The UAE Cabinet has approved its federal budget for 2027 to 2029 with spending of Dh292.5 billion ($79.64 billion).
The allocation marks an increase of 28.3 per cent compared to the previous three years, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai said on Monday.
The Cabinet also approved the 2027 budget with expenditure of Dh90.1 billion.
Main sectors covered by the new federal budget include community protection and safety, the economy of the future, future-orientated education, employment and empowerment, health and quality of life, leadership, government affairs and international relations, the UAE Government Media Office said in a statement. The budget will also focus on industry, technology, energy, infrastructure, culture, media and sports.
“Our priorities remain fixed and unchanged … Education, health, housing, social services, and the quality of life and stability of the citizen,” Sheikh Mohammed said in a post on X.
The UAE last year launched its 2027-2029 budget cycle, focusing on sustainability, artificial intelligence and efficiency.
It followed four consecutive cycles during which the total federal budget reached about Dh900 billion ($245 billion), officials said in July last year, adding that the cycle focuses on sectors such as education, health care, social welfare and core government services.
The UAE's economy grew 0.4 per cent annually to Dh961.9 billion in the first half of 2026, driven by non-oil business activity, despite the impact of the Iran war.
The non-oil sector's contribution to the country's gross domestic product during the six-month period increased by 1.8 per cent to 79.2 per cent, the Federal Competitiveness and Statistics Centre said last week.
The Iran war has tipped the Middle East into one of its worst geopolitical crises in decades. The conflict, which began on February 28, led to Iranian strikes on its Arab neighbours and the closure of the Strait of Hormuz.
The UAE, the Arab world's second-largest economy, continues to grow despite the conflict.
Ratings agency Fitch said on Monday that the UAE non-oil growth model is broadly resilient to the war baseline. The non-oil growth model of the UAE has leveraged a role as a hub between Asia and Europe “backed by a favourable operating environment, supportive government policy, and the ability to attract and retain foreign labour and visitors”, it said in a report.
It added that it expects further measures to “improve the operating environment along with a smoothing of administrative procedures” for corporates and residents, backed by higher spending and other sources of financial support at the sovereign and government-related entity level.
“Fitch sees structural strengths that will support the resilience of the non-oil economy. However, a persistent period of regional insecurity will call into question logistical advantages and perceptions of the country as a commercial and financial centre and tourism destination,” said Paul Gamble, senior director at Fitch Ratings.
The approval of the budget confirms the UAE government’s “keenness to achieve a balance between current development requirements and investment in future opportunities, and to establish a government financial system characterised by flexibility, efficiency and sustainability”, the media office said on Monday.
It enhances the UAE’s position among the most advanced and prosperous countries in the world, it added.
Budget breakdown for 2027:
Dh34.6 billion (38.4 per cent) – Social development and social benefits
Dh29.1 billion (32.3 per cent) – Government affairs
Dh17.8 billion (19.7 per cent) – Federal expenses
Dh5.6 billion (6.2 per cent) – Financial assets and investments
Dh3 billion (3.4 per cent) – Infrastructure and economic resources
