UAE Economy Expands 3% in Q1 2026, Fueled by Non-Oil Sector Growth

The United Arab Emirates’ real GDP expanded by 3 percent year-on-year in the first quarter of 2026, reaching AED485 billion at constant prices, driven by strong performance in non-oil sectors. According to data from the Federal Competitiveness and Statistics Centre, non-oil GDP rose 4.8 percent, bringing its share of the total economy to 79.4 percent compared to 78.0 percent in 2025. Officials noted that the figures demonstrate the resilience of the UAE’s economy and the success of its economic diversification strategy under the “We the UAE 2031” vision, with regional challenges having only a localized and minor impact on overall performance.

Financial and insurance activities led sector growth with a 17.3 percent year-on-year increase, making the largest single contribution to total growth at 2.44 percentage points. Other key expanding sectors included construction (8.1 percent growth), healthcare and social work (7.7 percent), information and communication (5.9 percent), professional and technical services (4.9 percent), real estate (4.8 percent), and wholesale and retail trade (2.6 percent). Cabinet and economic ministers highlighted that broad-based gains across high-value-added industries, paired with expanding trade via the country’s Comprehensive Economic Partnership Agreements (CEPAs), continue to reinforce the UAE’s positioning as a global business hub. Non-oil foreign trade also saw significant momentum, with non-oil exports surging 23.9 percent in the first half of 2026 to reach AED452.8 billion.

To support this growth, the UAE is currently updating its statistical infrastructure through a Comprehensive GDP Revision Programme in collaboration with international organizations. The initiative incorporates new data sources, includes free zone activities within statistical scopes, and aligns local methodologies with international standards. Future time series data will be updated upon the completion of the revision, while the Q1 2026 results reflect the existing statistical framework.

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