Increase in federal spending in UAE to support economic growth in 2025
(MENAFN) The Interregional Center for Strategic Analysis highlighted that the increase in federal spending in the UAE is set to support the country’s economic growth in 2025. This growth will be further bolstered by strategic government policies and initiatives aimed at promoting economic diversification and attracting foreign investments. The UAE government has approved a federal budget for 2025 with an increase of nearly 12 percent in spending, bringing the total to 71.5 billion dirhams. Approximately 40 percent of the budget is allocated to social development and pensions, with a focus on sectors such as education and healthcare.
The center’s report projected that Abu Dhabi will continue to enhance spending on non-oil sectors as part of its 2025 budget, emphasizing renewable energy projects, infrastructure, industry, and various service sectors. These efforts are expected to attract significant foreign investments. Fitch Agency had previously estimated that government spending in Abu Dhabi for 2024 would range between 260 and 300 billion dirhams, with the emirate achieving a financial surplus equivalent to 5.4 percent of its GDP that year.
Dubai also revealed an expansionary budget for the 2025-2027 period, totaling 272 billion dirhams, with a significant portion dedicated to infrastructure development. Meanwhile, the Emirate of Sharjah approved its largest-ever general budget, amounting to 42 billion dirhams, while the Ajman government approved a 2025 budget of 3.7 billion dirhams. These budgets reflect the commitment of various emirates to increasing spending on key development projects.
The UAE’s budgets for 2025 are focused on fostering economic growth through multiple key strategies, including boosting government expenditure on infrastructure and stimulating non-oil sectors. These initiatives are aligned with the country’s broader objectives to diversify its economy, reduce reliance on oil revenues, and create an attractive environment for foreign investment.
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