UAE Approves Record Budget for 2026

The United Arab Emirates Cabinet has approved a landmark federal budget for the fiscal year 2026, setting revenues at approximately Dh92.4 billion (US$25.2 billion) and matching expenditures to maintain a balanced fiscal plan.

The jump in budget size represents a nearly 30 per cent increase over the 2025 budget, which stood at Dh71.5 billion. With this record-breaking allocation, the UAE is signalling a renewed emphasis on “balanced development” — one that aims to bolster economic expansion, social welfare and infrastructure in parallel.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai, emphasised that this budget is designed to “consolidate the federal system and reflect our ongoing commitment to balanced development”.

He highlighted the importance of ensuring the financial sustainability of the federal state’s institutions and launched a new programme channeling annual allocations from the federal budget to the Federal Financial Centre.

On the economic front, the budget reflects the UAE’s robust outward foreign investment performance: the country’s cumulative outward foreign investment balance in 2024 reached Dh1.5 trillion, a year-on-year increase of 9 per cent, placing the UAE among the top global economies in terms of outward flows. Exports, too, have more than doubled from 2019 to 2024, reaching approximately Dh950 billion—signifying the success of the UAE’s export-development policies. 

Growth projections remain positive: the International Monetary Fund projects the UAE economy will expand by 4.8 per cent in 2025, with growth expected to accelerate to 5 per cent in 2026. Non-hydrocarbon sectors are driving this growth trend. 

Social development remains a key pillar: a substantial portion of the budget will continue to support health, education, housing, and other welfare services—all aimed at improving quality of life and enabling sustainable growth across all segments of society.