UAE GDP grows 3% to Dh485 billion in Q1 2026, non-oil economy expands 4.8%

Dubai: The UAE economy grew by 3% in the first quarter of 2026, with real gross domestic product reaching Dh485 billion at constant prices, compared with Dh470.9 billion during the same period last year.

Non-oil GDP expanded by 4.8%, raising its contribution to the national economy to 79.4% from 78% in the first quarter of 2025, according to data from the Federal Competitiveness and Statistics Centre.

Growth was recorded despite regional challenges during the quarter, with the impact confined to a limited number of activities and the overall economic growth trajectory remaining intact.

Finance records fastest growth

Financial and insurance activities were the fastest-growing part of the economy during the quarter, expanding by 17.3% compared with the same period last year.

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%.

Real estate activity increased by 4.8%, public administration, defence and compulsory social security grew by 4.5%, and wholesale and retail trade expanded by 2.6%.

Financial and insurance activities made the largest contribution to non-oil growth, accounting for 2.44 percentage points of the increase. Construction contributed 1.04 percentage points, followed by wholesale and retail trade at 0.42 percentage points and real estate at 0.36 percentage points.

Professional, scientific and technical activities together with administrative services contributed 0.29 percentage points.

Al Gergawi said the government would continue working with private and public-sector partners to ensure economic performance translated into opportunities for citizens, residents and investors.

UAE targets Dh3 trillion economy

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said non-oil sectors continued to lead economic growth and support the country’s position as a business and investment centre.

“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 at both the regional and global levels, embodying the success of the vision and directives of the wise leadership, as well as the policies and legislation adopted by the country to advance economic diversification,” Al Marri said.

The We the UAE 2031 Vision seeks to double the size of the national economy to Dh3 trillion by 2031.

Non-oil exports reach Dh452.8 billion

Non-oil exports grew by 23.9% during the first half of 2026 to reach Dh452.8 billion, recording the highest growth rate among the components of the UAE’s foreign trade.

Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, said the Comprehensive Economic Partnership Agreements programme had opened new markets for UAE goods and services.

The UAE is also carrying out a comprehensive revision of its GDP accounts, including the addition of new data sources, the inclusion of free zones within statistical coverage and the alignment of methodologies with international standards.

The first-quarter results are based on the current methodology, with the historical series set to be updated following the completion of the GDP revision programme.