Background: Egypt was identified by The International Diabetes Federation (IDF) as the ninth leading country in the world for the number of patients with T2D. The prevalence of T2D in Egypt was almost tripled over the last 2 decades. This sharp rise could be attributed to either an increased pattern of the Traditional risk factors for T2D such as obesity and physical inactivity and change in eating pattern or other risk factors unique to Egypt. T due to previous facts the economic burden of T2D was increased by triple in short time and it may make a barrier for the payer towards enhancement of treatment polices. The objective for thus study is to evaluate impact of adding Dapaglifloxin to national formulary on burden of T2D and patient’s outcomes. Methods: The Cardiff Diabetes Model was designed to evaluate the cost-effectiveness & budget impact for patients treated with metformin plus sulphonyl urea, VS Dapagliflozin plus metformin. Each simulated subject is progressed through the model in 6-monthly time increments, randomized checks are made for both fatal and non-fatal events: micro vascular, macro vascular, hypoglycemia, adverse events and all-cause mortality. Costs and utility decrements may be applied to each of these events. Macro vascular complications: Ischemic heart disease (IHD), myocardial infarction (MI), second MI, congestive heart failure (CHF), stroke and second stroke calcualted Microvascular complications: Amputation, second amputation, nephropathy, blindness and ulcer calculated. Results: During life time horizon total cumulative QALY gained for Dapagliflozin was (1,160,524.8) QALY VS (1,159,165.) QALY for sulphonyl urea and 33.9% of the budget will be saved if Dapagliflozin was totally reimbursed. Conclusion: Dapagliflozin may reduce economic burden of T2DM with enhancement on patient’s outcomes.