Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved Law No. 15 of 2025 regarding the Government of Dubai‘s budget cycle for the fiscal years 2026-2028.
The three-year budget cycle has been approved with total expenditure of AED302.7 billion and total revenues of AED329.2 billion.
This budget cycle represents the largest in the emirate’s history.
Record three-year budget cycle approved under Law No. 15 of 2025
The Department of Finance (DOF) expects to achieve an operating surplus of up to 5 per cent of the emirate’s projected GDP for 2026 during implementation of the 2026-2028 cycle, thereby solidifying long-term fiscal sustainability.
“Dubai’s general budget cycle for 2026–2028 provides a financial roadmap that accelerates Dubai’s ambitions to enhance the growth of its key sectors and solidify its position as a global economic centre,” Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai said in a statement.
“This budget reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to advance the emirate’s strategic objectives, most notably doubling Dubai’s GDP and positioning it among the world’s top three urban economies within the next decade, while maintaining a balanced approach between ambitious growth and economic stability, supported by prudent fiscal policies
“The budget reinforces our commitment to future-focused sectors and ushers in a new phase of knowledge-driven, innovation-led growth in the digital economy. It expands opportunities for local entrepreneurship and supports a high-growth environment across all key sectors. The fiscal sustainability and competitiveness reflected in this budget further enhance Dubai’s appeal to global investors and innovators, laying a strong foundation for the emirate to realise its long-term aspirations and build a prosperous future,” he added.
The 2026-2028 financial cycle includes strategic investments in space research, digital transformation, and artificial intelligence, while fostering entrepreneurship and creating a dynamic environment for diverse economic sectors across the emirate.
Infrastructure receives 48% of Dubai’s 2026 budget allocation
The estimated expenditure for the fiscal year 2026 stands at AED99.5 billion, reaffirming Dubai’s commitment to supporting development projects, stimulating macroeconomic growth, and realising the objectives of the Dubai Plan 2033 and the Dubai Economic Agenda D33.
Revenues for 2026 are projected at AED107.7 billion, including general reserves of AED5 billion.
“The 2026 budget aligns with the Dubai Strategic Plan 2033 and the Dubai Economic Agenda D33 and reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum to enhance government support for social development, housing for citizens, government digitisation, scientific research, corporate agility, and global competitiveness,” Abdulrahman Saleh Al Saleh, Director General of DOF said.
Al Saleh noted the commitment to fiscal discipline. “The Dubai Government remains committed to the guidance of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, in adopting disciplined fiscal policies. This approach established an annually funded general reserve, ensuring long-term fiscal sustainability and reinforcing the emirate’s financial resilience against future challenges.”
The 2026 budget reflects the government’s commitment to people-centric development, with 28 per cent of total expenditure allocated to the social development sector.
This covers health, education, scientific research, housing, family welfare, youth, sports, seniors, retirees, and people of determination.
The government allocated 18 per cent of total expenditure to the security, justice, and safety sector, ensuring it remains recognised for its strengths through enhanced preparedness and operational excellence.
Infrastructure investments account for 48 per cent of the total projected government expenditure for the 2026 fiscal year. This includes roads, bridges, tunnels, public transport, sewage systems, parks, renewable energy facilities, waste management, and service buildings.
An additional 6 per cent of total spending is allocated to government development initiatives that support performance enhancement and promote a culture of excellence, innovation, and creativity.
IPSAS implementation positions Dubai as regional leader
“The medium-term financial planning and the announcement of a three-year budget plan reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum,” Aref Abdulrahman Ahli, Executive Director of the Planning & General Budget Sector at DOF said.
“The 2026 fiscal year budget not only meets the requirements of the Dubai Strategic Plan 2033 and beyond, but also showcases the emirate’s stable financial position. This stability is attributed to disciplined financial policies rooted in best practices, which contribute to achieving an operating surplus of 22% of total government revenues, ensuring the desired financial sustainability.
“At DOF, we strive to develop government spending efficiency programmes, and continue to implement the programme and performance budget development plan, which aligns strategic planning with fiscal planning, reaffirming the Dubai government’s commitment to the principles of leadership and transparency. Government entities are playing a key role in ensuring the budget meets global standards, a commitment reflected in top-tier performance results under the international Public Expenditure and Financial Accountability (PEFA) framework,” Ahli added.
Digital transformation and payment systems
“The Department’s sustained initiatives to foster innovation in revenue collection systems are gaining wide recognition. Strengthening transparency remains a core government priority, and the Financial Data Platform plays a key role in this effort by giving government entities, organisations, and individuals access to accurate and timely financial information. This openness supports informed decision-making and enhances the emirate’s overall competitiveness,” Ahmad Ali Meftah, Executive Director of the Central Accounts Sector at DOF explained.
“DOF places strategic importance on advancing the digitalisation of life in Dubai. It continues to implement the Dubai Cashless Strategy, which aims to position the emirate as a global benchmark in reducing reliance on cash and expanding the adoption of secure, smart digital payments. Based on three pillars, Governance, Innovation, and Society, the strategy enhances the efficiency of government financial operations, accelerates the pace of digital transformation, improves transparency, and facilitates access to services. In doing so, it supports the objectives of the Dubai Economic Agenda D33 and reinforces the emirate’s status as a global hub for the digital economy.
“We continue to develop initiatives that support Dubai’s strategic objectives and advance its public finance ecosystem, including the adoption of International Public Sector Accounting Standards (IPSAS). This step positions Dubai among the first governments in the region to implement these global standards, which play a vital role in improving budget execution and enhancing overall government performance,” he added.
Government services integration
“The Sector plays a pivotal role in supporting the Dubai government ecosystem through specialised programmes that boost operational efficiency and enhance services quality. Additionally, the recently launched Dubai Government Unified Contact Centre (UCC) provides a platform that enhances communication with customers and delivers an integrated experience, reflecting seamless collaboration across government entities,” Hamed Abdulghafoor Alawadhi, Executive Director of the Shared Services Sector at DOF said.
“The 2026 Budget supports such efforts by providing the necessary resources to advance technical infrastructure and drive innovation in shared services, contributing to the emirate’s digital transformation goals, elevating spending efficiency, and aligning with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to build a smarter, more agile, and sustainable government,” Al Awadhi concluded.
