UAE economy grows 3% as non-oil sectors drive Q1 2026 expansion

ABU DHABI, United Arab Emirates — The UAE’s economy expanded by 3% during the first quarter of 2026, with real gross domestic product reaching Dh485 billion, as non-oil industries continued to strengthen their contribution to the country’s economic growth.

New figures released by the Federal Competitiveness and Statistics Centre showed non-oil GDP increased by 4.8% compared with the same period last year, raising its share of the national economy to 79.4%, up from 78% in the first quarter of 2025.

The data indicates the UAE maintained steady economic momentum despite regional challenges during the quarter, with growth supported by continued diversification across multiple sectors.

Finance and construction lead growth

Financial and insurance activities recorded the strongest annual growth at 17.3%, making the largest contribution to non-oil economic expansion during the quarter.

Construction followed with 8.1% growth, while human health and social work activities increased by 7.7%. Information and communication services expanded 5.9%, and professional, scientific, technical, administrative and support services rose 4.9%.

Real estate activities grew 4.8%, public administration, defense and compulsory social security increased 4.5%, while wholesale and retail trade posted 2.6% growth.

According to the statistics centre, finance and insurance contributed 2.44 percentage points to overall non-oil GDP growth, followed by construction (1.04 percentage points), wholesale and retail trade (0.42 percentage points) and real estate (0.36 percentage points).

Diversification remains central to growth

The results underline the UAE’s continued focus on reducing reliance on hydrocarbons by expanding sectors including finance, technology, construction, healthcare and professional services.

Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, said the sustained growth of non-oil industries reflects long-term government policies aimed at strengthening competitiveness and supporting future economic development.

The government will continue working with public and private sector partners to ensure economic growth creates opportunities for citizens, residents and investors, he said.

Dh3 trillion economy target

Minister of Economy and Tourism Abdulla bin Touq Al Marri said the latest figures demonstrate the resilience of the UAE economy and the continued success of diversification initiatives.

The country’s We the UAE 2031 vision aims to increase the size of the national economy to Dh3 trillion by the end of the decade while reinforcing the UAE’s position as a global destination for business and investment.

Trade continues to strengthen

Separately, the Ministry of Economy said non-oil exports rose 23.9% during the first half of 2026 to Dh452.8 billion, marking the fastest growth among the country’s foreign trade components.

Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said the UAE’s Comprehensive Economic Partnership Agreements (CEPAs) continue to expand market access for national exports and support growth across non-oil industries.

Officials also confirmed that work is continuing on a comprehensive update of the UAE’s GDP accounting methodology, including expanded coverage of free zones and additional data sources aligned with international statistical standards.

More information on the UAE’s economic indicators is available through the Federal Competitiveness and Statistics Centre and the Ministry of Economy.

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