UAE approves AED 292.5 billion federal budget for 2027 to 2029, up 28.3%

Abu Dhabi: The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved the federal general budget for 2027 to 2029 on 12 October 2026, with total expenditure of AED 292.5 billion, according to the Emirates News Agency (WAM).

That is an increase of 28.3 per cent on federal spending over the previous three years. The budgets approved for 2024, 2025 and 2026 totalled about AED 227.9 billion (AED 64 billion, AED 71.5 billion and AED 92.4 billion respectively, PROPERTY TIMES calculation).

Announcing the budget, Sheikh Mohammed said the government’s direction is unchanged: “Our priorities are fixed and have not changed: education, health, housing, social services”, as reported by WAM. He also named citizens’ quality of life and stability among the priorities.

Where the AED 90.1 billion goes in 2027

The first year of the cycle carries estimated expenditure of AED 90.1 billion. Five main lines make up the total:

• Social Development and Pensions: AED 34.6 billion (38.4 per cent)
• Government Affairs: AED 29.1 billion (32.3 per cent)
• Federal Expenses: AED 17.8 billion (19.7 per cent)
• Financial Assets and Financial Investments: AED 5.6 billion (6.2 per cent)
• Infrastructure and Economic Resources: AED 3 billion (3.4 per cent)

Social development and pensions remains the largest component, held at the same AED 34.6 billion allocated in 2026. Government affairs rises to AED 29.1 billion from AED 27.1 billion in 2026, federal expenses to AED 17.8 billion from AED 12.7 billion, and the infrastructure and economic line to AED 3 billion from AED 2.6 billion, based on the 2026 figures published by the Dubai Media Office.

A three-year plan with room to grow

Because AED 90.1 billion is allocated to 2027, the plan implies combined spending of about AED 202.4 billion across 2028 and 2029, or roughly AED 101 billion a year on average (PROPERTY TIMES calculation). Year-by-year figures for 2028 and 2029 will be confirmed in each annual budget.

According to WAM, the budget covers sectors including community protection and safety, the future economy, future-oriented education, employment and empowerment, health and quality of life, international relations, and industry, technology, energy, infrastructure, culture, media and sport. The Ministry of Finance opened the 2027 to 2029 cycle earlier this year with a focus on long-term financial planning and efficient use of resources.

What it means for housing and real estate

Housing sits on the Prime Minister’s short list of fixed priorities. The federal budget does not publish a separate housing line; federal housing support for Emirati citizens is delivered mainly through the Sheikh Zayed Housing Programme, which reports its own figures.

In 2025 the programme issued 3,567 housing decisions worth AED 2.546 billion, covering grants, government housing loans and bank financing for citizens. It followed with 759 approvals worth more than AED 616 million in the first quarter of 2026, and has issued more than 73,000 housing support decisions worth over AED 50 billion since it was set up in 1999.

For the property market, the budget points to three things. Steady federal funding for social development and housing support sustains demand for family homes and new citizen communities. The infrastructure and economic resources line, together with sector spending on energy and technology, supports the roads, utilities and services that new communities depend on. And a three-year envelope gives developers, contractors and lenders a clearer view of public-sector priorities to plan around.