Breaking down UAE's 2024 budget: Prioritising growth, social welfare, and sustainability

The United Arab Emirates (UAE) has unveiled its federal budget for 2024, a soaring AED 65.72 billion, underlining a commitment to robust economic growth, social welfare, and fiscal sustainability.

The budget expands to 2026 as well, totaling AED 192 billion (approximately $52.3 billion), and it serves as a roadmap for the nation's financial program, aligning with the UAE's vision for the coming years.

Curious to find out about it? We have made a breakdown for you, this budget breakdown delves into the key allocations and sectors that highlight the UAE's focus on building a prosperous and inclusive society.

Economic overview: Balancing income and expenditure

The 2024 budget reports total estimated revenues of AED 65.728 billion, marking a 3.3% growth over the previous fiscal year. This is a projection of the upcoming year and where the expenditure will take place.

Total estimated expenses amount to AED 64.06 billion, demonstrating a 1.6% increase from the fiscal year 2023.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister, Deputy Ruler of Dubai, and Minister of Finance, shared the plan and the UAE's dedication to supporting vital sectors like health, education, and social care.

The federal general budget for 2024-2026 emphasises on efficient resource utilisation and a rational spending policy to facilitate economic and social development.

Emphasis has been placed on achieving sustainable development through financial flexibility and efficiency in government spending.

International standards and optimal resource utilisation

The Ministry of Finance adheres to best international standards to achieve the UAE's developmental objectives and economic policies. Focus on enhancing the efficiency of government spending and strategic resource allocation.

- Approximately AED 26.7 billion (42% of the total general budget) allocated to the social development and social benefits sector.

- AED 10.2 billion (16% of the total general budget) dedicated to public and university education programs.

- AED 5.2 billion (8% of the total general budget) allotted for healthcare and community protection.

- AED 3.6 billion (6% of the total general budget) directed toward social affairs.

- AED 6.1 billion (10% of the total general budget) earmarked for pensions.

- AED 1.5 billion (2% of the total general budget) allocated to public services.

- About AED 25.2 billion (39% of the total general budget) allocated to the government affairs sector.

- Approximately AED 2.6 billion (4% of the total general budget) set aside for infrastructure and economic resources.

- Close to AED 2.3 billion (4% of the total general budget) allocated to the financial investments sector, including AED 807.5 million for federal investment projects.

- Around AED 7.2 billion (11% of the total general budget) designated for other federal expenses.

The UAE's 2024-2026 budget underscores the nation's commitment to achieving sustainable growth and improving the well-being of its citizens and residents. By allocating resources efficiently across vital sectors, the UAE aims to build a prosperous and inclusive society that reflects the strength of its national economy and the balance of expenditures and revenues.

The budget sets a clear path for the UAE's future, focusing on diversifying revenue sources, supporting economic development, and enhancing social standards for all.

Curious to read further?

Take a read about UAE’s projected wealth, and what we could expect in line with UAE’s 2040 plan!