UAE Approves AED292.5 Billion Federal Budget for 2027–2029, Allocates AED90.1 Billion for 2027
Dubai, The Gulf Observer: The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has approved the Federal General Budget Plan for 2027–2029, with total expenditure amounting to AED292.5 billion.
The Cabinet also approved the federal budget for the 2027 fiscal year, allocating AED90.1 billion as part of the three-year financial framework.
The approvals are in accordance with the relevant provisions of Federal Decree-Law No. 26 of 2019 on Public Finance, as amended, along with related resolutions and recommendations.
The three-year budget plan aims to strengthen fiscal sustainability and resilience, improve government financial performance, advance development priorities and reinforce the UAE’s international standing through effective partnerships.
It also seeks to enable federal entities to implement their strategic objectives and programmes efficiently, ensuring measurable outcomes across economic, social, environmental and public service sectors while enhancing the country’s global competitiveness.
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said the success of the 2027–2029 budget plan and the 2027 federal budget should be assessed not merely by the financial resources allocated but by the scale and quality of their sustainable impact on society.
He said the central objective of the three-year spending plan was to improve the efficiency of government instruments and accelerate development initiatives that enhance the quality of life for citizens and residents.
“The allocations for social development, particularly education and healthcare, reflect the wise leadership’s commitment to sustained investment in people,” Sheikh Maktoum said, adding that these investments would support efficient and proactive government services, strengthen social cohesion and advance the objectives of the We the UAE 2031 vision.
He further highlighted the importance of artificial intelligence and financial data analytics in improving public expenditure management, simplifying procedures and strengthening the resilience of the national economy amid global economic changes.
“We are not spending simply to meet the needs of today. We are investing in a proactive government services ecosystem that exceeds expectations and reinforces the UAE’s global leadership,” he added.
Sheikh Maktoum stressed that the UAE’s fiscal model maintained a careful balance between stimulating economic growth, financing strategic projects and upholding fiscal discipline. He noted that updating tax and development-related legislation would further support economic stability and international competitiveness.
Meanwhile, Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the new budget framework represented a significant step towards more agile and strategic management of public resources over the medium term.
He said the Ministry of Finance had coordinated with federal entities and followed the directives of the UAE General Budget Committee to equip ministries and institutions with the necessary tools to achieve their operational and strategic objectives in line with governance standards and future-readiness requirements.
The approach, he added, would ensure the optimal use of federal resources while reinforcing fiscal sustainability.
Social development receives largest allocation
Under the 2027 federal budget, the Social Development and Pensions Sector has received AED34.6 billion, representing 38.4 per cent of total expenditure.
The allocation includes 18.8 per cent of the overall budget for public and university education programmes, 6.7 per cent for healthcare, 6.4 per cent for pensions, 4.4 per cent for social affairs and 2.1 per cent for public services.
The Government Affairs Sector has been allocated AED29.1 billion, accounting for 32.3 per cent of the total budget, while AED17.8 billion, or 19.7 per cent, has been earmarked for Federal Expenses.
The Financial Investments Sector will receive AED5.6 billion, equivalent to 6.2 per cent of the budget, while AED3 billion, representing 3.4 per cent, has been allocated to the Infrastructure and Economic Sector.
Digital transformation and sustainable growth
The new federal strategic planning cycle places digital transformation at the centre of government operations, emphasizing the adoption of advanced technologies and artificial intelligence across public administration, economic activities, planning and financial analysis.
The initiative also aims to improve expenditure efficiency and strengthen the role of the federal budget as a strategic instrument for future preparedness, sustainable economic growth and the delivery of high-quality government services.
The distribution of expenditure reflects the UAE’s commitment to balanced development that supports economic and social stability while strengthening the country’s ability to respond to global economic shifts.
By prioritizing investment in education, healthcare, infrastructure and social services, the UAE aims to build a diversified and resilient economy while ensuring that development benefits citizens and residents.
The 2027–2029 budget framework is expected to support the country’s long-term development priorities, enhance government efficiency and further consolidate the UAE’s position as a competitive and stable economy at the regional and international levels.
