UAE Announced 2027-2029 Budget Cycle, Focusing on AI and Sustainability

UAE Government Media Office stated that the new budget cycle demonstrates how the general budget serves as an annual planning tool and a strategic tool to help federal agencies.

The United Arab Emirates (UAE) launched its 2027–2029 budget cycle on Wednesday, emphasising efficiency, artificial intelligence (AI), and sustainability.

The budget cycle aims to enable artificial intelligence to improve decision-making and increase the accuracy of resource allocations. The approach was based on result-based execution and performance-based planning.

Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, stated that their budget cycle will play a crucial role in the development of the United Arab Emirates’ public financial system and is part of their government approach, driven by initiative, adaptability, and policy integration.

UAE Government Media Office stated that the new budget cycle demonstrates how the general budget serves as an annual planning tool and a strategic tool to help federal agencies.

The latest announced budget cycle follows four consecutive strategic cycles, as the government budget reached around Dh900 billion ($245 billion).

The Ministry of Finance focused on strengthening legal and regulatory frameworks, expanding international alliances, and developing cutting-edge financial systems.

As of June 2025, public debt reached Dh62.1 billion. At the end of 2024, federal government assets were around Dh464.4 billion.

According to Sheikh Maktoum, the Ministry of Finance was investing in intelligent tools and advanced analytical models that guarantee financial efficiency, optimize impact, and enable data-driven decision-making aligned with the country’s social, economic, and developmental objectives.

He continued that the government’s goal is to make a federal budget that promotes sustainable growth and raises the bar for quality government services.  

The new budget cycle focuses on areas like social welfare, healthcare, education, and essential government services.

The UAE Cabinet approved the country’s fiscal year 2025 general budget in October, describing it as the largest in the country’s history with an estimated spending of Dh71.5 billion. The Union General Budget Plan also expects revenue to reach Dh71.5 billion next year.

The UAE Cabinet approved a Dh192 billion federal budget for 2024–2026 in October 2023.

The UAE’s economy expanded by 4% last year thanks to a robust increase in its non-oil industry. The Ministry of Economy stated last month that the country’s real gross domestic product (GDP) has reached Dh1.776 trillion.

The non-oil sector grew 5% annually to Dh1.34 trillion, accounting for around 75% of the country’s economic activity. On the other hand, oil-related activities contributed Dh434 billion to the overall economy.

The UAE Central Bank predicts that the real gross domestic product will grow by 4.4% in 2025 and 5.4% in 2026. The regulator stated in June that it was due to robust non-oil activity and growth in the oil sector (because of the updated Organization of the Petroleum Exporting Countries (OPEC) output plans).

According to the report, the oil sector will increase by 4.1% in 2025 and by 8.1% in 2026, while the non-oil GDP will grow by 4.5% in 2025 and 2026.

Mohamed Al Hussaini, Minister of State for Financial Affairs, stated that the government has added artificial intelligence in the 2027–2029 budget cycle as a key factor for sustainable growth.

He added that the ministry’s recent transformation extends beyond digital and legislative changes to include a more comprehensive redesign of the budgeting process.

They shortened the procurement cycles from 60 days to under 6 minutes, and the budget preparation steps were reduced from 50 to 10.

The launch coincided with the federal government’s announcement of a new strategic planning cycle, “Towards Achieving We the UAE 2031” by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the UAE’s Vice President, Prime Minister, and Ruler of Dubai.