UAE Economy Expands 3% to Dh485 Billion in Q1 2026
The UAE economy grew by 3% in the first quarter of 2026, with real gross domestic product reaching Dh485 billion at constant prices. This growth was driven by non-oil sectors, which expanded by 4.8% and now account for 79.4% of the country’s GDP. According to data from the Federal Competitiveness and Statistics Centre, financial and insurance activities were the fastest-growing part of the economy, expanding by 17.3% compared to the same period last year.
The growth in non-oil sectors was led by financial and insurance activities, which contributed 2.44 percentage points to the increase. Construction activity grew by 8.1%, followed by human health and social work activities at 7.7%. Information and communication expanded by 5.9%, while professional, scientific and technical activities together with administrative and support services grew by 4.9%. The UAE’s non-oil exports also grew by 23.9% during the first half of 2026, reaching Dh452.8 billion.
The UAE government has set a target to double the size of the national economy to Dh3 trillion by 2031, as part of the We the UAE 2031 Vision. Minister of Economy and Tourism, Abdulla bin Touq Al Marri, said that the results of the first quarter of 2026 reflect the robustness of the national economy’s performance and its ability to sustain growth and enhance its competitiveness. The government will continue to work with private and public-sector partners to ensure economic performance translates into opportunities for citizens, residents, and investors.
The UAE’s economic growth is expected to continue, driven by its diversification strategy and strong growth in key sectors. The country’s non-oil economy is expected to play a major role in achieving the government’s target of Dh3 trillion by 2031. With its growing non-oil sectors and increasing exports, the UAE is well-positioned to maintain its position as a business and investment center in the region.
