The UAE’s latest federal budget – the country’s largest so far – provides some eye-catching numbers. With spending estimated at Dh71.5 billion ($19.5 billion) and the Union General Budget Plan for next year also projecting revenue at $19.5 billion, it is clear that a substantial and balanced programme of national finance has been built.
Such sums are a milestone for a country that has gone from a traditional way of life to joining the space race in one lifetime. $19.5 billion is bigger than some major international organisations’ yearly spends – the World Health Organisation’s programme budget for 2024 and 2025 is $6.83 billion and the European Space Agency’s budget for this year is €7.79 billion ($8.53 billion). But a closer look at exactly how the UAE will spend its carefully acquired resources reveals a lot about the country’s priorities and where it is going next.
The Emirates’ elderly and young people are an obvious consideration; the social development and pensions sector will receive the biggest allocation ($7.58 billion), which accounts for about 39 per cent of the total federal budget layout. More than $2.72 billion of that amount will be earmarked for public and higher education programmes, while billions more will go to healthcare services, social affairs and public services spending. Infrastructure is also being prioritised and is something that will benefit citizens and other residents alike.
All of this reflects a core aim of the UAE’s economic approach – supporting its people’s quality of life and providing opportunity for the many coming from all corners of the world to make the UAE their home. Tellingly, this budget also reveals how structural and legislative reforms coupled with economic diversification have truly moved the country’s economy out of the shadow of the pandemic-induced slowdown and into a new era.
Ambitious moves, such as introducing a corporate income tax, far from denting investor confidence have contributed to this increased national revenue. Allowing 100 per cent foreign ownership of businesses has helped buttress the Emirates’ encouraging investment environment. The UAE’s increasing budgets also run parallel to the country’s nimble adoption of an economic strategy that, although still deeply connected to the energy sector, has also embraced the benefits of global trade. The UAE’s signing of several comprehensive economic partnership agreements, or Cepas, with such economic heavyweights as India – as well as Abu Dhabi’s hosting of the World Trade Organisation’s 13th Ministerial Conference earlier this year encouraging global trade– are evidence of a multifaceted approach to raising national revenue.
The list of other ambitious programmes and strategies – from achieving net-zero emissions by 2050, tripling renewable energy capacity to 14GW by 2030, cutting food waste by 50 per cent within the next six years and becoming a world leader in AI, to name but a few – runs long. However, it is this budget’s focus on the people who live and work here that is most telling. Record-breaking figures are impressive but consistent year-on-year decisions and policies to build a better future for all is the ultimate investment in a nation’s future.
