Share

Sheikh Mohammed approves Dubai’s largest ever budget for 2025-2027 with $82.2 billion expected revenue

For FY 2025, estimated expenditures are set at AED86.26 billion, with anticipated revenues of AED97.66 billion
Sheikh Mohammed approves Dubai’s largest ever budget for 2025-2027 with $82.2 billion expected revenue
In the 2025 budget, Dubai is committed to enhancing social services and elevating the quality of life across essential sectors such as health, education, culture, and infrastructure. (Photo Credit: Dubai Media Office)

In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has sanctioned Law No. (23) of 2024, which pertains to the General Budget Cycle for the Government of Dubai for the fiscal years 2025-2027, along with the general budget for the fiscal year 2025. This three-year budget cycle for 2025-2027 has received approval for a total expenditure of AED272 billion ($74 billion), while total revenue is projected to reach AED302 billion ($82.22 billion). Marking the most substantial budget cycle in the emirate’s history, it reflects Dubai’s aspirations for sustainable economic growth, enhanced community welfare, and the reinforcement of its status as a hub of opportunity and innovation.

For the fiscal year 2025, estimated expenditures are set at AED86.26 billion, with anticipated revenues of AED97.66 billion. The budget also incorporates a general reserve of AED5 billion in revenues, highlighting the emirate’s dedication to fostering development projects, invigorating the overall economy, and achieving the ambitious objectives outlined in the Dubai Plan 2030, the Dubai Economic Agenda D33, and the Quality-of-Life Strategy 2033.

In the 2025 budget, Dubai is committed to enhancing social services and elevating the quality of life across essential sectors such as health, education, culture, and infrastructure. This dedication is reflected in initiatives like the Education Strategy 2033 and the Dubai Social Agenda 33. Emphasizing Dubai’s progressive vision for sustainable development across all societal facets, the 2025-2027 budget cycle aims to realize the inspiring vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, positioning Dubai as a global benchmark for genuine well-being.

Commitment to financial sustainability

His Excellency Abdulrahman Saleh Al Saleh, director general of Dubai Finance (DF), emphasized the organization’s commitment to achieving financial sustainability for the government, enhancing competitiveness and transparency, and increasing Dubai’s attractiveness for investment. He noted that the financial plans at Dubai Finance are designed to be both flexible and scalable.

He further explained that the budget for the fiscal year 2025 aligns with the Dubai Strategic Plan 2030 and the Dubai Economic Agenda D33, in addition to the recently launched Dubai Cashless Strategy, which aims to establish Dubai as a leader in the digital economy.

Al Saleh also noted that at Dubai Finance, in collaboration with all government entities, there is a dedication to fulfilling the vision set forth by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, as well as implementing the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai. The focus remains on increasing government support for critical areas such as social development, housing for citizens, enhancing government operations, digitalizing life in Dubai, advancing scientific research, boosting institutional agility, and strengthening the emirate’s global competitiveness.

Commitment to financial discipline

Al Saleh highlighted the government’s commitment to following the directives of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, in adopting disciplined financial policies. He noted that the establishment of a general reserve, which is deducted annually from revenues, aims to support financial stability and is projected to reach approximately AED15 billion for the years 2025-2027. This strategy of reserving annual surpluses is intended to promote financial sustainability and enhance the financial position of the emirate. Throughout the implementation of the three-year financial plan, an operating surplus of up to 4 percent of the expected GDP for the year 2025 is anticipated, thereby reinforcing the foundations of financial sustainability for the emirate.

Read more: Capital Economics expects UAE to achieve significant budget surplus in 2024

Sectoral allocation of government expenditures for 2025

The budget for 2025 has earmarked 30 percent of total government expenditures for the social development sector. This allocation encompasses health, education, scientific research, housing, and support for vulnerable families, women, and children. It also prioritizes investments in youth and sports, as well as care for the elderly, retirees, and individuals with determination, aligning with the objectives of the Dubai Social Agenda 33 and the Education Strategy 2033.

Moreover, a significant portion of the budget is directed towards the security, justice, and safety sector, which receives 18 percent of total expenditures to ensure its ongoing support and development—an area critical to the emirate’s stability.

Infrastructure spending, along with related construction projects, constitutes 46 percent of the government’s total budget for 2025. These projects include roads, tunnels, bridges, transportation systems, sewage facilities, parks, renewable energy installations, and the development of a rainwater drainage network. Notably, this allocation includes the recently announced Al Maktoum Airport development project, along with other initiatives aimed at enhancing quality of life and advancing smart and sustainable transportation strategies within Dubai.

Furthermore, the emirate has allocated 6 percent of total government expenditures to bolster the public services sector, enhance government excellence, and promote creativity, innovation, and scientific research. This investment is intended to improve performance and foster a culture of excellence and innovation.

UAE's GDP UBS

Promoting public-private partnerships

Aref Abdulrahman Ahli, executive director of the Planning & General Budget Sector at Dubai Finance, emphasized that the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, along with the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has been instrumental in promoting sound financial planning. He acknowledged that, under their guidance, an unprecedented three-year financial plan was developed, marking the largest in the emirate’s history.

He further explained that the budget for the fiscal year 2025 not only aligns with the requirements of the Dubai Strategic Plan 2030 and beyond but also reflects the emirate’s stable financial position. This stability has resulted from disciplined financial policies grounded in best practices, which have led to an operating surplus of 21 percent of total government revenues, thereby ensuring the desired financial sustainability for the emirate.

Ahli concluded by stating that Dubai Finance is dedicated to developing and implementing efficiency programs for government spending. The organization continues to promote the public-private partnership system, especially following the introduction of a new portfolio of public-private partnership projects valued at AED40 billion earlier this year.

Supporting digitalization strategy

Ahmad Ali Meftah, acting executive director of the Central Accounts Sector at Dubai Finance, indicated that the three-year budget cycle for 2025-2027 has been carefully crafted to support Dubai’s digitalization strategy. This initiative includes the digitization of government fee payment channels to streamline customer transactions and improve overall satisfaction. He noted the launch of the Smart Installment System for government fees and mentioned that a pilot program for the Biometric Payment System, utilizing faceprint and palmprint technology, is underway in collaboration with several government entities.

He further pointed out that the smart collection of government fees through digital channels has seen a substantial increase, with 97 percent of transactions across various government entities in Dubai being digital in 2023. Ahmad Meftah added that the recently announced Dubai Cashless Strategy aims to achieve 90 percent cashless transactions in both the public and private sectors by 2026.

For more economy news, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.