The UAE is stepping confidently into 2026 with its biggest-ever federal budget. The Cabinet has approved a Dh 92.4 billion plan that reflects strong revenues, solid spending, and a focus on social wellbeing. It’s a clear sign of how the nation continues to grow, not just in numbers, but in vision.
The move underlines a 29 percent increase in both projected revenues and expenditures compared to this year, confirming the UAE’s steady economic momentum and commitment to long-term national goals.
Breaking down the 2026 federal budget
This new budget highlights how the UAE continues to balance progress with stability. Both revenues and expenditures are estimated at Dh 92.4 billion, keeping the federal accounts even.
Here’s how the budget is divided across sectors:
- Social development and pensions: Dh 34.6 billion (37%)
- Government affairs: Dh 27.1 billion (29%)
- Financial investments: Dh 15.4 billion (17%)
- Federal expenses: Dh 12.7 billion (14%)
- Infrastructure and economic development: Dh 2.6 billion (3%)
Social welfare and public services clearly remain top priorities. Nearly two-thirds of the budget supports citizens, government operations and investment initiatives that keep the economy active and sustainable.
Driving national growth and stability
The 2026 budget follows a pattern that’s become central to the UAE’s development story — balance, prudence and forward thinking. The government continues to invest heavily in people, innovation, and partnerships that make the UAE a trusted global economy.
By maintaining a balanced budget, the UAE reaffirms its position as a nation that grows without compromising fiscal discipline. This approach has helped the country strengthen its standing among the world’s top 20 economies for foreign direct investment.
Strong investments and expanding trade
The UAE’s foreign investments continue to grow steadily. In 2024, the country’s outbound foreign direct investment (FDI) reached Dh 1.05 trillion, recording a 9 percent rise from the previous year. Outbound investment flows touched Dh 86 billion, reinforcing the country’s reputation as a major global investor.
Trade has also seen remarkable progress. Non-oil exports reached Dh 139.3 billion in 2024, a massive leap from Dh 40 billion in 2019. Imports also climbed to Dh 666.5 billion, reflecting a growing, diversified economy that continues to attract international partners and opportunities.
for residents and businesses
This record budget doesn’t just speak to economists; it affects everyone who lives and works in the UAE.
- For residents: Increased spending on social development could enhance education, healthcare, and public welfare programmes. Pension systems are also set for steady support.
- For entrepreneurs and investors: More focus on financial investments and global trade will likely create new opportunities across non-oil sectors such as logistics, manufacturing, and technology.
- For government services: Nearly a third of the budget goes into government affairs, suggesting continued investment in digital transformation, service delivery and governance efficiency.
While infrastructure takes a smaller portion this year, large-scale projects will likely be driven by emirate-level or public-private partnerships, keeping development on track without stretching federal allocations.
A message of confidence from leadership
Announcing the budget, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, emphasised the nation’s resilience. He stated that the UAE’s budgets remain balanced, its investments continue to grow, and its foreign trade is accelerating — all signs of an economy built on strength and foresight.
The UAE’s fiscal policies have consistently focused on sustainability, diversification, and inclusivity — values that continue to guide national priorities across education, housing, and infrastructure.
As 2026 approaches, the UAE’s focus remains clear: long-term stability paired with modernisation. The emphasis on social welfare, financial discipline and investment ensures that growth remains sustainable and inclusive.
For businesses and residents, this means continued access to opportunity, steady infrastructure development, and a confident economy that stays adaptable in a fast-changing global landscape.
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