Dubai approves historic budget with record 21% revenue surplus

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved Law No. (23) of 2024 for Dubai's General Budget Cycle for 2025-2027, and the Government’s general budget for 2025, according to the Emirates News Agency (WAM).

The three-year budget, the largest in Dubai’s history, outlines a total expenditure of AED272 billion and revenue of AED302 billion. This budget aligns with future ambitions to promote sustainable economic growth, enhance community well-being, and solidify Dubai's reputation as a land of opportunity and innovation, reported WAM.

Projected expenditures for 2025 are AED86.26 billion, with revenues estimated at AED97.66 billion. The budget includes a general reserve of AED5 billion in revenues, underscoring Dubai's commitment to supporting development projects, stimulating the overall economy, and achieving the ambitious goals of the Dubai Plan 2030, the Dubai Economic Agenda D33, and the Quality-of-Life Strategy 2033.

In the 2025 budget, Dubai remains focused on enhancing social services and improving the quality of life in key health, education, culture, and infrastructure sectors. Initiatives like the Education Strategy 2033 and Dubai Social Agenda 33 underscore Dubai’s approach to sustainable development across all sectors, striving toward Sheikh Mohammed bin Rashid Al Maktoum’s vision of Dubai as a global benchmark for well-being.

WAM quoted Abdulrahman Saleh Al Saleh, Director-General of Dubai Finance (DF), stating, “Dubai Finance is committed to achieving the government's financial sustainability, enhancing competitiveness and transparency, and boosting the emirate’s attractiveness for investment. Our financial plans are designed to be both flexible and scalable.”

Al Saleh added, “The 2025 fiscal year budget aligns with the Dubai Strategic Plan 2030 and the Dubai Economic Agenda D33, as well as the recently launched Dubai Cashless Strategy, which aims to position Dubai as the capital of the digital economy.

The Director-General of Dubai Finance affirmed, “The government is committed to working in accordance with the directives of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, to adopt disciplined financial policies. Last year, we established a general reserve that is deducted annually from revenues to support financial stability, which is scheduled to reach about AED15 billion for the years 2025-2027. This approach of reserving annual surpluses promotes financial sustainability and strengthens the financial position of the emirate. During the implementation of the three-year financial plan, we expect to achieve an operating surplus of up to 4% of the expected GDP for the year 2025, anchoring the foundations of financial sustainability for the emirate.”

The 2025 budget allocates 30% of total government expenditures to social development. This encompasses health, education, scientific research, housing, and support for needy families, women, and children. It also includes investments in youth and sports and care for the elderly, retirees, and people of determination.

Significant attention has been given to the security, justice, and safety sector, with 18% of total expenditures dedicated to its support and development. This sector remains one of the most critical in the emirate.

Infrastructure spending accounts for 46% of the 2025 budget, funding projects including roads, transportation, sewage, parks, renewable energy, and the development of Al Maktoum Airport. These investments support Dubai’s smart and sustainable transport strategies and enhance quality of life.

Additionally, the emirate has allocated 6% of total government spending to support the public services sector, government excellence, creativity, innovation, and scientific research. This investment aims to enhance performance and cultivate a culture of excellence, innovation, and creativity.

Aref Abdulrahman Ahli, Executive Director of the Planning and General Budget Sector at DF, stated, “The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, supported by the directives of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has been a driving force for sound financial planning. Thanks to their guidance, we were able to develop an unprecedented three-year financial plan, the largest in the history of the emirate.”

“The 2025 fiscal year budget not only meets the requirements of the Dubai Strategic Plan 2030 and beyond, but also showcases the emirate’s stable financial position. This stability has been driven by disciplined financial policies rooted in best practices, which have contributed to achieving an operating surplus of 21% of total government revenues, ensuring the desired financial sustainability for the emirate,” he added.

“At Dubai Finance, we are committed to developing and implementing government spending efficiency programmes. We continue to stimulate the public-private partnership system, especially following the launch of a new portfolio of public-private partnership projects, valued at AED40 billion, earlier this year,” Aref Ahli concluded.

Ahmad Ali Meftah, Acting Executive Director of the Central Accounts Sector at DF, said, “The three-year budget cycle for 2025-2027 has been meticulously designed to support Dubai’s digitalisation strategy. This includes digitising government fee payment channels to streamline customer transactions and enhance their satisfaction. We have launched the Smart Installment System for government fees and are piloting the Biometric Payment System for faceprint and palmprint, in collaboration with several government entities.”

“Smart collection of government fees via digital channels has significantly increased, with 97% of transactions across various government entities in Dubai being digital in 2023. Our Dubai Cashless Strategy, announced recently by the Government of Dubai, aims to achieve 90% cashless transactions in both public and private sectors by 2026,” Ahmad Meftah added.