The UAE federal government’s consolidated revenues came in at just under AED 120.8 bn in 1Q 2025, according to preliminary Finance Ministry data (pdf). This represents a mere 0.1% increase from the quarter last year, when revenues came in at AED 120.6 bn, according to the previous year’s data (pdf).

Taxes once again made up the lion’s share of the government’s overall revenues for the quarter, reaching AED 75.2 bn — representing 62.3% of the UAE’s total revenues in 1Q. Tax revenues were down 10.6% y-o-y.

Total expenditure rose by 10.9% y-o-y to reach AED 107.7 bn in 1Q, compared to just under AED 97.1 bn in the same quarter of the previous year. Breakdown of spending:

  • AED 31 bn were spent on salaries and employee compensation;
  • AED 29.6 bn went to spending on goods and services;
  • AED 17.4 bn were spent on social benefits;
  • AED 3.6 bn were allocated for financial interest payments;
  • AED 2.3 bn went to spending on subsidies;
  • AED 2.2 bn for fixed capital consumption;
  • AED 244.5 mn for grants;
  • AED 19.4 bn accounted for other unnamed expenses.

The UAE borrowed less in 1Q 2025 on an annual basis: Net lending/borrowing at the state level amounted to approximately AED 13.1 bn, down from AED 23.5 bn in 1Q 2024. The fiscal surplus narrowed from AED 23.5 bn in the same quarter last year.

REMEMBER- The UAE is projected to see fiscal surpluses averaging 3.2% of GDP until 2028 — but the surplus will halve relative to what was seen between 2021-2024, S&P Global Ratings wrote previously. Lower oil prices and higher government spending is expected to lower the surplus to 2% of GDP this year, after which it will average 3.8% over 2026-2028, bringing it below the 6.4% average for 2021-2024. Sharjah — unlike Dubai, Abu Dhabi, and Ras Al Khaimah — is expected to see a fiscal deficit of 5% of its GDP over the next four years.

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