His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, chaired a Cabinet meeting in Abu Dhabi where the largest Federal Budget in the nation’s history was approved, alongside reviewing significant economic milestones and approving new national policies.
Record Budget and Financial Sustainability
2026 Federal Budget Approved: The Cabinet approved the AED92.4 billion Federal Budget for 2026, which is balanced with equal estimated revenues and expenditures. This budget is 29% larger than the 2025 budget.
Budget Allocation: Major allocations focus on social development and pensions (37%), government affairs (29%), and financial investments (17%).
Financial Support Program: A new Federal Financial Support Programme was established with dedicated annual allocations to ensure the financial sustainability and institutional resilience of federal entities.
Economic Strength and Global Investment
Outbound Direct Investment (ODI) Surge: The UAE’s cumulative outbound investments reached AED1.05 trillion, marking a 9% growth over the previous year. The UAE now ranks first in the Arab world and among the top 20 global economies for outbound FDI.
Export Growth Policy Success: The results of the UAE Export Development Policy showed a remarkable 103% increase in non-oil trade with target countries, rising from AED470 billion in 2019 to AED950 billion in 2024. Total exports saw an even higher jump of 247%.
International Agreements: The Cabinet approved 35 international agreements and memoranda of understanding to boost economic and development cooperation.
Key National Policy Approvals
The Cabinet also introduced several new policies covering various sectors:
Water Conservation: The National Guideline for Assessing the Economic Value of Groundwater was approved to help preserve reserves, reduce consumption, and ensure water security in line with the UAE’s 2050 and 2051 strategies.
Climate Change: The issuance of the UAE’s Biennial Transparency Report (BTR) on greenhouse gas emissions was approved, detailing the nation’s progress on climate mitigation and adaptation efforts under the Paris Agreement.
Social Support and Labor: Updated federal legislation was approved to strengthen social support and empowerment, aiming to help beneficiaries join the labor market, achieve economic independence, and secure a dignified life for vulnerable and low-income Emirati families.
Financial Crime and Taxation: The Cabinet approved a resolution on excise goods and taxes and the executive regulations for the Federal Decree-Law on Anti-Money Laundering and Combating Terrorism Financing.
Health and Governance: The Health Council and the National Committee for Public Health were both reformed.
In his concluding remarks, Sheikh Mohammed affirmed that the nation’s economy is advancing with “confidence and stability” under the leadership of Sheikh Mohamed bin Zayed.
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