The Cabinet of the United Arab Emirates has officially sanctioned a balanced budget for the fiscal year 2025, amounting to 71.5 billion dirhams (approximately $19.47 billion), according to a report from the state news agency on Tuesday. This budget marks a notable 12% increase compared to projections for the previous fiscal year, yet the UAE remains committed to ensuring that its revenues align with expenditures, maintaining the budgetary balance at 71.5 billion dirhams.
Part of a Broader Financial Strategy
This 2025 budget is an integral component of the UAE’s comprehensive financial framework that spans from 2022 to 2026. Last October, the country had already moved to approve its budget for the 2024-2026 period, totaling around $52.3 billion. These multi-year financial plans reflect the UAE’s steadfast commitment to ensuring fiscal stability and responsible long-term economic planning.
Focus on Social Development
A significant portion of the 2025 budget is earmarked for social welfare services, demonstrating a priority on improving the quality of life for citizens in the UAE. Approximately 40% of the entire budget is allocated for social development initiatives and pension schemes. Notably, the education sector is set to receive the largest share of these funds, as the government aims to enhance educational services. Furthermore, substantial investment will also be directed toward the healthcare sector, highlighting the government’s commitment to ensuring that these vital areas receive the support needed for the betterment of the population.
Allocations for Government Affairs and Infrastructure
In addition to social spending, over 35% of the budget is designated for government affairs, facilitating effective public administration and governance. The allocations reflect a balanced approach, also covering infrastructure, economic development, and financial investments, although these areas receive comparatively smaller portions of the budget compared to social sectors.
The UAE is a federal entity comprising seven emirates, each empowered to pursue independent budget initiatives that complement the federal budget. The emphasis on social expenditures underscores the UAE’s dedication to supporting its citizens while maintaining robust financial stability.
