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The UAE's economy has taken another step away from dependence on oil revenues. The Ministry of Finance announced that the total distributed revenues from Value Added Tax (VAT) and excise taxes have reached over 46 billion dirhams by the end of 2025, a figure that shows a 15% increase compared to the previous year.

This revenue was approximately 41 billion dirhams in 2024, and its increase indicates that the government's non-oil financial resources are growing at a faster pace. This is helping the federal government and local governments to plan more confidently for the development of infrastructure, public services, and long-term projects.

Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, regarded this growth as a sign of the robustness of the UAE's financial policies and stated that the country's tax system has reached a level of maturity that can provide sustainable and predictable resources for the economy.

According to the Ministry of Finance, tax revenues have today become one of the main pillars of government financing and play a significant role in maintaining economic stability and funding developmental projects.

The importance of these figures is not only in the increase of revenues; it also shows that while the UAE remains one of the lowest-tax economies in the world for businesses and residents, it has managed to expand its sustainable and non-oil revenue sources. The result of this trend could mean more investment in infrastructure, public services, and increased resilience of the economy against future changes.

Source: Gulf News