Not all government budgets make headlines. But this one should. The UAE has just approved its largest-ever federal budget for 2026 a milestone that reflects the country’s confidence in its growing and resilient economy.
Announced by Sheikh Mohammed Rashid, the 2026 federal budget totals Dh92.4 billion in both revenues and expenditures, marking a 29% increase compared to last year. Sheikh Mohammed described it as a balanced and forward-looking plan that supports investment, trade, and sustainable growth across key sectors.
The budget places strong emphasis on social development, which receives the largest share at Dh34.6 billion (37%), covering pensions, education, and healthcare. Government affairs follow with Dh27.1 billion (29%), while financial investments are allocated Dh15.4 billion (17%).Â
Federal expenses amount to Dh12.7 billion (14%), and infrastructure and economic development receive Dh2.6 billion (3%) a sign of continued commitment to strengthening public services and national projects.
Beyond the numbers, the UAE’s economic momentum tells an even bigger story. The nation continues to stand out globally as a hub for investment and trade. It ranks first in the Arab world and among the top 20 global economies in exporting direct foreign investment.Â
By 2024, the UAE’s cumulative outbound FDI reached Dh1.05 trillion, growing 9% from the previous year, while outbound flows totalled Dh86 billion, up 4.8%.
Trade performance has also seen remarkable progress. Over the past five years, UAE exports have surged by 103%, jumping from Dh470 billion in 2019 to Dh952.6 billion in 2024. Non-oil exports alone grew by an impressive 247%, reflecting the country’s successful diversification efforts. Imports, too, have more than doubled, reaching Dh666.5 billion, underlining the strength of domestic demand and international connectivity.
The UAE Cabinet also approved 35 international agreements and memoranda to further boost economic cooperation across multiple sectors reinforcing the country’s role as a trusted global partner and investment gateway.
One Investments built for what comes next
The 2026 federal budget isn’t only about figures and allocations it’s about confidence, stability, and vision. It shows how the nation is positioning itself among the world’s most dynamic economies, balancing growth with fiscal discipline. For investors, it’s a sign of trust and long-term opportunity.
At One Investments, the focus has always been on the future. We understand the goals, expectations, and emotions that drive investors. This insight shapes every opportunity we offer ensuring each investment reflects both ambition and trust in a market built for long-term growth.
