The money will be spent in over the next two decades to ensure that Emiratis continue to have quality homes.
The number of citizens benefiting from the housing programme will increase by 400 per cent.
"Today, we approved the citizens' housing programme in Dubai in which we allocated a budget of 65 billion dirhams for the next twenty years," Sheikh Mohammed said.
"We also directed to immediately multiply four-fold the number of beneficiaries of the housing programme, and allocate new lands sufficient for citizens to live in for the next twenty years."
The Dubai Ruler said he will supervise the integrated housing policy himself.
"We have adopted an integrated housing policy, which I will supervise myself, and Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and Sheikh Maktoum bin Mohammed, deputy ruler of Dubai, will follow up its plans.
"Quality housing is a dignity and a right for all," he said.
"A decent life for the people of the country is the first priority for the government’s work."
Several housing areas designed for Emiratis have been completed in the UAE in the twelve months.
In May, a Dh1.264 billion ($344m) housing project for Emiratis was inaugurated in Al Mirfa City, Al Dhafra.
Al Mughirah project is located on the coast in Al Dhafra, and includes 410 modern villas designed with features inspired by Emirati culture. Each of the villas is 543 square metres in size and built on a plot of 1,080 square metres.
Located on the coast, Al Mughirah also includes four mosques, buildings for 30 shops, 13 parks and beach facilities.
In October 2020, a Dh674 million ($183.5m) development was opened in Abu Dhabi. Al Samha project is about a 40-minute drive from Abu Dhabi's city centre. The housing project was built for UAE citizens and comprised of 250 villas.