UAE Makes Global History: AI Now Drafts Nation’s Multi-Billion Dollar Budget
Abu Dhabi, UAE – In a move that redefines public finance and sets a global precedent, the United Arab Emirates has officially integrated Artificial Intelligence (AI) into the readiness of its federal budget.This groundbreaking initiative, moving beyond traditional estimations and intuitive decision-making, marks a notable conceptual shift towards data-driven governance and financial anticipation.
The UAE Ministry of Finance, after a accomplished experimental phase with the 2024 budget, has now fully embraced AI for the 2025 budget cycle and launched the aspiring “Smart Budget Course 2027-2029.” This pioneering federal program, the frist of its kind worldwide, is entirely powered by AI and predictive analytics. The four-year budget, valued at approximately $245 billion, will leverage elegant algorithms for resource allocation, performance evaluation, and ensuring alignment with the nation’s strategic priorities.
This transformative leap was underscored by the Ministry’s association of the “National financial Intelligence Forum” in May 2025. The forum convened to forge an integrated plan across six critical axes: the future vision of government finance, smart operations, data governance, infrastructure, capacity building, and the Ministry’s role as a future-oriented institution. The Ministry emphasized that this deep integration of AI aims not only to expedite procedures but to fundamentally reshape the culture of financial decision-making across the government.
Tangible Results: Efficiency soars,Delays Vanish
The impact of AI adoption is already evident. The Ministry of Finance reports that during the experimental stage, AI contributed to a remarkable 20% improvement in resource allocation efficiency. Furthermore, the gap between estimated and actual budget implementation has been reduced by 12%.The speed of financial operations has also seen dramatic acceleration. Budget preparation procedures have been fast-tracked by 30%, and the time required for financial decision-making in some government agencies has been slashed from weeks to mere days. Looking ahead, the UAE anticipates a further streamlining of the budget preparation process, reducing the number of steps from 50 to just 10. Similarly, the government procurement cycle is expected to shrink from 60 days to under 6 minutes.
Citizen-Centric Finance and Unprecedented Transparency
Beyond operational efficiencies, the UAE’s AI-driven budget offers enhanced transparency and accountability. The system analyzes citizen demand for services and benchmarks it against the actual performance of government entities, directly linking budget allocation to tangible results. This approach fosters a more responsive and transparent government.
The integration of AI is further bolstered by the “Emirates Data” system, a sophisticated government database fed with data from over 30 federal entities, recognized as one of the most advanced in the region.
Global Recognition and Future-Proofing
The Ministry of Finance’s pioneering work has garnered international acclaim, evidenced by its win of the “Innovating for Impact” award at the AI FOR SUMMIT 2025 in Geneva. This recognition solidifies the UAE’s leadership in leveraging AI for financial policy advancement.
Acknowledging the inherent challenges, the UAE is proactively addressing the need for algorithmic neutrality and enhancing human expertise in data analysis and predictive tool utilization. Initiatives like “Government Programmer” and “AI for all” are actively underway to upskill government cadres.Concurrently,the nation is collaborating with the Organisation for Economic Co-operation and Growth (OECD) to develop robust national data governance legislation.
A Bold Vision for Financial Management
the UAE’s bold embrace of AI in the critical process of budget preparation signifies more than a technical upgrade; it represents a cultural paradigm shift. It moves government financial management from a logic of estimation to one of anticipation, and from bureaucracy to agility.
The UAE’s experience in integrating AI into its public budget serves as a pioneering model for Arab nations and the global community. This adoption signals a profound commitment to creating more efficient, reality-aligned, and responsive public policies capable of swiftly addressing evolving challenges.
Jaber Al-Shuaibi is an Emirati writer and researcher.**
