Government accepts budget plan featuring significant new borrowing
The United Arab Emirates (UAE) has initiated its 2027-2029 federal budget cycle with a total value of approximately AED 900 billion (around $245 billion). This medium-term financial planning, which focuses on sustainability, artificial intelligence, efficiency, and fiscal sustainability, marks a shift from yearly budgeting to a strategic financial instrument to support federal entities.
The cycle emphasizes enhanced public financial management through improved legislative frameworks, international partnerships, and advanced digital systems. As of mid-2025, public debt stood at AED 62.1 billion, with federal assets at around AED 464.4 billion, reflecting robust fiscal health supporting this medium-term outlook.
Details on predicted expenses and specific financing gaps for 2027-2029 have not been explicitly broken down in the search results. However, the emphasis is on ensuring financial efficiency and data-driven decision-making to optimize budget impact aligned with national development goals. The UAE Ministry of Finance is investing in smart analytical tools to manage this cycle, implying a focus on balancing expenditure with available resources to minimize financing gaps.
The 2026 federal budget draft was approved by the Federal Cabinet on Wednesday. The draft budget foresees a new debt of 89.9 billion euros and total expenses of around 520.5 billion euros. An additional 84.4 billion euros from special assets are planned in the 2026 budget. By the year 2029, expenses are planned to increase to 572.1 billion euros.
The first debate on the 2026 budget in the Bundestag is scheduled for September. No new information about the schedule for the budget debates has been revealed. However, it is known that the decision on the 2026 budget in parliament is planned for November.
A budget gap of around 172 billion euros remains in the financial planning for the years 2027 to 2029. Despite the gap, the comprehensive AED 900 billion budget cycle suggests substantial federal expenditures but also a strong asset and debt position to manage any gaps effectively.
In summary, the UAE's 2027-2029 federal budget cycle aims to promote sustainability, AI, efficiency, and fiscal sustainability. The cycle emphasizes strategic budget use with analytical tools for financial efficiency. Specific predicted expenses breakdown and financing gaps are not detailed in current public sources, but official UAE Ministry of Finance publications or budget documents released closer to 2026 year-end might provide detailed forecasts.
- The UAE's focus on data-driven decision-making and investment in smart analytical tools for managing the 2027-2029 federal budget cycle demonstrates an intention to minimize financing gaps in business operations and ensure financial efficiency in politics and economics.
- Despite a predicted budget gap in the 2027-2029 financial planning, the UAE's comprehensive budget cycle indicates substantial federal expenditures, strong asset and debt positions, and a commitment to national development goals, particularly in the areas of sustainability, artificial intelligence, and efficiency.
