A total of AED3.5bn ($953m) will be spent on projects next year by the UAE’s federal government based on its budget for 2018.

The Ministry of Finance has raised a draft federal budget to the UAE cabinet of AED51.4bn for 2018, which is a 5.6 per cent increase on the budget for 2017.

The largest recipient of project spending will be housing, for which the Sheikh Zayed Housing Programme has been allocated AED1.443bn for 2018. The two other area of focus will be power and water, for which the Federal Water and Electricity Authority (Fewa) has been allocated AED922m, and infrastructure, for which the Ministry of Infrastructure Development will be given AED483m.

Project spending is a small part of the budget. The largest budget item is social development programmes and social benefits, which have been allocated AED26.3bn or about 43.5 per cent of the total budget. This include education spending.

The government sector was allocated AED22.5bn, which is 36.5 per cent of the total budget, and includes maintaining foreign relations and the judiciary.

Some AED2bn has been allocated to supporting government innovation, through the launch of the Sheikh Mohammed Bin Rashid al-Maktoum Innovation Fund. It will provide financing solutions and support for innovators to turn their ideas into projects.