Increasing the spending of the UAE government enhances economic growth opportunities in 2025

Increased federal government spending of the UAE contributes to continuing the economic growth of the state during 2025, while strategic policies and government initiatives entrenched this growth that aims to enhance economic diversification and attract foreign investment as the UAE government adopted a federal budget for 2025 with an increase of approximately 12% in spending, to reach 71.5 billion dirhams, with about 40% allocated to social development and pensions, including education and health care.
It is expected that during the 2025 budget, Abu Dhabi is expected to increase annual spending on non -oil sectors, which include renewable energy projects, infrastructure and industry as well as the various service sectors, which contributes to attracting foreign investments, as Fitch expected earlier that government spending for the Emirate of Abu Dhabi would range For the year 2024, between 260 billion and 300 billion dirhams, and that the emirate achieves a financial surplus of 5.4% of the GDP in 2024.
Dubai announced an expansionary budget for the years (2025-2027), with a total expenditure of 272 billion dirhams, with a large percentage allocated to infrastructure projects, while the Emirate of Sharjah adopted the largest general budget in its history with total expenditures amounting to about 42 billion dirhams, and the Ajman government also approved the budget. For the year 2025, at a value of 3.7 billion dirhams.
The Abu Dhabi-based Interregional Center for Strategic Analyzes confirmed that the UAE budgets for 2025 aim to support economic growth through several main axes, including increasing government spending on infrastructure projects, stimulating non-oil sectors, enhancing social services, and spending on technology, industry, and clean energy. This reduces dependence on the oil resource and enhances the sustainability of growth. It also works to achieve a financial surplus that contributes to macroeconomic stability and enhances confidence in the business environment.
According to the reports of the International Monetary Fund and the World Bank, the UAE is expected to achieve an economic growth rate ranging between 4% and 6% during the year 2025 thanks to the expansion policies in its budgets and international financial institutions agree on these positive expectations, as the International Monetary Fund raised its expectations for the growth of the real GDP of the country The UAE in 2025 to 5.1%, while the Arab Monetary Fund expects 6.2% growth for the same year.
And “Interrogunal” pointed out that these expectations are based on several factors, most notably: the UAE sought to strengthen non -oil sectors, such as tourism, transportation, financial services, insurance, construction and real estate, which contributes to achieving sustainable growth and expanding the economic partnership network to increase trade exchange and attract investments, including It enhances economic growth opportunities and focuses on developing advanced technology and artificial intelligence sectors, which contributes to enhancing productivity and stimulating economic growth.
The most prominent growth factors for the UAE economy during 2025 include political stability and a stimulating legislative environment with continued supportive economic policies to attract investors and entrepreneurs from around the world, strengthening the financial sector through advanced banking services, in addition to supporting Islamic finance and financial markets.

The trade sector highlights at the forefront of the sectors expected to achieve significant growth rates during 2025, as the UAE sought to expand its foreign trade to 25.6 trillion dirhams by 2033, indicating continuous growth in this sector.
The transport and aviation sector represents one of the most frequent and more frequent sectors in air traffic during the current year, while the aviation sector contributes about 15% of GDP.
It is expected that the financial services and insurance sector will continue to grow thanks to supporting government policies and attract foreign investment, as it is expected that significant growth in the construction sector and real estate with continued construction projects and the development of infrastructure. The telecommunications and technology sector is one of the sectors that will achieve growth during the year 2025 with a focus on Digital transformation and innovation.