UAE Cabinet approves federal general budget for 2026

Key highlights of the 2026 Federal Budget

The Cabinet approved the Federal General Budget for 2026, with total estimated revenues and expenditures of AED92.4 billion, making it the largest federal budget in the UAE’s history. The budget marks a 29% increase from 2025 and aims to fund development, economic, and social projects in line with the “We the UAE 2031” Vision. Significant allocations include AED34.6 billion for social development and pensions, AED27.1 billion for government affairs, AED15.4 billion for financial investments, AED12.7 billion for federal expenses, and AED2.6 billion for infrastructure and economic development.

Economic growth and investment achievements

The Cabinet reviewed the National Agenda for Outbound Direct Investment 2024, which showed a cumulative foreign direct investment of AED1.05 trillion, recording a 9% growth from 2023. The UAE ranks first in the Arab world and among the top 20 global economies in outbound foreign direct investment. The UAE Export Development Policy also showed strong growth, with non-oil trade increasing from AED469.3 billion in 2019 to AED952.6 billion in 2024, a rise of 103%, while total exports grew from AED40.1 billion to AED139.3 billion, marking a 247% increase.

National and environmental initiatives

As part of sustainability efforts, the Cabinet approved the National Guideline for Assessing the Economic Value of Groundwater in the UAE, aimed at preserving national water reserves and ensuring long-term water security. Additionally, the UAE Biennial Transparency Report on greenhouse gas emissions was issued to track progress on climate action and support the goals of the Paris Agreement.

Health, food safety, and social welfare measures

The Cabinet approved the reformation of the Health Council and the National Committee for Public Health to enhance healthcare governance and coordination. Legislation related to social support and empowerment was updated to strengthen shared social responsibility, promote economic independence for beneficiaries, and provide protection for low-income Emirati families. The National Food Safety Committee’s 2024 Annual Report was reviewed, highlighting initiatives such as evaluating food safety legislation, implementing a national risk assessment approach, and launching a training plan for food establishment employees.

Governance, finance, and international agreements

The Cabinet approved updates to federal accounting standards to align with International Public Sector Accounting Standards (IPSAS). Decisions were also made on regulations covering excise goods, taxes, anti-money laundering, and counter-terrorism financing. In international affairs, the Cabinet ratified agreements including an air transport agreement with Qatar and a cooperation agreement with Tunisia, and approved negotiations and signing of more than 30 additional agreements covering taxation, nuclear regulation, cultural and media cooperation, and public finance management.

Conferences and strategic initiatives

The Cabinet approved hosting the International Conference on Artificial Intelligence for Cybersecurity and the Second National Conference of Medical Colleges, underscoring the UAE’s commitment to innovation, education, and strategic development.