The United Arab Emirates' federal budget rises sharply

The economic development of the United Arab Emirates (UAE) continues to gather momentum with a projected budget of AED 71.5 billion.

This ambitious and balanced budget demonstrates the UAE's commitment to supporting key sectors and stimulating the economy. The General Union's budget plan forecasts revenues of AED 71.5 billion, equal to expenditure, including real estate, fintech, and business expansion.

This budget is part of the 2022-2026 financial strategy aimed at sustainable growth while remaining fiscally responsible.

The UAE economy, strong after the pandemic, continues to inspire confidence. GDP grew by 3.4% in the first quarter of 2024. Diversification of the economy, notably through the non-oil sector, remains a major focus, with growth expected to reach 5.3% in 2025.

Measures such as 100% foreign ownership and tax reforms have attracted international investors.

Fiscal investments will focus on social development (AED 27.86 billion), public education (AED 10 billion), and health (AED 5.7 billion). In addition, AED 25.57 billion will be dedicated to government affairs, and AED 2.58 billion to infrastructure and economic projects.

This federal budget is just one part of the UAE's overall government spending. For example, Dubai is planning a budget of AED 79.1 billion for 2024. Sharjah, meanwhile, has approved its largest budget to date of AED 40.83 billion for 2024.

These significant investments are boosting the UAE real estate market. The growing attraction for foreign investment is driving up demand for residential and commercial property. The expansion of public services, education and healthcare also enhances the country's attractiveness to expatriates and investors, increasing opportunities in the real estate sector.