RIYADH: The UAE Cabinet has approved a 292.5 billion UAE dirhams ($79.6 billion) federal budget plan for 2027–2029, including 90.1 billion dirhams allocated for 2027, with social development accounting for the largest share. 

According to an official statement, the Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president, prime minister and ruler of Dubai, approved both the three-year plan and the 2027 budget. 

The three-year allocation is 28.3 percent higher than the 227.1 billion dirhams allocated for 2024–2026. The 2026 federal budget totalled 92.4 billion dirhams, up 29 percent from 71.5 billion dirhams in 2025, as part of the UAE’s 347 billion dirhams federal spending plan for 2022–2026, according to the Emirates News Agency. 

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, deputy prime minister and minister of finance, said: “The allocations for social development, particularly education and healthcare, reflect the wise leadership's commitment to sustained investment in people.”

He added: “They will ensure the delivery of efficient, proactive government services that promote social cohesion while advancing the UAE’s competitiveness and the objectives of the ‘We the UAE 2031’ vision.”  

Hamza Dweik, head of trading for the Middle East and North Africa at Saxo Bank, said the budget “sends a very positive signal about the country’s economic priorities and its continued focus on improving quality of life.”

“What is particularly significant is how much of the budget is directed towards areas that have a direct impact on people,” he added.

Social spending takes largest share

The social development and pensions sector has been allocated 34.6 billion dirhams, accounting for 38.4 percent of the 2027 budget. Public and university education accounts for 18.8 percent of total spending, followed by healthcare at 6.7 percent, pensions at 6.4 percent, social affairs at 4.4 percent and public services at 2.1 percent. 

The government affairs sector has been allocated 29.1 billion dirhams, while federal expenses total 17.8 billion dirhams. The financial investments sector receives 5.6 billion dirhams, and the Infrastructure and Economic Sector receives 3 billion dirhams. 

Dweik said the budget balanced social priorities with spending intended to support the broader economy.

“The budget maintains a broader economic and institutional focus,” he said, adding that investment in infrastructure and economic resources could strengthen the foundations for future growth.

“Investment in infrastructure and economic resources can strengthen the foundations for future growth, while effective government services and investment can support the UAE’s attractiveness to businesses, investors and talent,” he added.

Sheikh Maktoum, who is also first deputy ruler of Dubai, said the three-year spending plan aims to improve the efficiency of government operations and accelerate development projects to enhance the quality of life for citizens and residents. 

Dweik said the multi-year approach also gave the government a longer planning horizon, supporting its objectives for economic growth, future readiness and improved public services.

AI and fiscal priorities

The statement said the UAE continues to strengthen its regional and global position in adopting advanced technologies, including the use of artificial intelligence across government and economic activities, as well as in planning and financial analysis. 

Sheikh Maktoum said the plan emphasises artificial intelligence and financial data analytics, alongside simplified procedures, to keep the national economy resilient amid global economic shifts. He added that the UAE’s financial model balances economic growth, funding for strategic projects and fiscal discipline, while updating tax and development-related legislation.