The UAE Ministry of Finance has unveiled the federal general budget cycle for 2027–2029, marking a strategic shift towards smarter, performance-based financial planning. With a focus on innovation, AI integration, and long-term sustainability, the new cycle aims to empower government entities, accelerate national development, and support the UAE’s vision for a Dh3 trillion economy.
The Ministry of Finance in the UAE has officially launched the federal general budget cycle for the period 2027 to 2029, marking a major milestone in the country’s efforts to reinforce fiscal sustainability and steer toward a future of innovation, flexibility, and efficiency. This strategic shift transforms the federal budget from a traditional financial planning document into a dynamic tool that empowers federal entities to execute their mandates with greater agility and purpose.
The newly introduced budget cycle is grounded in a vision of smart financial management, harnessing advanced technologies, including artificial intelligence, to enhance accuracy, speed, and effectiveness in resource allocation. By embedding performance-based planning and data-driven execution into the budgeting process, the UAE aims to ensure that every dirham spent delivers maximum impact across its developmental, economic, and social agendas.
This transformation reflects a broader evolution in public sector financial planning, moving beyond simple forecasting to the adoption of predictive models that simulate future scenarios. These tools will allow decision-makers to assess outcomes before implementation, thereby increasing precision in planning and enabling proactive governance. From enhancing service delivery to giving entities seamless access to high-quality data, the new system signals a major step forward in modern public finance.
The UAE’s budgetary reform positions the federal budget as a key driver of operational excellence, national competitiveness, and sustainable growth. It also aligns with the UAE’s long-term economic ambitions, including the target of achieving a Dh3 trillion GDP within the next decade. The Ministry of Finance emphasized that this approach supports the UAE’s vision to become a global leader in digital governance and fiscal innovation.
The 2027–2029 budget cycle follows four successful strategic cycles, during which the cumulative federal budget exceeded Dh900 billion. These cycles laid a strong foundation of legislative, regulatory, and technological improvements. Key outcomes include increased international financial partnerships, the rollout of advanced digital finance systems, and solid public debt management. As of June 2025, public debt remained stable at Dh62.1 billion, while federal government assets rose to approximately Dh464.4 billion by the end of 2024.
One of the key pillars of the new cycle is the prioritization of essential sectors such as education, healthcare, social welfare, and core government services. The Ministry has committed to allocating resources with a strategic focus on impact, ensuring that every budgeted dirham contributes to national development and the goals of UAE Centennial 2071. These priorities will be further supported by AI-based tools that improve the accuracy of planning, accelerate implementation, and enhance overall service quality.
The federal budget for 2025 already reflects this balanced approach. With total estimated revenues and expenditures both set at Dh71.5 billion, the budget underscores the UAE’s disciplined fiscal strategy. Approximately Dh27.86 billion, or 39% of the total budget, has been earmarked for social development and pensions. Within this, Dh10.91 billion is directed toward public and higher education, while Dh5.75 billion is allocated to healthcare and preventive services. Government affairs will receive Dh25.57 billion, representing 35.7% of the total budget.
This robust allocation reflects the country’s continued commitment to improving the well-being of its citizens and residents. Investment in these areas not only supports social stability but also strengthens the foundations of an economy transitioning away from oil dependence.
Recent economic data also paints a positive picture of diversification. In 2024, the non-oil GDP grew by 5%, reaching Dh1.342 trillion, while oil-related sectors contributed Dh434 billion. By the end of the year, non-oil activities accounted for 75.5% of the UAE’s GDP—a clear indication of the country’s progress toward economic resilience and diversification.
The newly launched cycle coincides with the start of a broader strategic planning phase known as "Towards Achieving We the UAE 2031", unveiled by the UAE leadership. This initiative aims to reinforce the nation’s global standing while building a sustainable and inclusive economic model.
In support of this shift, the Ministry of Finance has also undertaken a comprehensive transformation of the budgeting experience. Significant procedural simplifications have been made, including the reduction of budget preparation steps from 50 to just 10, and the compression of procurement cycles from 60 days to under six minutes. These reforms have dramatically enhanced institutional efficiency and performance.
Officials highlighted that the new budgeting model is designed to support long-term development, foster government excellence, and deliver high-quality services that meet the evolving needs of the public. The focus is not only on financial stewardship but also on strengthening the role of federal entities in shaping a forward-looking UAE.
As the UAE continues its journey toward becoming a global economic powerhouse, this budget cycle reaffirms the government’s commitment to data-driven governance, technological advancement, and responsible financial planning. The UAE’s approach offers a model for other nations aiming to modernize public financial systems and align them with national development priorities.
