UAE approves federal budget of 292.5 billion dirhams for the next three years

The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, announced the government's approval of a federal budget worth 292.5 billion dirhams (approximately $79.64 billion) for the period from 2027 to 2029, representing a 28.3% increase compared to spending over the previous three years, according to The National newspaper.

The allocations are distributed over three years, with 90.1 billion dirhams allocated for the first year, 2027, while the remaining allocations are distributed across 2028 and 2029 as part of a medium-term spending plan instead of independent annual budgets.

The budget gives a clear priority to social development, setting aside 38.4% of appropriations, or about 34.6 billion dirhams, for social development and social benefits. In contrast, about 3.4% of the budget, or 3 billion dirhams, is allocated to infrastructure and economic resources.

The new budget reflects the federal government's orientation toward expanding spending over the medium term to support social services and infrastructure, at a time when development projects in the UAE are accelerating and the region is competing to attract capital and investments.

What do these terms mean?

Federal Budget: An annual financial plan approved by the central government that covers its revenues and expenditures, specifying what it will spend on services and projects during a set period.

Social Spending: A portion of the budget directed toward social benefits and services, such as education, healthcare, and social support for families.

Infrastructure: The basic facilities supporting economic life, such as roads, ports, and power and water networks.

UAE Dirham: The official currency of the United Arab Emirates, pegged to the US Dollar at a fixed rate of approximately 3.6725 dirhams.