Participatory budget
The UAE government prepares its budget in a participatory method through several steps to make sure that financial resources are spent to meet the society's needs. Before drafting the budget, the government studies the ideas and trends in society. During the budgeting process, Federal National Council receives the draft budget for discussing it amongst their members and for providing feedback to Supreme Council for approval.
Introducing the general budget
The general budget is the financial programme of the federal government used to achieve economic and social development. This is accomplished through the optimal distribution and efficient use of resources within the framework of the federal strategy on the expected spending by federal authorities during the coming fiscal year, provided that income and expenditure are balanced.
According to the Federal Decretal Law No. 26 of 2019 on Public Finance, a separate budget for federal service authorities may be earmarked and submitted to Ministry of Finance (MoF) for approval. Also, all federal authorities may, by virtue of a Cabinet resolution, be assigned to prepare a draft medium-term budget. The Cabinet resolution shall determine the budget’s terms in years provided that it includes annual estimates for both income and expenditure, as approved by the Cabinet.
Issuing the budget law
The Minister of Finance issues a circular that specifies the necessary steps for the preparation of next year’s draft budget during the third month of the present fiscal year. This circular includes the budget cap, approved strategic goals, key performance indicators, revenue forecasts, and the deadline for submitting the draft budget to the Ministry of Finance. The Minister also issues a separate circular that provides guidance on closing the accounts and preparing the final financial statements for the previous fiscal year.
The fiscal year comprises 12 months, starting from January 1 and ending on December 31 of each year.
1. Circular Issuance: The Minister of Finance issues a circular specifying the steps for preparing next year’s draft budget; and another circular on preparing the final account of the previous fiscal year.
2. Forecasts for Revenue and Expenses: Each federal authority determines its programmes, plans, and key performance indicators, as well as their initial forecasts for revenue and expenses, and submit them to MoF.
3. Draft Budget Law: MoF prepares an annual draft budget law, and a draft resolution of the medium-term plan, and submits both to the UAE Cabinet.
4. Preparation for Final Approval: The UAE Cabinet discusses and prepares both drafts for final approval. It then submits the draft law for the federal budget and the autonomous budgets to the Federal National Council (FNC).
5. Feedback: The FNC discusses and provides its feedback on the draft and submits it to the Federal Supreme Council (FSC) for approval.
6. Review and Approval: The FSC reviews the draft law along with the FNC’s feedback and notifies MoF on the readiness of the budget law.
7. Budget Law Submission: The budget law is submitted to MoF which, in turn, informs all federal authorities about their allocations.
Source: Ministry of Finance website
Responsibilities of Federal Entities
According to the Federal Decretal Law No. (26) of 2019 on Public Finance, a separate budget for federal service authorities may be earmarked and submitted to MoF for approval within budget law. Also, all federal authorities may – by virtue of a Cabinet resolution – be assigned to prepare a draft medium-term budget. The Cabinet resolution shall determine the budget’s terms in years provided that it includes annual estimates for both income and expenditure as approved by the Cabinet.
In line with the UAE Cabinet Resolution No 1/181 of 2008, all ministries and federal authorities must:
- Prepare draft budgets on the basis of a medium-term plan
- Adopt the principles of a zero-based budgeting system
- Work as per the rules and regulations of the consolidated financial procedures manual
Each federal authority determines its programmes, plans, and key performance indicators (KPIs) according to the strategic plan approved by the Cabinet within the budget cap. All authorities must also submit their initial forecasts for revenue and expenses allocated to chapters, line items, and activities, along with performance measures and efficiency indicators according to the circular, which specifies submission deadline. The fiscal year starts from January 1 and ends on December 31.
Throughout the process, MoF provides technical support and collaborates with all federal entities to determine their main and complementary services and activities, along with the costs, starting from zero to the actual value, then adding this within the approved automated systems.
Source: MoF website
Federal Budget Allocation by Sector
In each annual budget, revenues, expenses and allocations are determined across specific sectors that align with the UAE’s commitment to sustainable development.
- Social Development: Allocations for public, university and higher education services, healthcare, and community protection services.
- Social Benefits: Provisions for pension funds, social assistances, marriage fund grants, Sheikh Zayed Housing programme grants, and other services.
- Government Affairs: Allocations to improve the efficiency of government services, enhance digital transformation, and streamline administrative processes.
- Infrastructure and Economic Resources: Investments in key infrastructure projects, including roads, bridges, renewable energy, and communication.
- Financial Assets and Investments: Allocations for federal investment projects, managing financial assets, and expenditures related to debt instruments.
- Other Federal Expenses: Includes support for those affected by natural events, settlement of financial obligations for federal entities, and allocations for special reserves.
Source: MoF website
Related links:
- UAE Federal Budget Archive – Ministry of Finance
- UAE Federal Budget Overview - Ministry of Finance
Updated on:
05 Mar 2026
