Social Development and Social Benefits

  • AED 26.04 billion (42.6% of the budget) was allocated to the social development and social benefits sectors
  • AED 9.6 billion (15.7% of the budget) was allocated to public, higher and university education programmes
  • AED 4.97 billion (8.1% of the budget) was allocated to healthcare and community protection
  • AED 3.4 billion (5.6% of the budget) was allocated to social rights and activating community integration
  • AED 4.6 billion (7.6% of the budget) was allocated to social welfare programmes directed to military veterans and civilians’ pensions 

Government Affairs

  • AED 21.3 billion (34.8% of the budget) was allocated to government affairs
  • AED 4.5 billion (7.4% of the budget) was allocated to infrastructure and economic resources
  • AED 19.3 billion (31.6% of the budget) was allocated to social development

Federal Projects

  • AED 3.93 billion was allocated to federal projects such as building a railway network in the UAE, the UAE Space Agency, as well as infrastructure development projects.

H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, reaffirmed that the support of President H.H. Sheikh Khalifa bin Zayed Al Nahyan, and H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, was the main reason behind the UAE’s excellence in directing financial resources to achieve the highest quality of life for citizens and residents.

H.H. said: “The Federal Budget for the fiscal year 2021 was in accordance with the best international standards and applied the latest electronic systems, to improve expenditure efficiency and direct spending towards strategically important sectors. That, in addition to enhancing government entities’ ability to implement and achieve their goals and programmes with the required efficiency.”

The Cabinet, chaired by H.H. Sheikh Mohammed bin Rashid Al Maktoum, approved the Federal Budget of AED 58.1 billion for the fiscal year 2021, which is the last year of the five-year plan (2017-2021). The approval came after the announcement of the new structure of the federal government, which included merging ministries and entities and changing powers and responsibilities.

H.H. praised the vision and directives of the wise leadership in directing financial resources to achieve the highest quality of life and happiness for citizens and residents in the country, and to provide the highest levels of social care to deserving groups. H.H. also praised the wise leadership’s directives to provide the best healthcare and educational services, and to develop the necessary infrastructure to enhance local investments and attract foreign capital in industrial, commercial, real estate and service sectors. That, in addition to providing a network of modern roads and distinguished government services.

H.H. noted that the main objectives of developing the Federal Budget and preparing it in the form of periodic plans are to improve the level of social services provided; focus on upgrading smart government services and increasing the level of customer satisfaction; and highlight the efforts of the federal government to provide welfare, prosperity, happiness and security for all community members.

H.H. said: “The wise leadership has laid solid foundations for government work that supports the UAE’s directions and its march to achieve the UAE Centennial 2071. The aforementioned seeks to position the UAE in first place globally in various fields; make it the best country and the best government in the world; and provide it with the best healthcare system according to the highest international standards. That, in addition to achieving the best higher education system, the best competitive knowledge-based economy, and the world's happiest community.”

The Ministry of Finance (MoF) held remote workshops for all federal entities, to train their specialists on the procedures, steps and rules required to prepare the federal budget in accordance with the zero-based budgeting (ZBB) system of the federal government. The workshops also explained the decisions and Financial Circular issued concerning the preparation of the 2021 draft budget.

Smart system for job budgets:

In line with the UAE's smart government strategy, and its continuous efforts to develop all e-systems across government entities, MoF in cooperation with the Federal Authority for Government Human Resources, launched the smart system for job budgets. The system aims to automate the periodic procedures of job budgets and eliminates paper transactions.

The 2021 Federal Budget focuses on directing federal financial resources to achieve the federal entities’ goals and programmes in accordance with the government’s strategy, in order to ensure sustainable and balanced development. This is in line with MoF’s mission to ensure the best use of government resources and implement effective financial policies. Federal entities have updated their draft budgets for the fiscal year 2021 in the automated budget preparation system within the five-year plan 2017-2021 – in line with the UAE Vision 2021 and UAE Centennial 2071.

Allocations of the Federal Budget for the fiscal year 2021 were distributed among the various sectors as follows:

First: Social Development and Social Benefits

AED 26.04 billion (42.6% of the budget) was allocated to social development and social benefits sectors, and AED 9.6 billion (15.7% of the budget) was allocated to public, higher and university education programmes. From the aforementioned 9.6 billion, AED 6.2 billion (10.2% of the budget) was allocated to public education programmes, and AED 3.4 billion (5.5% of the budget) was allocated to higher and university education programmes.

AED 4.97 billion (8.1% of the budget) was allocated to healthcare and disease prevention, in order to provide the best healthcare to citizens and residents. Also allocated were all the necessary funds to mitigate the COVID-19 pandemic.

AED 3.4 billion (5.6% of the budget) was allocated to social rights and activating community integration, to ensure the country’s sponsorship of those who deserve support and to provide subsidies to special groups in need of care.

AED 4.6 billion (7.6% of the budget) was allocated to social welfare programmes directed to military veterans and civilians’ pensions.

Second: Government Affairs

AED 21.3 billion (34.8% of the budget) was allocated to government affairs, to provide the latest services and achieve justice for all community members. The is in line with the wise leadership's vision for the UAE to be a safe and secure country for citizens and residents.

AED 4.5 billion (7.4% of the budget) was allocated to infrastructure and economic resources, and AED 19.3 billion (31.6% of the budget) was allocated to social development. AED 4.6 billion (7.6% of the budget) was allocated to social welfare programmes, and AED 7.7 billion (12.7% of the budget) was allocated to other federal expenses. AED 3.1 billion (5% of the budget) was allocated to financial assets and investments, which represents the contribution of the federal government to the Emirates Investment Authority (EIA), the Emirates Development Bank (EDB), and the Etihad Rail. Additionally, AED 529 million was allocated to other services.

Third: Federal Projects:

AED 3.93 billion was allocated to federal projects, and was distributed as follows:

  • The Federal Budget for the fiscal year 2021 included allocations to financing the federal government's share of establishing the UAE railway network at an amount of AED 1.4 billion.
  • AED 126 million was allocated to the UAE Space Agency
  • AED 963 million was allocated to infrastructure development projects.

-Ends-

For more information, please contact:
Mary Khamasmieh
Weber Shandwick
E: mkhamasmieh@webershandwick.com 

Rawad Khattar
Weber Shandwick
E: RKhattar@webershandwick.com   

Sara Abuhassira
Weber Shandwick
E: SAbuhassira@webershandwick.com 

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© Press Release 2020

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