With a 12% increase in spending, the UAE cabinet has approved the highest budget ever for the fiscal year 2025, at AED 71.5 billion ($19.5 billion). This significant increase comes after a nearly 50% increase in capital expenditures at the beginning of the year. In addition to this record-breaking spending, the UAE expects AED 71.5 billion in revenue this year.
The Social Development and Pensions sector receives a large budget (39%, or AED27.9 billion). This category includes contributions to public and higher education (15.3%), healthcare and community prevention (8%), pensions (8%), social affairs (5.2%), and public services (2.5%).
AED 25.5 billion is allocated to the Government Affairs sector, accounting for 35.7% of the overall budget. AED2.9 billion (4%) is set aside for financial investments, while the Infrastructure and Economic Affairs sector receives AED2.6 billion (3.6% of the budget) in total. Other federal expenses, or AED12.6 billion claim the remaining 17.7%.
In the first half of 2024, the UAE had a 50.7% increase in capital expenditure, with AED5.6 billion spent in Q1. Even with a 17% decline in Q2, overall investment is still high.
