development and Pensions: The largest allocation, with 39% of the total budget (Dh27.859 billion), will be directed toward enhancing social programs. This includes:
- Dh10.914 billion for public and higher education programs
- Dh5.745 billion for healthcare and community prevention services
- Dh5.709 billion for pensions
- Government Affairs: 35.7% of the budget will be allocated to government affairs, reinforcing the UAE’s focus on maintaining robust governance structures.
- Economic Investments: Dh2.864 billion (4%) is set aside for financial investments, while Dh2.581 billion (3.6%) will go toward infrastructure and economic development projects.
The 2025 federal budget showcases a significant increase compared to previous years. The 2024 budget stood at Dh64.06 billion, demonstrating a steady rise in government spending aimed at bolstering the country’s social infrastructure and economic growth.
In 2022, the UAE allocated a total federal budget of Dh252.3 billion to cover 2023-2026, underscoring its long-term vision for sustainable development.
Experts in the region emphasize that the growing government spending aligns with the UAE’s commitment to maintaining its position as a global economic hub.
Increased allocations for social services and infrastructure reflect the government’s strategic focus on improving quality of life while driving UAE economic growth. According to industry leaders, this budget signals a positive outlook for investors and businesses, reinforcing confidence in the region’s economic trajectory.
