UAE Non-Oil Sector Drives 3% GDP Growth in Q1 2026
The UAE’s real gross domestic product (GDP) grew by 3% year-on-year in the first quarter of 2026, reaching AED 485 billion at constant prices. Local businesses and investors are benefiting from this growth, as the non-oil sector expanded by 4.8%, increasing its contribution to 79.4% of the national economy. The Federal Competitiveness and Statistics Centre released these results, underscoring the resilience of the UAE economy and the continued strength of non-oil sectors despite regional challenges.
The growth was led by the financial and insurance activities sector, which recorded the strongest growth at 17.3% year-on-year, followed by construction at 8.1%, and information and communication at 5.9%. The non-oil economy’s expansion is a result of the UAE’s economic diversification strategy, which aims to reduce dependence on oil exports and promote sustainable economic growth. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, stated that the Q1 2026 results reflect the effectiveness of national development policies aimed at strengthening non-oil sectors.
The UAE’s foreign trade also continued to expand, supported by the country’s network of Comprehensive Economic Partnership Agreements (CEPAs). Non-oil exports surged 23.9% during the first half of 2026 to AED 452.8 billion, representing the fastest growth among the components of the UAE’s foreign trade. This increase highlights the growing role of trade openness in stimulating domestic production and enhancing the competitiveness of industrial and service sectors.
The UAE’s economic growth in Q1 2026 is comparable to its growth in previous years, with the non-oil sector playing an increasingly important role in driving the economy. The Federal Competitiveness and Statistics Centre’s data release is part of the UAE’s efforts to strengthen its statistical system and provide more accurate and timely data on the country’s economic performance.
