The UAE economy recorded 3% real GDP growth in the first quarter of 2026, reaching AED 485 billion at constant prices, supported by strong performance across key non-oil sectors.
According to data from the Federal Competitiveness and Statistics Centre, non-oil GDP grew by 4.8%, increasing its contribution to the national economy to 79.4%, compared with 78% in 2025. The results highlight the continued resilience of the UAE economy and progress in economic diversification despite regional challenges during the quarter.
Key Sectors Drive Growth
Financial and insurance activities recorded the strongest year-on-year growth at 17.3%, followed by construction at 8.1%, human health and social work activities at 7.7%, and information and communication at 5.9%.
Professional, scientific, technical, administrative and support services grew by 4.9%, while real estate activities expanded by 4.8%. Wholesale and retail trade also increased by 2.6%, demonstrating broad-based growth across the economy.
Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, said the results demonstrate the effectiveness of government policies aimed at increasing the contribution of non-oil sectors and strengthening the UAE’s global competitiveness and future readiness.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, highlighted that the continued growth of non-oil sectors reinforces the UAE’s position as a global hub for business and investment and supports the objectives of the “We the UAE 2031” Vision, which aims to double the national economy to AED 3 trillion by 2031.
Foreign Trade Supports Economic Diversification
The UAE’s expanding foreign trade and network of Comprehensive Economic Partnership Agreements (CEPAs) have also contributed to non-oil economic growth by opening new markets and supporting manufacturing, trade and logistics.
During the first half of 2026, UAE non-oil exports increased by 23.9% to AED 452.8 billion, highlighting the growing role of international trade in supporting domestic production and economic diversification.
The latest results underline the UAE’s continued transition towards a more diversified, competitive and sustainable economy, with non-oil industries increasingly driving national growth.
Source: https://www.msn.com/en-ae/news/other/uae-economy-grows-by-3-in-q1-2026-driven-by-strong-non-oil-sector-performance/ar-AA29myC1?ocid=BingNewsSerp
