The UAE distributed more than Dh46 billion in Value Added Tax and Excise Tax revenues to federal and local governments by the end of 2025, marking a 15% increase from the previous year, the Ministry of Finance said.
The figure compares with about Dh41 billion in 2024 and points to a steady rise in non-oil government revenues, giving federal and emirate-level authorities a broader base to fund services, infrastructure and long-term development priorities.
Non-oil revenue base grows
VAT and Excise Tax have become important contributors to public finances since their introduction, helping the UAE diversify government revenue sources beyond hydrocarbons.
The latest numbers show how the tax system is now feeding into both federal and local budgets, with distributed revenues supporting fiscal stability while giving governments more visibility for planning.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the growth in tax revenues reflects the strength of the UAE’s fiscal approach and its ability to maintain stable government resources that support economic and development priorities in the years ahead.
He added that the financial data highlights the maturity of the UAE’s fiscal and tax framework, along with the transparency and discipline guiding the management of public resources.
Stronger fiscal planning
The Ministry of Finance said it is working closely with federal and local entities to improve the management of public revenues and strengthen the readiness of fiscal policies to respond to economic growth and future developments.
Source: Gulf news
