UAE cabinet approves federal budget for 2024-2026

The UAE Cabinet has approved a federal budget of AED 192 billion for 2024-2026.

The spending plan was adopted during a Cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

During the meeting, which was held at Qasr Al Watan in Abu Dhabi, the Cabinet also issued a law establishing the UAE Drug Corporation, tasked with regulating and licensing healthcare and pharmaceutical products, including nutritional supplements, cosmetics, as well as veterinary and agricultural products.

The 2024 budget takes into account total estimated expenses of AED 64.06 billion and estimated revenues of AED 65.72 billion.

Social development and benefits represent the largest proportion of the 2024 budget at 42 per cent, followed by government affairs (39%).

The rest of the budget was allocated for infrastructure and economic resources (4%), financial assets and investments (4%), while other federal expenses account for 11 per cent.

.@HHShkMohd chairs the cabinet meeting at Qasr Al Watan in Abu Dhabi; approves AED 192 billion federal budget for 2024-2026. pic.twitter.com/RynbWnrB3J

— Dubai Media Office (@DXBMediaOffice) October 9, 2023

Financial Stability Council

The UAE Government issued a federal decree-law regarding the establishment and organization of the Financial Stability Council.

The Council’s board of directors include the Minister of State for Financial Affairs, the Governor of the Central Bank, the Chairman of the Securities and Commodities Authority’s board, the Chairman of Abu Dhabi Global Market’s board, the Chairman of the Dubai Financial Services Authority’s board, the Under Secretary of the Ministry of Finance, and the Assistant Governor of the Central Bank for Monetary Policy and Financial Stability.

The entity aims to promote and protect financial stability at the national level, in addition to strengthening the role of the financial system to promote sustainable economic development.

Media exemption during COP28 coverage

The Cabinet approved a decision to temporarily exempt media outlets from a number of federal fees during the COP28 summit from November 30 to December 12, 2023.

Exemptions included entry permits for equipment and cameras accompanying media professionals and photographers from outside the country, permits for ground and aerial photography, as well as exemptions on the fees for frequency spectrum services and wireless equipment.

More than 5,000 journalists are expected to attend COP28, while the number of devices requiring the use of the frequency spectrum is expected to reach 2,500.

Other announcements

• The Cabinet approved a policy to classify urban and rural areas in the country. It also approved the Digital Government Service Policy which aims to measure the level of services, its availability and responsiveness.
• The Cabinet approved a decision to reduce the fees of the Ministry of Human Resources and Emiratisation services for industrial companies registered in the National In-Country Value (ICV) Programme.
  • As per the decision, a company will be classified as category one if it has a higher rating than 60 per cent in the National In-Country Value (ICV) Programme, after fulfilling all the obligations mentioned in the federal decree regarding the Regulation of Employment Relationship and its amendments, in addition to committing to the objectives of Emiratisation and demographic diversity.
• The Cabinet adopted amendments on the fees for industrial property services, provided by the Ministry of Economy. The amendments included a 50 per cent reduction of fees for all SMEs, as well as academic institutions services, which aim to attract SMEs and help promote their growth and expansion.
• The Cabinet approved the executive regulation of the genetic fingerprint in the country. Also, it approved the executive regulations of the 'Federal Decree Law No. 41 of 2022 on Civil Personal Status for Non-Muslims', to regulate family matters related to marriage, divorce, inheritance and child custody.
• The UAE Cabinet approved the executive regulation of the Federal Decree-Law No. 6 of 2022 on cooperatives. Regulations include specifying the conditions of forming the cooperatives, allowing non-citizens to obtain memberships, establishing the boards of directors, voting, listing and trading in financial markets, and other provisions.
• The Cabinet adopted amending the Executive Regulation of Federal Law No. 7 of 2017 on Excise Tax.
• The Cabinet approved several international agreements with a number of friendly countries, including Austria, Turkey, Tanzania, Kenya, Barbados, Palau and Argentina.
• Also, the Cabinet approved an agreement with the World Customs Organisation on establishing a Regional Office for Capacity Building for the Middle East and North Africa.
• The Cabinet approved the establishment of the UAE Embassy in Venezuela in the city of Caracas; and in Santo Domingo, the capital of the Dominican Republic.
• The Cabinet also approved the UAE hosting of 3 international events including the General Assembly Meeting of the Euro-Arab Judicial Training Network; the International Civil Aviation Organisation’s (ICAO) Global Implementation Support Symposium 2025; and an international conference on military law.
• The Cabinet approved the restructuring of the board of directors of the UAE Space Agency, chaired by Sarah Bint Yousif Al Amiri, Minister of State for Public Education and Advanced Technology.
• The Cabinet approved the restructuring of the board of directors of the National Communications Higher Committee, aiming at enhancing the UAE’s contribution to achieving the objectives of the United Nations Framework Convention on Climate Change (UNFCCC) 1992.
• The Cabinet approved the participation of the UAE in the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust of the International Monetary Fund (IMF) and also reviewed a number of government reports for the year 2022 and the first half of 2023.