UAE GDP Q1 2026: Economy Grows 3% as Non‑Oil Sectors Reach 79.4% Share
UAE GDP Q1 2026 rose 3% to AED 485 billion at constant prices, driven by robust expansion in non‑oil activity that lifted the non‑oil share to 79.4%. The Federal Competitiveness and Statistics Centre reported the gains, noting that non‑oil GDP expanded 4.8% in the same quarter. Policymakers said the results reflect sustained diversification and resilience despite regional headwinds in the period.
GDP Growth and Non‑Oil Momentum
The UAE recorded real GDP growth of 3% in the first quarter of 2026, reaching AED 485 billion at constant prices. Non‑oil activity led the recovery, expanding 4.8% and increasing its contribution to the national economy to 79.4% from 78.0 a year earlier. Officials highlighted that the performance underscores the success of economic policies aimed at broadening the productive base away from hydrocarbons.
Sectoral Winners Driving Expansion
Several high‑value sectors delivered notable gains in Q1 2026, with financial and insurance activities posting the strongest rise at 17.3%. Construction advanced by 8.1%, while human health and social services grew 7.7%, reflecting continued public and private investment in infrastructure and wellbeing. Information and communication rose by 5.9%, and professional, scientific and technical services along with administrative support activities expanded by 4.9%.
Contribution Breakdown to Non‑Oil Growth
On a contribution basis, financial and insurance activities added the largest share to non‑oil GDP growth, contributing 2.44 percentage points. Construction accounted for 1.04 points, wholesale and retail trade contributed 0.42 points, and real estate added 0.36 points. Professional and administrative services together made a 0.29 point contribution, indicating that growth is both broadening and becoming more aligned with strategic investment priorities.
Trade Performance and Export Gains
Trade and external sectors continued to support expansion, with non‑oil exports showing particularly strong momentum. Data for the first half of 2026 indicate non‑oil exports rose 23.9% to AED 452.8 billion, reflecting higher demand and greater market access. Authorities linked these outcomes to the network of Comprehensive Economic Partnership Agreements that have opened new markets for UAE goods and services.
Policy Response and Strategic Vision
Senior ministers framed the Q1 results as evidence that UAE policy is translating into measurable economic outcomes. The Minister of Cabinet Affairs, Mohammed Abdullah Al Gergawi, said the growth driven by non‑oil sectors reflects coordinated government initiatives to build a knowledge‑based, innovation‑led and sustainable economy. The Minister of Economy and Tourism, Abdullah bin Touq Al Marri, emphasized that stronger non‑oil performance reinforces the UAE’s competitiveness regionally and globally.
Statistical Revision and Methodology Update
The authorities also announced an ongoing comprehensive review of national GDP accounts to improve accuracy and coverage. The review includes integration of new data sources, the formal inclusion of free zones within the national statistical perimeter, and alignment with international best practices. Officials said time series will be updated once the review is complete, and that the exercise is being conducted in technical partnership with specialised international organisations.
Economic analysts welcomed the statistical upgrade, saying it should provide a more complete picture of the UAE economy and better support policy decisions. They noted that including free zones and harmonising methodologies will likely affect historic comparisons but will enhance international comparability. The Federal Competitiveness and Statistics Centre will continue to publish official data under the current methodology until the revised series are finalised.
UAE business leaders said the Q1 figures were consistent with trends observed on the ground, from rising financial services activity to stronger industrial and logistics output. They pointed to sustained public and private investment, improved market access through trade agreements, and ongoing regulatory reforms as the main enablers of growth. The combined effect, they argued, is creating a wider and more resilient set of growth drivers for the national economy.
Looking ahead, policymakers reiterated their commitment to the goals set out in the “We the Emirates 2031” vision, including expanding the size of the economy and increasing the role of high‑value industries. They pledged continued coordination between government and private sector partners to maintain momentum and to ensure that economic performance translates into improved quality of life and wider opportunities for residents and investors.
