DUBAI — The UAE Cabinet has approved a three-year Federal General Budget Plan for 2027–2029 with a total financial outlay of AED 292.5 billion, anchoring the country’s medium-term development strategy in fiscal sustainability and expanded social spending.
Chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, the Cabinet also endorsed the federal spending plan for the 2027 fiscal year, set at AED 90.1 billion. The statutory measures adhere to Federal Decree-Law No. 26 of 2019 on Public Finance and its amended provisions, establishing a consolidated financial base to empower federal bodies in meeting key performance targets.
Strategic Objectives and Digital Integration
The three-year budgetary framework is designed to deliver high-quality public outcomes across economic, environmental, and social sectors, while sharpening the country’s global competitiveness. A defining component of the cycle is the embedding of advanced digital systems, notably artificial intelligence and data-driven financial analytics, across government planning mechanisms.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, stated that the value of the allocations lies primarily in the lasting, sustainable impact delivered to citizens and residents. He noted that the central priority of the spending programme is to refine administrative efficiency and accelerate forward-looking initiatives aligned with the national ‘We the UAE 2031’ blueprint.
He emphasised that the UAE’s fiscal strategy balances economic expansion and capital investments with disciplined public accounts and refreshed regulatory frameworks, shielding the national economy from shifting macroeconomic conditions.
Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini added that the budget plan, developed in consultation with federal entities under guidance from the UAE General Budget Committee, marks a transition towards greater operational agility and optimal allocation of federal reserves.
Sectoral Allocations for Fiscal Year 2027
Spending for the 2027 fiscal year directs substantial resources towards human capital and essential public provisions. The Social Development and Pensions sector represents the largest single share, receiving AED 34.6 billion, or 38.4 per cent of the total expenditure. Within this envelope, general and higher education programmes command 18.8 per cent of total national outlays, followed by healthcare at 6.7 per cent, state pensions at 6.4 per cent, social welfare affairs at 4.4 per cent, and public utility services at 2.1 per cent.
Government Affairs comprises the second-largest portion, securing AED 29.1 billion, or 32.3 per cent of total budgetary spending, whilst Federal Expenses account for AED 17.8 billion, representing 19.7 per cent of the overall figure.
Financial investments and economic programmes make up the remaining share of the plan. The Financial Investments sector has been designated AED 5.6 billion, representing 6.2 per cent of the annual allocation, with AED 3 billion, or 3.4 per cent, assigned to the Infrastructure and Economic sector.
Through this balanced distribution of public expenditure, the federal leadership aims to reinforce economic diversification, upgrade public infrastructure, and insulate living standards against broader regional and global fluctuations.