UAE Approves Groundbreaking 2026 Budget

UAE Approves Historic Budget for 2026: Growth and Dynamism

The United Arab Emirates has reached another milestone: the Federal Cabinet approved the largest federal budget to date for 2026. This decision not only reflects numbers but also indicates that the country's economic foundations are stable, investment confidence is increasing, exports are dynamically developing, and the Emirates' position on the global stage is becoming more significant.

Unprecedented Budget Scale

The estimated revenue for the 2026 federal budget reaches 92.4 billion dirhams, balanced with expenditures. This figure represents a 29% increase compared to the previous year. The budget is a record not only in size but also in structure, showcasing the state's priorities and a long-term strategy that guides the Emirates toward sustainable growth.

The distribution of budgetary resources is also telling:

Social development and pensions: 34.6 billion dirhams (37%)

Administrative affairs: 27.1 billion dirhams (29%)

Financial investments: 15.4 billion dirhams (17%)

Federal expenses: 12.7 billion dirhams (14%)

Infrastructure and economic development: 2.6 billion dirhams (3%)

The proportions clearly indicate that social welfare, effective operation of state institutions, and future financial investments are prioritized. The smaller share of infrastructure and economic development suggests that the fundamental systems are already in place, with the focus now shifting to human and institutional development.

The Power of FDI and Global Engagement

The UAE's foreign investments are also showing impressive figures. The country's cumulative FDI balance reached 1.05 trillion dirhams by 2024, a 9% increase compared to the previous year. The inflow of foreign direct investment in 2024 reached 86 billion dirhams, a 4.8% increase.

The UAE plays a leading role regionally and internationally:

It ranks first in the Arab world in terms of direct foreign capital deployment, representing 38.4% of the total Arab FDI flow.

In West Asia, it is also a leader, accounting for 35.1% of regional FDI.

In the Middle East and North Africa region, it also holds the first place with a 35% share.

This presence provides not only an economic advantage but also ensures strategic influence for the country on the global economic map.

Successes in Export Policy

During the period between 2019 and 2024, the UAE's export development policy resulted in a 103% increase in export volume, from 470 billion dirhams to 952.6 billion dirhams. Within this, non-oil-based exports are particularly noteworthy, as they grew from only 40 billion dirhams in 2019 to 139.3 billion in 2024, marking a 247% increase.

Strengthening non-oil-based exports is a key element of the country's long-term economic strategy. The UAE is increasingly relying less on fossil fuels, opting instead for a knowledge-based, innovative, and service-oriented economy.

Import Volume Doubled

As a result of growing consumption and economic activity, imports also expanded significantly. They grew from 308 billion dirhams in 2019 to 666.5 billion in 2024, a 115% increase. This trend is partly due to population growth and partly due to the expansion of the corporate sector.

Significant imports also indicate that the UAE's economy is open and globally integrated, with strong internal demand.

Strengthening International Relations

The Cabinet not only approved the budget but also sanctioned 35 international agreements and memoranda of understanding, primarily covering economic and cooperation areas. This also shows that international collaboration in trade, innovation, or investments is of paramount importance for the UAE.

Balance and Future-Oriented Vision

The adoption of the 2026 budget is not just a technical decision but a message: the UAE rests on a stable foundation and intends to continue down the path of sustainable, balanced development. The country is committed to economic diversification while maintaining social stability and further strengthening its global positions.

The balanced budget, rising exports, growth in non-oil revenues, and global investor presence all support the notion that the UAE is not just a regional power center but increasingly a global economic actor.

Closing Thoughts

The message of the 2026 federal budget is clear: the United Arab Emirates is building for the future. A future where prosperity is not just the privilege of the present generation but can be passed on to future generations through a stable and sustainable system. Dubai plays a leading role in this process, not just as an economic hub but as the engine of innovation and development.

(Source of the article: UAE Cabinet statement.)