Maktoum Bin Mohammed Emphasises Importance Of 2026 Federal Budget For UAE's Economic Growth

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Minister of Finance, highlighted the 2026 federal budget as a transformative step in government operations. This budget reflects strong confidence in the UAE's economy and its capacity to progress across various sectors. The increased expenditure aligns with leadership directives to invest in crucial areas impacting citizens' lives and supporting sustainable development.

The UAE Cabinet, led by H.H. Sheikh Mohammed bin Rashid Al Maktoum, approved the 2026 Federal Budget Plan, amounting to AED 92.4 billion. This represents a 29% increase from the previous year's AED 71.5 billion. The budget's distribution across education, healthcare, infrastructure, and community services underscores the UAE's commitment to balanced development for economic and social stability.

The budget allocation reflects the 'We the UAE 2031' vision, aiming for a diversified economy responsive to global changes. Investing in people is central to this vision. H.H. Sheikh Maktoum stated that this significant budget increase demonstrates the UAE's steady progress in enhancing financial readiness and fostering a prosperous society.

The 2026 budget is the largest in UAE history, showcasing economic strength and commitment to sustainable development. It falls under the 2022–2026 Federal General Budget Plan, totaling AED347 billion. The budget considers recent developments and measures by the Ministry of Finance per Federal Decree-Law No. (26) of 2019 on Public Finance.

AED34.6 billion is allocated to social development and pensions, making up 37% of the general budget. This includes allocations for public education (19%), pensions (6%), healthcare (6%), social affairs (4%), and public services (2%). Government affairs receive AED27.1 billion or 29% of the total budget.

Financial investments are allocated AED15.4 billion (17%), federal expenses receive AED12.7 billion (14%), and infrastructure and economic development get AED2.6 billion (3%). These allocations align with 'We the UAE 2031' goals to improve life quality for all citizens.

Commitment to Financial Stability

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, remarked: "The approval of the 2026 budget on this historic scale is a testament to the success of the UAE’s prudent fiscal policies over the past years, and its ability to balance the goals of financial sustainability with the growing developmental needs of the nation."

Al Hussaini further noted that prioritising resources towards health, education, infrastructure, and social services strengthens UAE's competitiveness globally. The General Budget Plan aims to empower federal entities to use their allocations effectively according to strategic plans.

Collaborative Efforts in Budget Planning

The UAE’s General Budget Committee held its 14th meeting discussing the draft general budget for fiscal year 2026. Attendees included H.H. Sheikh Mansour bin Zayed Al Nahyan; H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum; Mohamed bin Hadi Al Hussaini; Khaled Mohamed Balama Al Tameemi from CBUAE; representatives from Presidential Court; and Ministry of Finance officials.

The meeting addressed aspects related to preparing the federal general budget as part of ongoing efforts by Ministry of Finance coordinating with federal entities under the 2022–2026 plan.

This comprehensive approach ensures positive outcomes across economic, social, environmental service sectors while maintaining competitiveness regionally and globally.

With inputs from WAM