In November 2025, UAE’s Cabinet approved the 2026 budget with historical total expenditures of AED 92.4 billion where the 29.2% expenditure rise will focus on supporting sustainable development, financial sustainability and economic growth. The 2026 budget reflects the UAE's dedication to its long-term strategic objectives, notably the "We the UAE 2031" vision. It forms part of a broader effort to enhance public finance management, guaranteeing that government expenditure directly supports the nation's sustained strategic goals.
The UAE's federal budgeting system has undergone a significant transformation, moving from the "Line Item Budget" used in 1972 to a five-year zero-based budgeting system for the 2022-2026 term. This evolution underscores the nation's strategic position in global commerce, where it leverages bilateral agreements and investment partnerships to counter fragmentation and ensure continued economic expansion.
The UAE trade program
Along with the budget, the UAE Global Centre of Trade program was launched in November 2025 to solidify its standing as a premier hub for world commerce. This strategic program aims to diversify the economy, boost non-oil exports, and foster innovation.
The primary objectives of the program are to strengthen the UAE's global positioning in commerce and trade, achieve economic diversification by boosting non-oil exports, and facilitate expansion and growth by helping Emirati products access new international markets, all while supporting long-term national goals Net Zero 2050.
Key components of the program
Attracting top firms: Aims to attract 1,000 leading international trading and manufacturing companies to establish operations within the UAE.
Digital gateway (UAE Export Portal): Creation of an integrated digital platform designed to efficiently connect thousands of local Emirati exporters with global markets.
Innovation and technology: Leveraging advanced analytics and AI for market forecasting, strengthening trade routes, managing supply chains, and reducing business risk.
Capacity building: Plans to train over 10,000 UAE companies, enhancing their ability to compete globally.
As a dependable network of trade routes, the UAE is shifting towards non-oil trades as it exceeded AED 1.7 trillion in the first half (H1) of 2025, up 24% year-on-year. Given the program's focus on bolstering global trade, businesses operating across different corridors have a significant opportunity to leverage the UAE's capacity to close trade deficits.
5 key takeaways for trade businesses
Both the trade program and the annual budget 2026 brings a huge shift in for trade businesses in 2026. While we look forward to the significant investment in logistics infrastructure, industrial zones, and the expansion of midstream/trading capabilities, here are the key focuses for trade businesses in the UAE:
Focus on growth: Record-setting budget plans (e.g., Dubai's AED 302.7bn for 2026-28) signal a strong government commitment to infrastructure, public services, and strategic sectors, creating significant business opportunities.
Strategic shift to non-oil trade & global competitiveness: The UAE is prioritizing the growth of non-oil trade, supported by strong performance and ambitious targets to attract international companies.
Targeted business support: SMEs will benefit from reduced fees and better government access, while the 9% Corporate Tax rate is clarified, with Free Zone entities retaining a 0% rate on "qualifying income" like manufacturing and logistics.
Emphasis on digital, innovation, and technology: There is a clear push for technology-driven trade sectors, with increased focus on digital service exports, AI, and innovation to create new efficiencies and trade avenues.
Enhanced infrastructure and market confidence: Budget allocations favor improving physical connectivity (ports, free zones) and expanding global market access, signaling long-term economic stability and confidence to international trade partners.
The core objective of the budget is to strengthen the country's position as a vital international hub for goods and services by connecting UAE exporters with high-demand markets, simplifying trade procedures, and introducing new resources. As the UAE continues to streamline the increasing trade flow, businesses will increasingly seek integrated infrastructure not just for movement of physical goods, but payments as well. This infrastructure must facilitate compliant and rapid payments, a need that is particularly acute for small and medium-sized enterprises (SMEs). In 2026, SMEs are poised to capitalize on the robust economic outlook, driving digital transformation, AI adoption, and business sustainability.
While there are competitive financial platforms, the right choice aligned with ‘UAE 2031’ vision should provide features such as API integrations, multi-currency accounts, and capacity to transact same-day payments, critical for guaranteeing seamless global trade operations. Now is the moment for trade businesses to accelerate their efforts and leverage the initiatives designed to capitalize on the UAE's rapid trade expansion and growing international partnerships.
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