UAE Cabinet Announces Record Budget for 2025

The UAE cabinet has approved the largest budget in the nation's history for the fiscal year (FY) 2025, at US$19.47 billion, with matching revenues, reflecting a balanced approach to income and spending, according to Emirates News Agency (WAM).

The 2025 budget is part of the UAE’s Union General Budget Plan under the 2022-2026 financial strategy. It was approved during a meeting chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai. The Central Bank of the UAE (CBUAE) forecasts non-oil sector growth of 5.2% in 2024 and 5.3% in 2025, driven by reforms, including 100% foreign business ownership and new tax policies, aimed at attracting investment.

The budget allocation for 2025 shows an 11.5% increase from 2024. Though the federal budget is separate from individual emirate budgets, such as Dubai's US$67.14 billion for 2024-2026 and Sharjah's US$11.12 billion for 2024, the federal plan reveals key spending priorities.

The largest portion of the 2025 budget, US$7.59 billion, is designated for social development and pensions. This includes US$2.97 billion for education, US$1.56 billion for healthcare, and US$1.55 billion for pensions. Public services will receive US$476.450 million.

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