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Home Sector Banking & Finance Abu Dhabi transitions to performance-based budgeting to enhance service quality, transparency in 2026

Abu Dhabi transitions to performance-based budgeting to enhance service quality, transparency in 2026

Performance-Based Budgeting links spending to goals, enhancing service quality and community well-being 
Abu Dhabi transitions to performance-based budgeting to enhance service quality, transparency in 2026
The 2026 Budget Cycle unites over 450 officials to discuss financial strategies for growth. (Photo Credit: Abu Dhabi Media Office)

The Department of Finance – Abu Dhabi (DoF) has organized the 2026 Budget Cycle through a high-profile event that convened over 450 senior officials representing 65 government entities throughout the emirate.

This year’s cycle signifies Abu Dhabi’s complete transition to the Performance-Based Budgeting (PBB) Model, an innovative initiative that directly connects government expenditure to entity-level objectives, ensuring measurable advancements in service quality and community well-being. The model also enhances transparency, fosters data-driven decision-making, and aligns with global best practices endorsed by the Organisation for Economic Co-operation and Development (OECD).

The event included extensive discussions surrounding the key pillars of the 2026 budget, addressing plans and strategies to spur financial sector growth in accordance with government priorities. By embracing innovation, collaboration, and transparency, DoF aims to unify efforts across entities to direct resources toward measurable outcomes that reflect the emirate’s strategic vision, Abu Dhabi Media Office reported.

Strengthening competitiveness and agility

This annual gathering, which attracted notable attendance, featured a series of interactive and thematic sessions that explored the latest trends in public finance and global budgeting practices. These insights are intended to bolster Abu Dhabi’s competitiveness and support its forward-looking transformation into a more agile and innovative economy.

Her Excellency Buthaina Al Mazrouei, Director General of Government Financial Affairs at DoF, stated: “The 2026 Budget Cycle is a defining moment in our journey to reinforce an integrated financial system that places human well-being at the heart of fiscal policies. This exceptional event builds on the success of the 2025 cycle and reflects the department’s critical role in institutionalizing financial sustainability.

“Guided by the vision of our wise leadership, we continue to shape a financial ecosystem that aligns with Abu Dhabi’s development aspirations. By equipping government entities with the tools for smart, data-led, and priority-based planning, we are committed to delivering real, measurable results. Our ambitious vision, strong collaboration, and unwavering commitment to excellence will further position Abu Dhabi as a global hub for fiscal innovation and sustainability.”

Read more: Abu Dhabi to invest over $10 billion to power data center industry, says TAQA CEO

Emphasis on core values in budgeting

Participants also showcased a variety of innovative initiatives and practices aimed at promoting efficient resource allocation, deemed essential for achieving sustainable economic growth and enhancing quality of life. The event, as a significant annual milestone, serves as the formal kickoff for government entities to commence preparing their budgets for the upcoming year, within a cohesive framework aligned with national priorities and sectoral strategies.

As part of this year’s Budget Cycle, the Department of Finance – Abu Dhabi also unveiled the Budget Excellence Award, an initiative designed to recognize outstanding institutional performance among government partners. The award further emphasizes six core values: collaboration, transparency, innovation, efficiency, impact, and excellence. Additionally, it celebrates entities that exemplify best-in-class practices in budget planning and public financial management. This new initiative underscores DoF’s commitment to nurturing a culture of continuous improvement and strategic alignment in pursuit of sustainable fiscal outcomes.

Moreover, the department has crafted an integrated communications plan to accompany the entire budget cycle, encompassing all phases from initial planning to implementation follow-up, ensuring message consistency in line with world-class financial governance standards.

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