Mohammed bin Rashid approves Dubai Government’s General Budget Cycle for 2025-2027

In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved Law No. (23) of 2024 pertaining to the Government of Dubai's General Budget Cycle for the fiscal years 2025-2027, and the Dubai Government’s general budget for the fiscal year 2025.

The three-year budget cycle for 2025-2027 has been approved with a total expenditure of AED272 billion and a total revenue of AED302 billion. This budget cycle, the largest in the emirate’s history, 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.

Estimated expenditures for the fiscal year 2025 are AED86.26 billion, with revenues projected at AED97.66 billion. The budget also includes a general reserve of AED5 billion in revenues, underscoring the emirate’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 sectors such as health, education, culture, and infrastructure. This commitment is evident in strategies like the Education Strategy 2033 and the Dubai Social Agenda 33. Reflecting Dubai’s forward-thinking approach for sustainable development across all social segments, the 2025-2027 budget cycle aims to realise the inspiring vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to establish Dubai as a global benchmark for true well-being.

His Excellency Abdulrahman Saleh Al Saleh, Director General of Dubai Finance (DF), stated: “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.”

He 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. At DF, in collaboration with all government entities, we are dedicated to fulfilling the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and implementing the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai. Our focus is on increasing government support for key areas such as social development, housing for citizens, enhancing government operations, digitalising life in Dubai, advancing scientific research, boosting institutional agility, and strengthening the emirate’s global competitiveness.”

His Excellency the Director General of Dubai Finance affirmed: “The government is committed to working in accordance with the directives of His Highness 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.”

Sectoral distribution of government expenditures for 2025
The 2025 budget has allocated 30% of total government expenditures to the social development sector. 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, aligning with the goals of the Dubai Social Agenda 33 and the Education Strategy 2033.

On the other hand, 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.

Expenditures approved in the 2025 budget for the infrastructure sector and its related construction projects account for 46% of the government’s total spending. These projects encompass roads, tunnels, bridges, transportation systems, sewage stations, parks, renewable energy facilities, and the rainwater drainage network development plan. This also includes the recently announced Al Maktoum Airport development project and other initiatives supporting quality-of-life and promoting smart and sustainable transportation strategies in Dubai.

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.

Spending efficiency
Aref Abdulrahman Ahli, Executive Director of the Planning & General Budget Sector at DF, stated: “The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, supported by the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, have 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.