The UAE on Wednesday launched its 2027-2029 budget cycle, focusing on sustainability, artificial intelligence and efficiency.
“The budget cycle will play a key role in the development of the UAE’s public financial system and is part of our government approach driven by proactivity, flexibility and policy integration,” Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said on social media platform X.
The new cycle reflects the "evolution of the general budget from a yearly planning tool into a strategic instrument" that will support federal entities, the UAE Government Media Office said in a statement.
The newly launched budget cycle follows four consecutive strategic cycles during which the total federal budget reached about Dh900 billion ($245 billion), the statement said.
Over this period, the Ministry of Finance focused on enhancing legislative and regulatory frameworks, expanding international partnerships and developing advanced digital financial systems.
Public debt levels stood at Dh62.1 billion as of June 2025, while federal government assets reached around Dh464.4 billion by the end of 2024.
"The Ministry of Finance is investing in smart tools and advanced analytical models that ensure financial efficiency, optimise impact and enable data-driven decision-making aligned with the nation’s developmental, economic and social goals," Sheikh Maktoum said.
"Our vision is to transform the federal budget into a future-ready instrument that drives sustainable growth and elevates the quality of government services to new heights,” he added.
The new budget cycle focuses on sectors such as education, healthcare, social welfare and core government services.
Last October, the UAE Cabinet approved the general budget of the Emirates for the fiscal year 2025, describing it as the largest in the country's history, with spending estimated at Dh71.5 billion. The Union General Budget Plan for next year also projects revenue at Dh71.5 billion.
In October 2023, the UAE Cabinet approved a federal budget of Dh192 billion for 2024 to 2026.
UAE economy on growth trajectory
The UAE’s economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector. The country's real gross domestic product reached Dh1.776 trillion, the Ministry of Economy said last month.
The non-oil economy grew by 5 per cent annually to Dh1.34 trillion, accounting for more than 75 per cent of the country's economic activity, while oil-related activities contributed Dh434 billion to the overall economy.
The UAE Central Bank expects real GDP to expand by 4.4 per cent in 2025 and increase to 5.4 per cent in 2026. This performance is driven by the "expected robust dynamism" of non-hydrocarbon activities and a "robust increase" in the hydrocarbon sector following updated Opec+ production plans, the regulator said in June.
Non-hydrocarbon GDP is expected to grow by 4.5 per cent in 2025 and in 2026, while the hydrocarbon sector is projected to grow by 4.1 per cent in 2025, followed by an expansion of 8.1 per cent in the following year, it estimated.
The 2027–2029 budget cycle integrates AI as a key enabler of "sustainable development", said Mohamed Al Hussaini, Minister of State for Financial Affairs.
"The ministry’s transformation over recent years extends beyond legislative and digital reforms to include a complete redesign of the budgeting experience," he said.
"The number of budget preparation steps was reduced from 50 to just 10 and procurement cycles were shortened from 60 days to under six minutes."
