UAE Cabinet Approves Largest Federal Budget in Country’s History for 2025

The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved the federal budget for 2025, amounting to Dh71.5 billion. This is the largest budget in the nation’s history, reflecting the continued strength of the UAE economy and the sustainability of its resources.

The new budget represents a significant increase from previous years, with the 2024 federal budget set at Dh64.06 billion, a 1.6 percent rise compared to the Dh63.066 billion budget for 2023. In 2022, the UAE had allocated a total federal budget of Dh252.3 billion for the years 2023 to 2026. The increase in the 2025 budget underlines the UAE’s commitment to fostering social development, government affairs, and infrastructure.

The majority of the 2025 budget will be directed towards social development and pensions, which together account for 39 percent of the total allocation, or Dh27.859 billion. Key allocations under the social development fund 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

In addition to social development, 35.7 percent of the budget, or Dh25.57 billion, will be dedicated to government affairs, supporting the ongoing efficiency and development of federal government services.

Further allocations include Dh2.864 billion (4 percent) for financial investments and Dh2.581 billion (3.6 percent) for infrastructure and the economic sector. Other federal expenses will total Dh12.624 billion, accounting for 17.7 percent of the total budget.

The approval of this record-setting budget highlights the UAE government’s strategic focus on advancing key sectors like education, healthcare, social services, and public pensions. It also demonstrates the UAE’s commitment to maintaining robust government operations and infrastructure development, ensuring long-term economic stability and growth.

This budget approval follows a series of major economic and fiscal reforms aimed at solidifying the UAE’s position as a global economic hub, while also focusing on improving the quality of life for residents and citizens alike.