UAE Economy Grows 3% in Q1 2026 as Non-Oil Sector Strengthens to 79.4% Contribution
Abu Dhabi: The United Arab Emirates (UAE) has reported a year-on-year growth of 3% in its real gross domestic product (GDP) for the first quarter of 2026, reaching AED 485 billion at constant prices. Notably, the non-oil sector expanded by 4.8%, increasing its contribution to 79.4% of the national economy, according to data from the Federal Competitiveness and Statistics Centre. This growth underscores the resilience of the UAE economy amid regional challenges, which had limited effects on the overall growth trajectory.
The rise in non-oil activities from 78.0% in 2025 to 79.4% in Q1 2026 highlights the effectiveness of the UAE’s economic diversification strategy and its alignment with the ‘We the UAE 2031’ Vision. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, emphasized that these results reflect the successful implementation of national development policies designed to bolster non-oil sectors.
“The Q1 2026 results reflect the ability of the UAE’s government work system to translate the wise leadership’s strategic vision into tangible economic results that serve people and the future,” he stated. He noted that the growth driven by the non-oil economy, particularly in finance, trade, and information technology, is the result of integrated government policies working cohesively towards a common goal: establishing the UAE as a global leader in competitiveness and excellence.
Financial Sector Leads Growth
Among the key sectors, financial and insurance activities recorded the most significant growth, expanding by 17.3% year-on-year. Other sectors showing notable growth include:
- Human health and social work activities: 7.7%
- Information and communication: 5.9%
- Professional, scientific, and technical activities, along with administrative and support services: 4.9%
- Real estate activities: 4.8%
- Public administration, defense, and compulsory social security: 4.5%
- Wholesale and retail trade: 2.6%
Financial and insurance activities contributed the most to overall economic growth, accounting for 2.44 percentage points. This was followed by construction (1.04 percentage points), wholesale and retail trade (0.42 percentage points), real estate (0.36 percentage points), and professional and technical services (0.29 percentage points).
Diversification Strategy Delivering Results
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, stated that the latest figures reflect the strength and competitiveness of the national economy. “The results of the first quarter of 2026 demonstrate the robustness of the national economy’s performance and its ability to sustain growth and enhance its competitiveness at both the regional and global levels,” he remarked.
He noted that non-oil sectors continue to lead growth, raising their contribution to 79.4% of GDP, which supports the UAE’s sustainable economic development and reinforces its position as a global business and investment hub. Al Marri added that this performance indicates the UAE’s transition towards a more diversified and sustainable economic model, capable of adapting to global developments while aiming to expand the national economy to AED 3 trillion by 2031.
Trade Expansion Supports Growth
The strong performance of non-oil sectors coincides with ongoing expansion in the UAE’s foreign trade, bolstered by the country’s network of Comprehensive Economic Partnership Agreements (CEPAs). Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, stated that the GDP results affirm the success of the UAE’s strategy to enhance global trade and investment partnerships.
“The UAE’s GDP growth results for the first quarter of 2026 reflect the success of the wise leadership’s vision in continuing to build a more open and globally competitive economy,” he noted. He emphasized that CEPAs are opening new markets for UAE exports while strengthening the manufacturing, trade, and logistics sectors.
According to Al Zeyoudi, non-oil exports surged by 23.9% during the first half of 2026, reaching AED 452.8 billion, marking the fastest growth among the components of the UAE’s foreign trade. This increase underscores the growing role of trade openness in stimulating domestic production and enhancing the competitiveness of industrial and service sectors, which are essential to the country’s diversification agenda.
Statistical System Upgrade Underway
The UAE is also undertaking a comprehensive review of its GDP accounts as part of a broader transformation of the national statistical system. This program includes integrating new data sources, incorporating free zones within statistical coverage, and aligning methodologies with international standards and best practices.
Officials indicated that current GDP figures are based on existing statistical methodologies, and historical data series will be updated following the completion of the Comprehensive GDP Revision Programme. This initiative is being executed in collaboration with specialized international institutions to enhance the accuracy, reliability, and international comparability of the UAE’s economic statistics.
For further details, visit the source: www.emirates247.com.
Read all the latest developments and breaking updates in the Latest News section.
Published on 2026-08-04 12:59:00 • By the Editorial Desk
