The Cabinet also approved the 2027 budget with expenditure of Dh90.1 billion. Main sectors covered by the new federal budget include community protection and safety, the economy of the future, future-orientated education, employment and empowerment, health and quality of life, leadership, government affairs and international relations, the UAE Government Media Office said in a statement.

The budget will also focus on industry, technology, energy, infrastructure, culture, media and sports. “Our priorities remain fixed and unchanged … Education, health, housing, social services, and the quality of life and stability of the citizen,” Sheikh Mohammed said in a post on X.

The UAE last year launched its 2027-2029 budget cycle , focusing on sustainability, artificial intelligence and efficiency. It followed four consecutive cycles during which the total federal budget reached about Dh900 billion ($245 billion), officials said in July last year, adding that the cycle focuses on sectors such as education, health care, social welfare and core government services.

The UAE's economy grew 0.4 per cent annually to Dh961.9 billion in the first half of 2026, driven by non-oil business activity, despite the impact of the Iran war .

The non-oil sector's contribution to the country's gross domestic product during the six-month period increased by 1.8 per cent to 79.2 per cent, the Federal Competitiveness and Statistics Centre said last week.