Dubai Greenlights Largest Budget in History for 2025-2027
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, has approved Law No. (23) of 2024, which establishes the Government of Dubai's General Budget Cycle for the fiscal years 2025-2027. This three-year budget, totaling AED 272 billion in expenditures and AED 302 billion in revenues, is the largest in the emirate’s history and aligns with Dubai’s ambitious goals for sustainable economic growth and community well-being.
Key Highlights of the 2025 Budget
For the fiscal year 2025, estimated expenditures are set at AED 86.26 billion, while revenues are projected at AED 97.66 billion. Notably, the budget includes a general reserve of AED 5 billion, underscoring the government’s commitment to supporting development projects and stimulating the economy. This initiative is integral to achieving the ambitious goals outlined in the Dubai Plan 2030, the Dubai Economic Agenda D33, and the Quality-of-Life Strategy 2033.
Focus on Social Services and Infrastructure
The 2025 budget emphasizes enhancing social services and improving quality of life across critical sectors such as health, education, culture, and infrastructure. Strategies like the Education Strategy 2033 and the Dubai Social Agenda 33 reflect Dubai’s commitment to sustainable development for all segments of society. The budget aims to realize Sheikh Mohammed's vision of establishing Dubai as a global benchmark for well-being.
Abdulrahman Saleh Al Saleh, Director-General of Dubai Finance, stated that the budget is designed to ensure financial sustainability, enhance competitiveness, and boost the emirate’s attractiveness for investment. He emphasized that the financial plans are flexible and scalable, aligning with the Dubai Strategic Plan 2030 and the newly launched Dubai Cashless Strategy to position Dubai as the capital of the digital economy.
Social Development and Community Support
In a significant commitment to social development, 30% of total government expenditures in the 2025 budget will be allocated to the social development sector. This includes funding for health services, education, scientific research, housing, and support for vulnerable families, women, and children. The budget also prioritizes investments in youth, sports, and care for the elderly and people of determination, aligning with the objectives of the Dubai Social Agenda 33 and the Education Strategy 2033.
Investments in Security and Infrastructure
The budget allocates 18% of total expenditures to the security, justice, and safety sector, emphasizing its critical importance. Meanwhile, 46% of the budget is earmarked for infrastructure projects, which encompass roads, tunnels, bridges, transportation systems, sewage stations, parks, and renewable energy facilities. Notable initiatives include the development of Al Maktoum Airport and projects promoting smart and sustainable transportation in Dubai.
Commitment to Financial Stability and Efficiency
The 2025 budget is crafted to ensure disciplined financial policies and long-term stability. A general reserve is established to promote financial sustainability, expected to reach approximately AED 15 billion over the three-year period. The government anticipates achieving an operating surplus of up to 4% of the projected GDP for 2025, strengthening Dubai's financial position.
Digitization and Innovation in Government Services
A critical aspect of the 2025-2027 budget cycle is its focus on digital transformation. The budget supports the digitization of government fee payment channels, enhancing customer transactions and satisfaction. Ahmad Ali Meftah, Acting Executive Director of the Central Accounts Sector at Dubai Finance, noted that 97% of transactions across government entities were digital in 2023. The government aims to achieve 90% cashless transactions across public and private sectors by 2026.