The UAE cabinet has approved a federal budget with total expenditures of AED90.1bn ($24.5bn) for 2027. That is 2.5% less than the AED92.4bn approved for 2026.

The 2027 budget is the first year of a federal budget plan for 2027-29, which has a total outlay of AED292.5bn ($79.6bn), which is 28.3% increase when compared to the previous three year period of 2024-2026. The cabinet is chaired by UAE Vice-President and Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al-Maktoum.

Neither the revenue estimate for 2027 nor the split of the plan across its three years has been disclosed. The AED292.5bn total implies combined spending of AED202.4bn in 2028 and 2029, or an average of AED101.2bn a year. That would put spending in both later years above the 2027 level and the record budget of 2026.

The 2026 budget was approved in October 2025 and balanced revenues and expenditure at AED92.4bn. According to state news agency Wam, it was the largest federal budget in the country’s history and 29% higher than the 2025 budget.

Spending mix

The social development and pensions sector has been allocated AED34.6bn, or 38.4% of the 2027 total. This is unchanged in absolute terms from 2026. Within this sector, public and university education accounts for 18.8% of the total budget. Healthcare accounts for 6.7%, pensions for 6.4%, social affairs for 4.4% and public services for 2.1%.

Government affairs will receive AED29.1bn, or 32.3% of the budget, up from AED27.1bn in 2026. Federal expenses have been allocated AED17.8bn, or 19.7%, compared with AED12.7bn a year earlier.

The financial investments sector will receive AED5.6bn, equal to 6.2% of the budget. This is down from AED15.4bn in 2026, a fall of 64%. The AED9.8bn reduction is larger than the overall AED2.3bn decline in the budget, so it more than offsets the increases elsewhere.

The infrastructure and economic sector has been allocated AED3bn, or 3.4% of the total, up from AED2.6bn in 2026.