Dubai unveils largest budget for next three years with spending of $74bn

Dubai has unveiled its largest government budget for 2025-2027, with spending of Dh272 billion ($74 billion) that is designed to meet the emirate's future economic strategy.

In 2025 alone, expenditure is pegged at Dh86.26 billion, with nearly half – 46 per cent – to be spent on infrastructure, including roads, bridges, transportation systems and renewable energy facilities, as well as the announced Al Maktoum Airport development, as it looks to manage a population boom.

The city welcomed at least 100,000 new arrivals last year and plans to grow from 3.8 million today to 5.8 million, or more, by 2040.

Revenues for the fiscal year 2025 are projected at Dh97.66 billion, with a general reserve of Dh5 billion.

“Today we approved the Dubai government budget for 2025-2027 with revenues of Dh302 billion and expenditures of Dh272 billion, the largest in the emirate’s history,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X.

The budget is “a clear expression of the emirate’s determination to support development projects, stimulate the overall economy and achieve the ambitious goals” of programmes including Dubai Plan 2030, the Dubai Economic Agenda (D33) and Quality of Life Strategy 2033, Sheikh Mohammed said.

Up to 30 per cent of the budget is allocated to health, education, social development housing and other community services. About 18 per cent of the budget will be allocated to security, justice and safety.

Around 6 per cent of the budget will be earmarked for public services, government excellence, creativity, innovation and scientific research.

“Next year’s budget will achieve an operating surplus of 21 per cent of total revenues for the first time. The goal is to create financial sustainability for the Dubai government,” Sheikh Mohammed said.

Dubai is a major trade, tourism and business centre in the Middle East, attracting businesses and talent from all over the world with more flexible visa schemes, infrastructure spending and its economic diversification programme.

Its economic sectors have further been enhanced by the latest advancements in technology, and the emirate has rolled out initiatives to help businesses and residents adopt these innovations as it prepares for the economy of the future.

Dubai, along with Abu Dhabi, have ranked first globally for ease of entry for global talent in this year's Global Cities Index released last week.

The emirate also remained the world's top destination for greenfield foreign direct investment projects in the first half of 2024, despite challenging global economic conditions, a study from Financial Times' fDi Markets showed earlier this month.

“Dubai is moving towards the future with full confidence. Its financial sustainability is solid, steady and advanced,” Sheikh Mohammed said.

The UAE, the second-largest economy in the Arab world, has maintained strong momentum since bouncing back from the pandemic-driven slowdown.

The country's gross domestic product, which grew by 3.4 per cent in the first quarter of this year, is expected to expand by 4 per cent in 2024 on the back of a boost from its non-oil sector, according to the latest data from the UAE Central Bank.

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The non-oil sector is projected to remain strong at 5.2 per cent in 2024 and 5.3 per cent in 2025, driven mainly by efforts to boost foreign investment and continuing structural reforms such as 100 per cent ownership of foreign businesses and tax reforms, the banking regulator said.

Earlier this month, the UAE Cabinet approved the general budget of the Emirates for fiscal year 2025, “the largest” in the country's history, with spending estimated at Dh71.5 billion.

The Union General Budget Plan for next year also projects revenue at Dh71.5 billion, maintaining “a balanced approach between income and spending”, the media office said.

Last month, Sheikh Mohammed said the UAE and Dubai “draw upon a distinctive vision and clear roadmap for development”.

The national focus is set on social, economic and investment priorities and the UAE has “read the future well” by tracking global changes and seizing opportunities, he added.

Sheikh Mohammed also highlighted the UAE’s commitment to fostering an environment conducive to business growth, both for local entrepreneurs and international investors, state news agency Wam had reported.