UAE approves AED 292.5 bn federal budget for 2027-2029

The cabinet approved AED 292.5 bn in federal spending for 2027-2029, up 28.3% from the 2024-2026 budget, state news agency Wam reports. But the first year of the plan runs the other way: the AED 90.1 bn allocated for 2027 is 2.5% (or AED 2.3 bn) below the record AED 92.4 bn budget approved for 2026.

Social spending still takes the biggest slice in 2027, but the mix is shifting. Social development and pensions received AED 34.6 bn (38.4%), unchanged from 2026, followed by government affairs at AED 29.1 bn (32.3%), up from AED 27.1 bn last year, and federal expenses at AED 17.8 bn (19.7%), up 40% from AED 12.7 bn. Financial assets and investments (AED 5.6 bn, 6.2%) and infrastructure and economic resources (AED 3 bn, 3.4%) round out the list.

The investment line explains the dip. The allocation for financial assets and investments in 2027 is down 64% from AED 15.4 bn in 2026. That AED 9.8 bn drop is bigger than the AED 2.3 bn fall in the total — by our count, the other lines add up to AED 84.5 bn in 2027, up 9.7% from AED 77 bn. The 2026 allocation was itself a spike: financial investments took AED 2.9 bn (about 4%) of the 2025 budget, roughly half the 2027 figure, though the category labels differ slightly between years. Wam’s report does not explain the cut.

What about revenues? Unlike the 2026 budget, which put revenues at AED 92.4 bn, matching spending, the 2027 announcement gives no revenue estimate, leaving the planned fiscal balance unclear.

REMEMBER- Federal spending expanded sharply over the past two years. The government approved AED 71.5 bn for 2025, followed by a 29.2% increase for 2026. The Finance Ministry began preparations for the 2027-2029 budget cycle in July last year, with a focus on education, healthcare, social welfare, and core government services.