The UAE Cabinet has approved a federal budget of AED92.4 billion for 2026, marking the largest budget in the country’s history since the establishment of the Union. The decision, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, reflects the UAE’s commitment to balanced and sustainable development amid strong economic performance.
The approval came during a cabinet meeting held at Qasr Al Watan in Abu Dhabi on October 27, 2025. Both revenues and expenditures are estimated at AED92.4 billion, demonstrating the government’s fiscal discipline.
Sheikh Mohammed bin Rashid Al Maktoum stated:
“The 2026 federal budget is the largest since the establishment of the Union.. a budget that strengthens the federal system and reflects our continued commitment to balanced and sustainable development.”
The Cabinet also approved the establishment of a dedicated programme to support and reinforce the Federal Financial Centre through annual allocations. This initiative aims to ensure long-term financial sustainability of federal institutions, strengthening the infrastructure that underpins the nation’s governance.
The record budget comes as the UAE continues to demonstrate robust economic expansion. During the same meeting, the Cabinet reviewed the results of the 2024 National Agenda for Outward Foreign Direct Investment, revealing that the country’s cumulative foreign investment abroad reached AED1.05 trillion, representing a 9 per cent increase from the previous year.
This achievement positions the UAE as the leading nation in the Arab world and among the top 20 global economies in outward foreign direct investment. Regional development initiatives continue to accelerate across the Gulf, reflecting broader economic transformation.
Sheikh Mohammed highlighted the momentum:
“Our investments continue to grow, our trade is accelerating, and our economy is moving steadily forward.”
Exports have emerged as a significant driver of economic growth. The Cabinet reviewed progress on the UAE’s export development policy, which showed exports rising from approximately AED470 billion in 2019 to AED950 billion in 2024—a remarkable increase of 103 per cent over five years.
During the meeting, the Cabinet also approved 35 international agreements and memoranda of understanding across economy and cooperation sectors, further solidifying the UAE’s position as a regional and global trade hub.
Sheikh Mohammed concluded his remarks by emphasizing the nation’s forward momentum under the leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan:
“Our budgets are balanced, our investments are growing, and our nation continues to advance in prosperity and stability under the leadership of my brother, His Highness Sheikh Mohamed bin Zayed Al Nahyan. Together, we continue to move from one peak to another, ensuring a dignified life for our people and all who call the UAE home.”
The 2026 budget reflects the UAE’s strategic focus on fiscal responsibility, economic diversification, and sustained growth. With a balanced budget structure and expanded allocations for federal institutions, the government is positioning itself to navigate future economic challenges while capitalizing on emerging opportunities in trade and investment.
