UAE Cabinet Approves Historic Federal Budget Of AED 92.4 Billion For Fiscal Year 2026

The UAE Cabinet, led by His Highness Sheikh Mohammed bin Rashid Al Maktoum, convened at Qasr Al Watan in Abu Dhabi. The meeting included key figures such as His Highness Sheikh Mansour bin Zayed Al Nahyan and H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. During the session, they approved the Federal Budget for 2026, projecting revenues and expenditures of AED92.4 billion each.

His Highness Sheikh Mohammed bin Rashid Al Maktoum stated, "I chaired today’s 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."

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The Cabinet also introduced a Federal Financial Support Programme to be funded annually through federal budget allocations. This initiative aims to ensure financial sustainability and institutional resilience for federal entities. The programme will bolster economic stability by providing consistent financial backing to essential sectors.

The meeting reviewed the National Agenda for Outbound Direct Investment for 2024, revealing that UAE's outbound investments reached AED1.05 trillion, a 9% increase from last year. The UAE leads in outbound foreign direct investment within the Arab world and ranks among the top 20 globally.

H.H. added, "During the meeting, we 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."

UAE Export Development Policy

The Cabinet examined outcomes from implementing the UAE Export Development Policy. Non-oil trade with target countries rose from AED470 billion in 2019 to AED950 billion in 2024, marking a 103% increase. Comprehensive Economic Partnership Agreements have facilitated this growth by enhancing market access and trade.

H.H. noted that "the value of total exports increased from AED40.1 billion in 2019 to AED139.3 billion in 2024," reflecting a significant rise due to strategic agreements with various countries.

Budget Allocation and Priorities

The approved budget for 2026 is distributed across key sectors aligned with national priorities under "We the UAE 2031" Vision. Allocations include AED34.6 billion for social development and pensions (37%), AED27.1 billion for government affairs (29%), and other significant investments in infrastructure and economic development.

This budget reflects a substantial increase compared to previous years, showcasing confidence in economic growth and resource sustainability.

Environmental Initiatives

The Cabinet endorsed guidelines assessing groundwater's economic value to conserve resources and ensure future water security. These efforts align with national strategies like Water Security Strategy 2051 and Green Development Strategy.

Additionally, they approved issuing a Biennial Transparency Report on greenhouse gas emissions as part of climate action commitments under the Paris Agreement.

Food Safety Measures

The National Food Safety Committee's annual report was reviewed, highlighting initiatives like forming a national team to evaluate food safety legislation and launching projects with FAO support to enhance compliance with food safety standards across establishments.

Health Sector Reforms

The Cabinet reformed both the Health Council and National Committee for Public Health under Ahmed bin Ali Al Sayegh's leadership, involving senior representatives from federal health authorities and private healthcare sectors.

International Agreements

The Cabinet ratified several international agreements including an air transport agreement with Qatar and cooperation with Tunisia while approving negotiations on over 30 additional agreements covering diverse fields such as taxation, nuclear regulation, cultural cooperation among others.

H.H concluded by emphasising that "our budgets remain balanced... our economy advances with confidence... towards greater prosperity." This reflects ongoing efforts towards sustainable development across various domains within UAE society.

With inputs from WAM