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Why record $ 29bn Dubai 2026 budget can cause migration of global wealth

Dubai and the UAE have rushed to record public spending by 2026, marking a decisive shift in long-term infrastructure development, improved quality of life and economic resilience.

The moves come as global investors and families are increasingly exploring traditional areas that allow for stable, high-growth.

In November 2025, the Dubai government announced the largest budget in the city’s history, with revenues of AED107.7bn ($29.3bn) in 2026 and AED99.5bn ($27.1bn) in spending.

Budget strategies for Dubai

Between 45 and 48 percent of the budget will support infrastructure and construction, while about 28 percent is directed to community development including schools, hospitals, housing and public services.

Similar to this, the UAE Federal Government committed to AED92.4bn ($25.1bn) by 2026 – a 29 percent increase compared to previous spending on education, health care, pensions and social protection.

Together, these financial decisions mark strategic fluctuations in addition to short-term growth cycles. They reflect the intention to build long-term capacity for population growth, increase living standards and strengthen economic stability.

The difference is particularly pronounced when compared to the UK’s fiscal policy, where tax increases, regulatory changes and rising financial pressures are changing the decisions of affluent and mobile households.

Rising tax burdens in the UK – including higher property tax, building tax and household savings levy

Against this background, Dubai’s stable financial position, zero-income-tax policy and increased investment in social infrastructure attract capital, entrepreneurs and families.

Global wealth migration

Simon Baker, founder and managing director of Haus & Haus, said: “This is the clearest sign yet that Dubai is preparing for long-term families, and that needs to attract the most important families in the property market.”

Phadeli director Paul Sharland said: “We are seeing a new client profile – business owners from the UK and Europe who can invest; they are moving their companies, their children and their future here.

“They want stability, world-class schools and a place where they can plan for the future. Dubai offers exactly that.”

This change is seen not only in the flow of capital but in lifestyle choices. Buyers are increasingly looking for long-term residences and family-friendly communities – a trend that is more systematic than speculative.

According to the Dubai Land Department and market analysts, property transactions above AED10m ($2.7m) have reached 5,978 so far in 2025, an increase of 40 percent compared to the same period in 2024.

Needs strengthening across Premium Waterfront, urban and mixed-use developments, while mid-rise and family-oriented communities have reported higher inquiries and sales.

Industry sources note that the trend is not limited to the Ultra-Luxury segment: Mid-range rooms, villas and long-term rentals are also getting families and coaches to stay longer.

Architectural perspective

As Baker explains: “Real Estate is no longer just a lifestyle choice. It’s part of a new wealth creation, a hedge that combines money protection, travel and estate planning.”

Dubai’s high global safety rankings are an important factor in relocation decisions. With low farming rates and safe public spaces, the emirate offers the level of predictability and daily stability that European and UK families expect.

The combination of public charging, the migration of continuous wealth and the awakening of the real estate sector and finding a place for Dubai’s long-term growth – not only as a tax-efficient way, but as a way of revitalizing the world that offers sustainability, opportunity and lifestyle benefits.

Infrastructure development strengthens communication and public services. Expanded education and health spending support growing families.

Demand for housing continues to rise as more people relocate businesses and families. Luxury and Mid-Market Real Estate are emerging as key tools for wealth preservation and future planning.

For global mobile investors and high-value families, the message is clear: Dubai is no longer a niche alternative. It is fast becoming the default destination for long-term security, sustainability and value creation.

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