UAE Approves Record Dh71.5 Billion Federal Budget. In a significant development underscoring the strength and sustainability of the UAE economy, the UAE Cabinet has approved the federal budget for 2025, amounting to Dh71.5 billion. This is the largest budget in the nation’s history and reflects the government’s ongoing commitment to growth, social welfare, and economic development. The announcement was made during a Cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai.
The federal budget for 2025 is a substantial increase over the previous years. In comparison, the federal budget for 2024 was set at Dh64.06 billion, marking a 1.6 per cent rise from the 2023 budget of Dh63.066 billion. Over the long term, the UAE had earmarked Dh252.3 billion for the years spanning 2023 to 2026, ensuring a robust financial framework for the future.
Key Allocations in the 2025 Budget
The 2025 budget prioritizes social development and government affairs, which together account for a significant portion of the total. Here is a breakdown of how the funds will be allocated:
Social Development and Pensions (39%)
Social development, along with pensions, forms the largest portion of the budget, reflecting the UAE’s commitment to enhancing the welfare of its citizens. The total allocation for social development stands at Dh27.859 billion, with the following breakdown:
- Dh10.914 billion for public and higher education programmes
- 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
Government Affairs (35.7%)
Another significant portion of the budget, Dh25.57 billion, will be directed towards government affairs, ensuring the smooth and effective operation of federal bodies and institutions.
Financial Investments and Infrastructure
The UAE also continues to invest in its future with:
- Dh2.864 billion (4 per cent) for financial investments
- Dh2.581 billion (3.6 per cent) for infrastructure and the economic sector
These investments reflect the country’s strategic vision to continue building a competitive and diversified economy while maintaining world-class infrastructure.
Additional Federal Expenses
Other federal expenses account for Dh12.624 billion (17.7 per cent), covering various sectors critical to the functioning and growth of the UAE’s federal institutions.
A Vision for Sustainable Growth
This record budget highlights the UAE’s ambitious plans to balance economic growth with social welfare, setting the stage for continued progress and prosperity. By prioritizing education, healthcare, and infrastructure, while also investing in long-term financial growth, the UAE is ensuring that its citizens benefit from the nation’s ongoing development. The approval of this budget is a clear indication of the UAE’s resilience and commitment to sustainable and inclusive economic policies.
As the country continues to chart its course for the future, the 2025 budget serves as a blueprint for the UAE’s strategic priorities, reinforcing its position as a global leader in governance, economic planning, and social welfare.
A Blueprint for a Prosperous Future
The approval of the Dh71.5 billion federal budget for 2025 represents a major step forward in the UAE’s long-term vision for sustainable development. By prioritizing investments in education, healthcare, infrastructure, and social welfare, the government is ensuring that the country remains competitive on the global stage while continuing to improve the quality of life for its citizens and residents.
As the UAE continues to evolve and grow, this historic budget provides a strong foundation for future progress. The government’s forward-thinking approach to financial planning, combined with its focus on innovation and sustainability, will no doubt keep the UAE on a path of prosperity for years to come.
Conclusion
The Dh71.5 billion federal budget for 2025 represents a bold and ambitious step forward in the UAE’s journey toward a prosperous future. By prioritizing key sectors such as education, healthcare, infrastructure, and social welfare, the government is ensuring that the country remains competitive on the global stage while also improving the quality of life for its citizens and residents. The UAE’s focus on sustainability, innovation, and financial stability will undoubtedly keep the country on a path of growth and prosperity for years to come, positioning it as a leader in the global economy and a model for other nations to follow.
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