UAE Unveils Strategic 2027–29 Budget Cycle to Future‑Proof Governance
The announcement coincided with the introduction of the federal strategic planning cycle dubbed “Towards Achieving We the UAE 2031”, part of a broader effort to integrate planning and policymaking across government entities. This alignment marks a shift away from annual budgeting toward multi‑year strategic forecasts, reflecting a proactive and flexible governance model.
The new cycle builds on four earlier strategic periods, in which the federal budget totalled roughly AED 900 billion—equivalent to about US$245 billion—while public debt remained controlled at AED 62.1 billion as of June 2025. By the end of 2024, federal government assets had climbed to approximately AED 464.4 billion. These financial metrics underscore a solid fiscal foundation supporting more ambitious planning frameworks.
Sheikh Maktoum highlighted that achieving the objectives of the UAE Centennial 2071 demands an “agile, future‑focused” financial architecture that can respond to global shifts and redirect spending to high‑impact areas. He outlined plans to deploy advanced analytical models and ‘smart tools’ grounded in data and artificial intelligence, with the aim of optimising efficiency, improving resource allocation and delivering higher quality government services.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, added that the budget cycle redesign extends beyond digitalisation, representing a complete overhaul of processes. He cited reductions in preparation steps—from 50 to 10—and a dramatic shortening of procurement timelines—from 60 days to under six minutes. These reforms are part of a transition that recasts the Ministry of Finance from a supervising body to an enabling force for federal agencies operating within a unified digital infrastructure.
Priority areas for this budget include education, healthcare, social welfare and foundational government services—reflecting an emphasis on citizen well‑being and sustainable national development. AI integration and performance-based methodologies are central to predicting outcomes, managing risks and ensuring transparent delivery of public services.
Analysts have remarked on the strategic significance of these reforms. Vijay Valecha, Chief Investment Officer at Century Financial, told Khaleej Times that the smarter investment approach supports the drive to expand the UAE’s GDP to around Dh3 trillion within the next decade, enhancing economic resilience and global competitiveness.
Long-standing legislative and digital reforms have underpinned the shift. The Ministry has enhanced regulatory frameworks, fostered international partnerships and implemented unified digital financial systems. This has enabled the alignment of planning cycles with national visions and set performance benchmarks tied to service quality and economic outcomes.
A key innovation is the use of AI-enabled predictive scenarios, which offer federal entities a robust planning toolkit. These tools will support scenario modelling, resource reallocation and rapid decision-making, particularly in fast-evolving sectors such as technology, healthcare and education.
The strategic planning framework, “We the UAE 2031”, complements the budget cycle by defining national milestones centred on economic diversification, digital transformation and human capital development. Together, they aim to synchronize policy objectives with measurable outcomes across governmental departments.
Financial metrics signal stability. The federal revenue and expenditure framework for 2025 is balanced at Dh 71.5 billion, demonstrating fiscal discipline. Meanwhile, macroeconomic projections from the UAE Central Bank anticipate GDP growth of approximately 4.4 per cent in 2025, increasing to 5.4 per cent in 2026. Non-hydrocarbon GDP is expected to grow 4.5 per cent annually through this period, reinforcing the country’s economic diversification trajectory and providing a solid backdrop for multi-year fiscal planning.
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