Federal Law No. (1) of 2026 Concerning the Linkage of the Union General Budget and the Budgets of Independent Federal Entities for Fiscal Year 2026
Federal Law No. (1) of 2026
Federal Law No. (1) of 2026 approves the Union General Budget and the budgets of independent federal entities for fiscal year 2026. It sets estimated federal revenues and expenditures at AED 92.4 billion each and authorises the Ministry of Finance to make specified financial and accounting adjustments during budget execution.
Overview
What this legislation covers
Federal Law No. (1) of 2026 approves the Union General Budget and the budgets of independent federal entities for fiscal year 2026. It sets estimated federal revenues and expenditures at AED 92.4 billion each and authorises the Ministry of Finance to make specified financial and accounting adjustments during budget execution.
Who or what it applies to
- Federal ministries and federal entities whose appropriations form part of the Union General Budget for fiscal year 2026.
- Independent federal entities whose budgets and estimated own financial resources are included in the schedules attached to the law.
- The Ministry of Finance when carrying out the financial, accounting, transfer, settlement and budget-adjustment functions authorised by Article 3.
Key points
Important points at a glance
The law approves the Union General Budget for fiscal year 2026.
Estimated federal revenues are AED 92.4 billion.
Estimated federal expenditures are AED 92.4 billion, producing a balanced budget at the level stated in Article 1.
The detailed budget figures are tied to schedules attached to the law.
The budgets of all independent federal entities covered by the attached schedules are approved, including their estimated own financial resources.
The Ministry of Finance may take financial and accounting measures, transfers, settlements and necessary adjustments during execution of the federal budget within the cases specified in Article 3.
Article 3 includes funding for Cabinet-approved expenditure, projects and programmes and financial effects arising from employee transfers under applicable legislation.
Article 3 also permits additional funding for federal entity budgets as determined during implementation of the 2026 budget.
Article 3 permits budget adjustments resulting from restructuring of the Federal Government in accordance with applicable legislation.
The law applies from 1 January 2026 through 31 December 2026 and is to be published in the Official Gazette.
Practical explanation
Understanding the law
General information: This explanation is an editorial guide to the legislation and official public-finance materials. The official Arabic legislation and its attached schedules remain the primary legal source.
Purpose and legislative background
Federal Law No. (1) of 2026 is the annual federal budget law for the 2026 fiscal year. Its core function is to approve the Union General Budget, approve the budgets of independent federal entities covered by its schedules, and give the Ministry of Finance defined implementation powers needed to administer the budget during the year.
The law sits within the wider federal public-finance framework. The Ministry of Finance states that the 2022–2026 federal budget cycle is implemented under Federal Decree-Law No. (26) of 2019 Regarding Public Finance. Cabinet Resolution No. (40) of 2021 provides executive regulations for that public-finance decree-law. These instruments address the broader rules of budget preparation, execution, financial reporting and related controls; Federal Law No. (1) of 2026 performs the narrower annual appropriation function for fiscal year 2026.
Official Ministry of Finance material describes the 2026 budget as a balanced federal budget, with estimated revenue and expenditure both at AED 92.4 billion. The Ministry also reports that the 2026 figure is approximately 29% higher than the AED 71.5 billion federal budget for 2025.
Scope and who it applies to
The law primarily operates within the Federal Government's public-finance system. It directly concerns federal ministries and entities whose appropriations form part of the Union General Budget, independent federal entities whose budgets are included in the attached schedules, and the Ministry of Finance in its role administering and adjusting the budget within the authority granted by Article 3.
It is not framed as a general regulatory law imposing day-to-day private obligations on residents or businesses. Private persons may nevertheless be affected indirectly through government programmes, procurement, public services, taxes, fees or projects funded through the budget, but those rights and obligations arise under the relevant sector-specific legislation and arrangements rather than from this four-article budget law alone.
Key definitions
The budget law itself is short and does not contain a standalone definitions article. For the broader public-finance context, Federal Decree-Law No. (26) of 2019 Regarding Public Finance defines key concepts such as the Federal Government, the Ministry of Finance, federal entities, independent federal entities, the fiscal year, the annual general budget law and the general budget.
- Fiscal year: Under the public-finance framework, the federal fiscal year runs from 1 January to 31 December.
- Union General Budget: The annual approved framework of estimated public resources and expenditures for federal entities, as governed by the public-finance legislation and the annual budget law.
- Independent federal entities: Federal entities established under applicable legislation and treated as independent entities within the federal public-finance framework.
Main rights and obligations
What the Law itself provides
- Article 1 approves estimated Union General Budget revenue of AED 92.4 billion and estimated expenditure of AED 92.4 billion.
- Article 1 makes the attached schedules the detailed source for the budget figures.
- Article 2 approves the budgets of independent federal entities, including their estimated own financial resources as shown in the attached schedules.
- Article 3 gives the Ministry of Finance authority to take specified financial and accounting actions during implementation.
- Article 4 makes the law applicable for the 2026 fiscal year, from 1 January through 31 December 2026.
What official Ministry of Finance materials add
The Ministry of Finance's 2026 budget page reports the following principal revenue sources: federal entity service fees of AED 30.105 billion; taxes of AED 24.665 billion; investment returns of AED 20.443 billion; Emirate contributions of AED 16.717 billion; and pension contributions of AED 470 million.
The same Ministry material reports expenditure by broad sector as AED 34.630 billion for social development and pensions, AED 27.102 billion for government affairs, AED 15.378 billion for financial investments, AED 12.665 billion for other federal expenses, and AED 2.625 billion for infrastructure and economic resources.
These Ministry figures are explanatory public-finance information. They should not be treated as replacing the detailed schedules attached to the enacted law.
Procedures and compliance
Article 3 is the operational centre of the law. It permits the Ministry of Finance to carry out financial and accounting measures, transfers, settlements and adjustments during budget execution in three categories: Cabinet-approved expenditure, projects and programmes or employee-transfer effects; additional funding determined during implementation; and financial effects resulting from Federal Government restructuring under applicable legislation.
The broader rules governing how federal entities plan, execute, record and report budget transactions are found in the public-finance legislation and its executive regulations. In practice, an entity should therefore read its appropriation in the 2026 schedules together with the financial circulars, public-finance rules and any Cabinet or Ministry decision relevant to the transaction being implemented.
Deadlines and time limits
The principal time limit created by this law is its fiscal-year application period. Article 4 states that it applies from 1 January 2026 through 31 December 2026. The law itself does not establish a separate filing deadline, appeal deadline or private compliance period.
Enforcement, violations and penalties
Federal Law No. (1) of 2026 does not establish a schedule of criminal offences, administrative violations or monetary penalties. Financial accountability, budget controls, accounting obligations and consequences for non-compliance are matters addressed through the wider federal public-finance framework and other applicable legislation.
Practical scenarios
Scenario 1 — Cabinet-approved programme requiring funding
A federal entity receives Cabinet approval for a programme during the fiscal year. Article 3 allows the Ministry of Finance, within the legal framework governing budget execution, to take the necessary financing and accounting steps for qualifying Cabinet-approved expenditure, projects or programmes.
Scenario 2 — Federal restructuring
A restructuring measure transfers functions or staff between federal entities and changes the financial requirements of the entities involved. Article 3 expressly contemplates the Ministry of Finance making budget adjustments and accounting settlements for financial effects resulting from Federal Government restructuring carried out under applicable legislation.
Scenario 3 — Independent entity with own-source revenue
An independent federal entity has both an approved expenditure budget and estimated revenue generated from its own activities. Article 2 confirms approval of independent-entity budgets including the estimated own financial resources shown in the attached schedules.
Scenario 4 — Reading the headline AED 92.4 billion figure
A reader sees that revenue and expenditure are both AED 92.4 billion. Article 1 establishes those totals, but the detailed composition is not contained in the four operative articles. The attached schedules and Ministry of Finance publications should be used to understand the underlying allocations and revenue categories.
Amendments and related legislation
No amendment to Federal Law No. (1) of 2026 was identified on the official UAE Legislation materials reviewed as of 31 August 2026. Because the law is an annual fiscal instrument, Article 4 itself limits its application to the period ending 31 December 2026.
Important related instruments and materials include:
- Federal Decree-Law No. (26) of 2019 Regarding Public Finance: the principal federal public-finance framework identified by the Ministry of Finance.
- Cabinet Resolution No. (40) of 2021: executive regulations of the 2019 Public Finance Decree-Law.
- Federal Law No. (7) of 2022: identified by the Ministry of Finance as amending Federal Decree-Law No. (26) of 2019.
- 2026 schedules attached to Federal Law No. (1) of 2026: the detailed statutory budget tables referenced by Articles 1 and 2.
- UAE Ministry of Finance Federal Budget Yearbook 2026: official explanatory material on the 2026 budget structure and policy context.
What businesses and individuals should check
- Whether the issue they are researching actually arises from this annual budget law or from a separate tax, procurement, employment, licensing, social-benefit or sector-specific law.
- The official attached schedules where the question concerns a federal entity's budget allocation.
- The applicable public-finance legislation where the question concerns how a federal entity may spend, transfer, record or account for appropriated funds.
- Any Cabinet, Ministry of Finance or entity-specific decision issued for the programme or transaction in question.
- The official Arabic text if wording, legal effect or interpretation is material.
When professional legal interpretation may be useful
Professional interpretation may be useful where a question involves the legal authority for a particular budget transfer, the interaction between an annual appropriation and another federal statute, the financial consequences of a federal restructuring measure, a dispute over the proper legal source for a government payment, or the application of public-finance controls to a specific transaction.
Official references
- UAE Legislation — Federal Law No. (1) of 2026
- UAE Legislation — attached schedules and tables
- UAE Ministry of Finance — UAE Federal Budget 2026
- UAE Ministry of Finance — Annual Budget Report 2026
- UAE Legislation — Federal Decree-Law No. (26) of 2019 Regarding Public Finance
- UAE Legislation — Cabinet Resolution No. (40) of 2021
Practical notes
- This is an annual public-finance appropriation law rather than a law creating general private-law rights or duties for individuals and businesses.
- The headline amount in Article 1 is AED 92.4 billion for estimated revenues and AED 92.4 billion for estimated expenditures; detailed allocations should be checked against the attached official schedules and Ministry of Finance publications.
- The 2026 federal budget should be read together with the UAE public-finance framework, particularly Federal Decree-Law No. (26) of 2019 Regarding Public Finance and its executive regulations, as amended or otherwise applicable.
- The law itself does not create a schedule of criminal or administrative penalties.
- The Ministry of Finance's 2026 budget materials report major revenue sources and expenditure-sector allocations that help explain the budget but are explanatory materials, not substitutes for the law and its attached schedules.
Legislation text
Text and provisions
Source and translation notice: This page is a structured English rendering prepared from the official Arabic text published on the UAE Legislation platform. It is not presented as an official English translation. For interpretation and application, the official Arabic text and the schedules attached to the law should be consulted.
Federal Law No. (1) of 2026
Concerning the Linkage of the Union General Budget and the Budgets of Independent Federal Entities for Fiscal Year 2026
Preamble
We, Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, having reviewed the Constitution and Federal Law No. (1) of 1972 Regarding the Competences of Ministries and the Powers of Ministers, as amended, and based on the proposal submitted by the Minister of Finance, the approval of the Cabinet and the Federal National Council, and the ratification of the Federal Supreme Council, issue the following Law.
Article 1 — Union General Budget for 2026
The estimated revenues of the Union General Budget for fiscal year 2026 are AED 92,400,000,000 (ninety-two billion four hundred million dirhams), and the estimated expenditures are AED 92,400,000,000 (ninety-two billion four hundred million dirhams), in accordance with the data set out in the schedules attached to this Law.
Article 2 — Budgets of independent federal entities
The budgets of all independent federal entities are approved, including their estimated own financial resources included in the schedules attached to this Law.
Article 3 — Ministry of Finance implementation powers
During implementation of the Union General Budget, the Ministry of Finance is authorised to take the necessary financial and accounting measures and to make financial transfers, accounting settlements and required adjustments to federal entity budgets in relation to the following:
- Providing the financing required for expenditures, projects and programmes approved by the Cabinet for federal entities, or arising from the transfer of employees in accordance with legislation issued in that regard.
- Providing additional financing to the budgets of federal entities as determined during implementation of the budget for fiscal year 2026.
- Federal Government restructuring carried out in accordance with applicable legislation, including the resulting financial effects on the Union General Budget.
Article 4 — Publication and period of application
This Law is to be published in the Official Gazette and applies from 1 January 2026 through 31 December 2026.
Schedules attached to the Law
The official law expressly ties the revenue, expenditure and independent-entity budget figures to schedules attached to the legislation. Those schedules form an important part of the official budget record and should be consulted on the UAE Legislation platform for detailed figures.
Official schedules and tables on UAE Legislation
Official source
Verification
Official source & references
Official legislation sourcehttps://uaelegislation.gov.ae/ar/legislations/4183Open ↗This page is a research and educational resource. Legislation can be amended, repealed, supplemented by regulations or interpreted by courts and authorities. Obtain advice before relying on it for a live matter.