UAE cabinet approves five-year federal budget

The UAE cabinet has approved a general federal budget of AED 248 billion for the next five years, with a focus on education, health and community welfare.

The cabinet also approved a budget of AED 48.7 billion for 2017, with largest portions allocated to sectors related to social services.

The 2017 budget allotted 20.5 percent or AED 10.2 billion to the education sector, 8.6 percent (AED 4.2 billion) to the healthcare sector, 8.2 percent (AED 4 billion) to public sector pensions, 6.6 percent (AED 3.2 billion) to community development and 3.3 percent or (AED 1.6 billion) to housing.

Approximately 42 percent or AED 20.7 billion of the 2017 budget was allocated to government affairs sectors.

Within the budget, AED 3.3 billion was assigned to federal projects – AED 891 million for projects of the federal ministries and AED 771 million for power and water projects through Federal Authority for Electricity and Water.

Another AED 1.4 billion has been earmarked for projects under the Sheikh Zayed Housing Program, and AED 13.5 million for the projects of the education ministry.

In addition, AED 215 million was allocated to establish police and civil defense centers, and headquarters of naturalization and residence, and scientific laboratories.

A sum of AED 2 billion was set aside to support government innovation through the establishment of the Sheikh Mohammed bin Rashid Al Maktoum Fund to finance innovation.