Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, has chaired a Cabinet meeting at Qasr Al Watan in Abu Dhabi where the federal budget for 2026 was approved.
The meeting was attended by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court; Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence; Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance; Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister, and Minister of the Interior.
Record Federal Budget approved by UAE Cabinet
The Cabinet approved the Federal General Budget and the budgets of independent entities for the fiscal year 2026, with estimated expenditures of AED92.4 billion and estimated revenues of AED92.4 billion. This represents the largest federal budget since the founding of the Union.
“I chaired todayโs meeting of the UAE Cabinet at Qasr Al Watan in Abu Dhabi. During the session, we approved the Federal Budget for 2026, with projected revenues of AED92.4 billion and equally balanced expenditures. The 2026 Federal Budget is the largest since the founding of the Union. It strengthens the federal framework and reaffirms our continued commitment to balanced development. The Cabinet also approved the establishment of a Federal Financial Support Programme, which will be reinforced annually through dedicated allocations from the federal budget, ensuring the financial sustainability and institutional resilience of federal entities,” Sheikh Mohammed said in a statement.
“Our budgets remain balanced, our investments continue to grow, our foreign trade gains momentum, and our economy advances with confidence and stability under the leadership of Sheikh Mohamed bin Zayed, who continues to guide our nation from strength to strength, towards greater prosperity, stability, and a dignified life for its people and all who call the UAE home,” he added.
The 2026 budget scored a 29 per cent increase in both estimated expenditures and revenues compared to those of 2025, reflecting the strength of the national economy and the sustainability of financial resources to fund development, economic, and social projects. The 2025 budget stood at AED71.5 billion.
Budget allocation by sector
The budget is distributed across several sectors, in line with the national priorities and the objectives of “We the UAE 2031” Vision.
AED34.6 billion has been allocated for the social development and pensions sector, accounting for 37 per cent of the total federal budget. This includes 19 per cent for public and university education programmes, 6 per cent for pensions, 6 per cent for healthcare, 4 per cent for social affairs, and 2 per cent for public services.
AED27.1 billion has been allocated for government affairs, representing 29 per cent of the total. AED15.4 billion has been allocated for financial investments, accounting for 17 per cent of the budget. AED12.7 billion has been allocated for federal expenses, representing 14 per cent of the budget. AED2.6 billion, or 3 per cent, has been allocated to the infrastructure and economic development sectors.
The Cabinet also approved the establishment of a Federal Financial Support Programme, which will be reinforced annually through dedicated allocations from the federal budget, ensuring the financial sustainability and institutional resilience of federal entities.
UAE outbound investment reaches AED1.05 trillion
The Cabinet reviewed the results of the National Agenda for Outbound Direct Investment for 2024, which showed that the UAE’s cumulative outbound investments reached AED1.05 trillion, recording a 9 per cent growth compared to the previous year.
“The UAE ranks first in the Arab world and among the top 20 global economies in outbound foreign direct investment,” Sheikh Mohammed bin Rashid Al Maktoum said.
The outcomes of implementing the National Agenda for Outbound Direct Investment 2024 showed that the cumulative balance of outbound FDI reached AED1.05 trillion by the end of 2024, and grew by 9 per cent compared to 2023. Outbound FDI flows from the UAE to global markets totalled AED86 billion, marking a 4.8 per cent increase from 2023.
The UAE ranked among the world’s top 20 outbound investors, ranked first in the Arab world, scoring 38.4 per cent of total Arab outbound flows, first in West Asia by 35.1 per cent of total regional flows, and first in the Middle East and North Africa region by 35 per cent of total regional flows.
Non-oil exports surge 103%
The Cabinet reviewed the results of the UAE Export Development Policy, which rose from AED470 billion in 2019 to AED950 billion in 2024, marking a 103 per cent increase.
The outcomes of implementing the UAE Export Development Policy showed that the total value of non-oil trade between the UAE and the target countries increased from AED469.3 billion in 2019 to AED952.6 billion in 2024, a rise of 103 per cent. The value of total exports increased from AED40.1 billion in 2019 to AED139.3 billion in 2024, which is 247 per cent.
Comprehensive Economic Partnership Agreements (CEPAs) signed with several countries have supported this growth by expanding market access, facilitating trade and investment, and enhancing value chains, strengthening the UAE’s position as a leading global trade hub.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance stated that the 2026 federal budget represents a “paradigm shift” in government work, reflecting confidence in the national economy and its ability to achieve progress across various sectors.
“The distribution of expenditure across education, healthcare, infrastructure, and community services underscores the UAEโs dedication to establishing a balanced development model that ensures economic and social stability. The budget reflects the โWe the UAE 2031โ vision, which seeks to build a diversified and resilient economy, responsive to global changes and focused on investing in people as the cornerstone of development,” Sheikh Maktoum said.
“This significant leap in the federal budget reiterates that the UAE is steadily moving forward, enhancing its financial preparedness and intensifying efforts to develop a more prosperous and cohesive society. The new budget will bolster the nationโs position as a global hub for sustainable development while safeguarding long-term financial stability,” he added.
The 2026 budget falls under the umbrella of the 2022โ2026 Federal General Budget Plan, amounting to AED347 billion.
UAE Ministry of Finance highlights fiscal policies
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the approval of the 2026 budget on this scale is a testament to the success of the UAE’s fiscal policies over the past years, and its ability to balance the goals of financial sustainability with the developmental needs of the nation.
“The new budget prioritises directing resources towards sectors that have a direct impact on peopleโs lives, including health, education, infrastructure, and social services, thereby strengthening the UAEโs competitiveness and consolidating its position as one of the most stable and fastest-growing economies regionally and globally,” Al Hussaini said.
Environmental and food safety initiatives
As part of the UAE’s efforts to conserve natural resources, the Cabinet approved the National Guideline for Assessing the Economic Value of Groundwater in the UAE.
The guideline aims to preserve national groundwater reserves, reduce consumption, and ensure water security for future generations. It supports the goals of the National Water and Energy Demand Management Programme 2050, the UAE Water Security Strategy, the National Food Security Strategy 2051, and the UAE Green Development Strategy.
The Cabinet approved the issuance of the UAE Biennial Transparency Report (BTR) on greenhouse gas emissions, which highlights national efforts to mitigate and adapt to climate change, in line with the Paris Agreement.
The report outlines progress achieved on implementing the Nationally Determined Contributions (NDCs) in climate action, including data on emissions inventories, mitigation actions, and adaptation measures, and improvement plans.
The Cabinet reviewed the National Food Safety Committee’s 2024 Annual Report, which included the formation of a national team to review and evaluate food safety legislation to reinforce compliance to food safety requirements, the launch of the strategic project “Food Control System Assessment in the UAE” in cooperation with the Food and Agriculture Organization (FAO), and the development of a unified national approach to food risk assessment.
The report also highlighted the launch of a national training plan for food establishment employees to enhance competencies and ensure compliance with food safety standards.
Health council and social support reforms
The UAE Cabinet approved the reformation of the Health Council, chaired by Ahmed bin Ali Al Sayegh, Minister of Health and Prevention, with the membership of senior representatives from federal and local health authorities, as well as the private healthcare sector. The Cabinet also approved the reformation of the National Committee for Public Health, chaired by Ahmed bin Ali Al Sayegh.
The Cabinet approved a decision to update federal legislation related to social support and empowerment, aimed at strengthening shared social responsibility, enabling beneficiaries to join labour market, and promoting their economic independence.
The updated legislation also ensures social protection is offered to the most vulnerable segments of the community, and that assistance is provided to low-income Emirati families to meet their living needs and secure a dignified life.
Financial regulations and international agreements
The Cabinet also approved the issuance of a resolution regarding excise goods and taxes, and the executive regulations of the Federal Decree-Law on Anti-Money Laundering and Combating Financing of Terrorism, and Weapon Proliferation Financing.
In international affairs, the Cabinet approved the ratification of several agreements, including an air transport agreement with the State of Qatar and a cooperation agreement with the Republic of Tunisia.
It also approved negotiations and the signing of more than 30 additional agreements and memoranda of understanding with several countries in various fields, including double taxation, nuclear regulation, the establishment of joint business councils, cultural and media cooperation, and public finance management.
The Cabinet approved 35 international agreements and memoranda of understanding in various areas of economic and development cooperation.
Other UAE Cabinet decisions
The Cabinet reviewed the Securities and Commodities Authority’s annual report, as well as the Federal National Council’s recommendations on the Government’s Policy on the Management and Sustainability of Waqf (Endowments) and Zakat Funds.
It also approved the updated guidebook on the Accounting Standards in the Federal Government, ensuring alignment with International Public Sector Accounting Standards (IPSAS), and reviewed the outcomes of the UAE’s participation in various international conferences and events.
The Cabinet also approved the UAE’s hosting of the International Conference on Artificial Intelligence for Cybersecurity and the Second National Conference of Medical Colleges.
The General Budget Plan 2026 aims to empower federal entities to utilise their approved allocations and implement their objectives and programmes in line with strategic plans, thereby delivering outcomes across the country’s economic, social, environmental, service, and competitiveness sectors.
The UAE’s General Budget Committee had held its 14th meeting to discuss the draft general budget of the UAE for the fiscal year 2026. The meeting was attended by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court; and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.
The meeting was also attended by His Excellency Mohamed bin Hadi Al Hussaini; HE Khaled Mohamed Balama Al Tameemi, Governor of the Central Bank of the UAE (CBUAE), in addition to representatives of the Presidential Court and the Ministry of Finance.
The federal budget takes into account the latest developments and measures implemented by the Ministry of Finance in line with Federal Decree-Law No. (26) of 2019 on Public Finance, its amendments, and related resolutions and recommendations.
