In a landmark decision, the UAE Cabinet has approved a record-breaking federal budget of Dh71.5 billion for the year 2025, marking the largest budget in the nation’s history. This comprehensive financial plan aims to address various sectors, with a significant emphasis on social development, pensions, and government affairs. The budget reflects the UAE’s ongoing economic resilience and commitment to sustainable resource management.
The announcement came during a cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, as well as the Ruler of Dubai. Highlighting the budget’s significance, officials noted that this financial strategy represents a robust response to the nation’s evolving economic landscape, demonstrating a forward-thinking approach to national development.
Compared to the federal budget for 2024, which was set at Dh64.06 billion, the 2025 allocation signifies a remarkable increase. The UAE had previously announced a total federal budget of Dh252.3 billion for the years spanning from 2023 to 2026, indicating a long-term vision for financial planning and investment in national infrastructure and public services.
A substantial portion of the 2025 budget is earmarked for social development initiatives, which will receive 39% of the total allocation, alongside 35.7% directed towards government affairs. This translates to Dh27.859 billion and Dh25.57 billion, respectively.
Budget Breakdown: The allocations for social development include:
- Dh10.914 billion for public and higher education programs
- Dh5.745 billion for healthcare and community prevention services
- Dh3.744 billion for social affairs
- Dh5.709 billion for pensions
- Dh1.746 billion for public services
Additionally, the budget sets aside Dh2.864 billion (4%) for financial investments, and Dh2.581 billion (3.6%) will focus on enhancing infrastructure and economic sectors. Furthermore, other federal expenses are projected to amount to Dh12.624 billion, which accounts for 17.7% of the overall budget.
This detailed financial plan underscores the UAE’s commitment to fostering social welfare and driving national progress. By prioritizing education, healthcare, and community services, the government aims to create a sustainable future for its citizens, ensuring that the benefits of economic growth are felt across all sectors of society. The 2025 budget not only highlights the UAE’s strategic vision but also sets a positive precedent for future governmental financial planning and resource allocation.
