The United Arab Emirates’ economy demonstrated robust growth in the first quarter of 2026, with real GDP increasing by 3% compared to the previous year, reaching AED485 billion in constant prices. Notably, the non-oil sector surged by 4.8%, now contributing 79.4% to the national economy, underscoring the country’s successful diversification efforts.
Non-Oil Sector Drives Economic Growth
Data from the Federal Competitiveness and Statistics Centre highlights the resilience of the UAE economy, even amid regional challenges. The non-oil sector’s growing influence, rising from 78.0% in 2025 to 79.4% in Q1 2026, reflects the UAE’s strategic economic policies aimed at diversification and sustainable growth. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, emphasized the effectiveness of these policies in achieving tangible results aligned with the ‘We the UAE 2031’ Vision.
Key Sectors Fuel Expansion
The financial and insurance sectors spearheaded growth with a remarkable 17.3% year-on-year increase. Other sectors contributing significantly include construction (8.1%), human health and social work activities (7.7%), and information and communication (5.9%). Professional, scientific, and technical activities, along with administrative and support services, grew by 4.9%, while real estate saw a 4.8% rise.
These sectors collectively propelled economic growth, with financial and insurance activities contributing 2.44 percentage points to overall growth, followed by construction at 1.04 percentage points. The diversification strategy continues to yield positive outcomes, reinforcing the UAE’s economic standing globally.
Diversification Strategy: A Proven Success
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, noted that the Q1 results not only demonstrate the national economy’s strength but also its competitive edge on a global scale. The increasing share of non-oil sectors in GDP supports the UAE’s aim for sustainable economic development and its ambition to expand the economy to AED3 trillion by 2031.
Trade Expansion as a Growth Catalyst
The UAE’s foreign trade continues to bolster economic performance, facilitated by Comprehensive Economic Partnership Agreements (CEPAs). Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, highlighted that these agreements have been instrumental in opening new markets for UAE exports, strengthening the manufacturing, trade, and logistics sectors. The first half of 2026 saw non-oil exports skyrocket by 23.9% to AED452.8 billion, showcasing the dynamic role of trade in the UAE’s economic strategy.
Advancing the Statistical Framework
The UAE is undertaking a significant revision of its GDP accounts, as part of a broader effort to enhance the national statistical system. This transformation involves integrating new data sources and aligning methodologies with international standards to boost the accuracy and reliability of economic data. This initiative, conducted in partnership with international organizations, aims to refine economic statistics, ensuring their global comparability and credibility.
