UAE Approves $25 Billion Federal Budget for 2026
The United Arab Emirates (UAE) has approved its federal budget for 2026, projecting both revenues and expenditures at $25.16 billion (AED 92.4 billion). The decision was made on Monday by Sheikh Mohammed bin Rashid Al Maktoum, the UAE’s Vice President, Prime Minister, and Ruler of Dubai, during a cabinet meeting held at Qasr Al Watan in Abu Dhabi, according to the Emirates News Agency (WAM).
Balanced Budget with Major Growth
The 2026 federal budget aims to maintain a balance between revenues and expenditures. Both are expected to rise by 29% compared to the 2025 budget. This marks one of the strongest financial plans in the UAE’s history, reflecting the country’s growing economy and sound financial management.
Out of the total budget, the largest share—$9.42 billion (AED 34.6 billion)—will go toward social development and pensions, representing 37% of total spending. This includes investments in education, healthcare, and social welfare programs to support citizens’ well-being.
Government affairs will receive $7.38 billion (AED 27.1 billion), while $4.2 billion (AED 15.4 billion) is allocated for financial investments to strengthen the country’s fiscal stability.
Federal expenses are estimated at $3.46 billion (AED 12.7 billion), and $708 million (AED 2.6 billion) has been set aside for infrastructure and economic development projects. These funds will help improve transportation, housing, and other essential public services.
New National Initiatives
During the meeting, the UAE cabinet approved several key initiatives aimed at sustainable growth and resource management. These include the National Guideline for Assessing the Economic Value of Groundwater, which will help manage water resources efficiently, and the UAE Biennial Transparency Report (BTR) on greenhouse gas emissions, highlighting the country’s commitment to climate goals.
Additionally, the cabinet approved reforms to the Health Council to improve healthcare coordination and performance across the nation.
Strong Investment Growth
The UAE’s foreign investment activities continue to show strong momentum. By the end of last year, the country’s outbound foreign direct investment (FDI) reached $285.9 billion (AED 1.05 trillion), up 9% from 2023. Outbound FDI flows to international markets totaled $23.42 billion (AED 86 billion), showing a 4.8% increase compared to the previous year.
These numbers underline the UAE’s growing role as a global investor and its focus on diversifying income sources beyond oil.
Largest Budget Since the Union’s Founding
Sheikh Mohammed bin Rashid described the 2026 budget as the largest since the establishment of the UAE, emphasizing that it supports balanced national development and strengthens the federal system.
“Our budgets remain balanced, our investments continue to grow, our foreign trade gains momentum, and our economy advances with confidence and stability,” he said.
To further support development, the cabinet also approved the creation of a Federal Financial Support Program, which will receive annual funding from the federal budget. This initiative aims to ensure financial stability and sustainable growth across the UAE.
With the approval of the 2026 budget, the UAE reaffirms its vision for a strong, diversified, and sustainable economy—one that continues to support citizens, attract global investors, and strengthen the country’s position as a leading financial hub.
Published: 29th October 2025
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