UAE economy grows 3% in Q1 2026 as non-oil sector drives expansion

The UAE’s economy expanded by 3% in the first quarter of 2026, with real gross domestic product (GDP) reaching AED485 billion, underscoring the country’s economic resilience despite ongoing regional challenges.

According to figures released by the Federal Competitiveness and Statistics Center, non-oil GDP grew 4.8% year over year, increasing its share of the national economy to 79.4% and reinforcing the UAE’s continued progress in economic diversification.

Minister of Cabinet Affairs Mohammad bin Abdullah Al Gergawi said the latest figures reflect the success of the UAE’s long-term development strategy, highlighting the growing contribution of key non-oil sectors, including finance, trade, and information and communications technology (ICT).

Minister of Economy and Tourism Abdulla bin Touq Al Marri said the results demonstrate the strength of the national economy and its ability to sustain steady growth amid global and regional uncertainty.

Financial and insurance activities recorded the strongest growth among all sectors, expanding 17.3% compared with the same period last year. Construction followed with growth of 8.1%, while human health and social work activities increased 7.7%. The information and communication sector grew 5.9%, while professional, scientific, and technical activities, along with administrative and support services, expanded 4.9%.

Other sectors also posted solid gains, with real estate growing 4.8%, public administration, defense, and compulsory social security increasing 4.5%, and wholesale and retail trade expanding 2.6%.

Financial and insurance activities also made the largest contribution to overall GDP growth, adding 2.44 percentage points. Construction contributed 1.04 percentage points, followed by wholesale and retail trade at 0.42 percentage points, real estate at 0.36 percentage points, and professional, scientific, and technical activities, along with administrative and support services, at 0.29 percentage points.

The latest data highlights the UAE’s continued momentum in building a more diversified economy, with non-oil industries playing an increasingly significant role in driving sustainable growth.