Budget Overview
The UAE federal budget for 2025 allocates AED 71.5 billion in total expenditure, representing a 4.2 percent increase over the 2024 budget of AED 68.6 billion. The budget emphasises social development, education, and infrastructure as priority spending areas.
| Parameter | 2025 Budget | 2024 Budget | Change (%) |
|---|---|---|---|
| Total Expenditure (AED bn) | 71.5 | 68.6 | +4.2 |
| Social Development | 42.2% of total | 41.8% | +0.4 pp |
| Federal Revenue (AED bn est.) | 73.0 | 69.5 | +5.0 |
| Fiscal Balance | Surplus | Surplus | - |
Expenditure by Sector
| Sector | Allocation (AED bn) | Share of Total (%) |
|---|---|---|
| Social Development & Benefits | 30.2 | 42.2 |
| Education | 14.6 | 20.4 |
| Healthcare | 6.4 | 9.0 |
| Infrastructure & Transport | 5.8 | 8.1 |
| Defence & Security | 5.2 | 7.3 |
| Government Affairs | 4.8 | 6.7 |
| Technology & Innovation | 2.5 | 3.5 |
| Other | 2.0 | 2.8 |
Social development commands the largest allocation, encompassing housing, pension schemes, welfare programmes, and Emirati employment support. Education receives the second-largest share, reflecting the national prioritisation of human capital development.
Revenue Sources
The UAE federal government derives revenue from multiple streams, with the diversification of sources accelerating since the introduction of VAT in 2018 and corporate tax in 2023.
| Revenue Source | Estimated Share (%) |
|---|---|
| Hydrocarbon Revenue (federal share) | 30-35 |
| Corporate Tax | 18-22 |
| VAT and Excise Taxes | 15-18 |
| Government Services and Fees | 12-15 |
| Investment Returns | 8-10 |
| Other Revenue | 5-8 |
Federal vs Emirate-Level Budgets
The federal budget represents a fraction of total public spending in the UAE. Individual emirates, particularly Abu Dhabi and Dubai, operate their own substantial budgets. Abu Dhabi’s government expenditure alone is estimated at AED 100-120 billion annually, funded primarily through ADNOC dividends and investment income.
| Budget Level | Estimated Scale (AED bn) |
|---|---|
| Federal Budget | 71.5 |
| Abu Dhabi Government | 100-120 |
| Dubai Government | 80-95 |
| Other Emirates (combined) | 15-25 |
| Estimated Total Public Expenditure | 267-312 |
Fiscal Policy Direction
The 2025 budget continues the trend of fiscal discipline with modest surplus targeting. Key policy priorities include expanding Emiratisation incentives through the Nafis programme, increasing healthcare infrastructure investment ahead of demographic transitions, and maintaining capital expenditure on strategic transport and energy projects.
Historical Federal Budget Trend
| Year | Budget (AED bn) | YoY Change (%) |
|---|---|---|
| 2021 | 58.1 | -1.6 |
| 2022 | 61.3 | +5.5 |
| 2023 | 63.1 | +2.9 |
| 2024 | 68.6 | +8.7 |
| 2025 | 71.5 | +4.2 |
Methodology
Federal budget data is sourced from the Ministry of Finance budget statement. Emirate-level estimates are based on published budget announcements and institutional analyses. Revenue composition estimates reflect publicly available fiscal data and independent assessments.