Dubai has announced its largest government budget for 2025-2027, allocating Dh272 billion ($74 billion) to support the emirate's long-term economic strategy.

Spending is set at Dh86.26 billion for 2025, with nearly 46% dedicated to infrastructure projects, such as roads, bridges, transportation systems, and renewable energy facilities, alongside the planned expansion of Al Maktoum Airport to accommodate a growing population.

Dubai recorded at least 100,000 new residents last year and aims to expand its population from the current 3.8 million to over 5.8 million by 2040. 

Forecast revenues for the 2025 fiscal year stand at Dh97.66 billion, with a general reserve of Dh5 billion, The National reports.

“Today we approved the Dubai government budget for 2025-2027 with revenues of Dh302 billion and expenditures of Dh272 billion, the largest in the emirate’s history,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X.

He went on to add that the budget is “a clear expression of the emirate’s determination to support development projects, stimulate the overall economy and achieve the ambitious goals” of programmes such as Dubai Plan 2030, the Dubai Economic Agenda (D33) and Quality of Life Strategy 2033.

Around 30% of Dubai’s budget is allocated to health, education, social development, housing, and other community services. Another 18% is directed toward security, justice, and safety initiatives, while around 6% is reserved for public services, government excellence, creativity, innovation, and scientific research.

“Next year’s budget will achieve an operating surplus of 21% of total revenues for the first time. The goal is to create financial sustainability for the Dubai government,” Sheikh Mohammed said.

In addition, despite global economic challenges, Dubai retained its position as the world’s leading destination for greenfield foreign direct investment projects in the first half of 2024, according to a recent study from Financial Times' fDi Markets.

“Dubai is moving towards the future with full confidence. Its financial sustainability is solid, steady and advanced,” Sheikh Mohammed added.