UAE GDP growth: Q1 2026 real GDP rises 3% to AED 485bn as non‑oil share hits 79.4%
UAE GDP growth: Q1 2026 real GDP up 3% to AED 485bn; non-oil sector share reaches 79.4% driven by finance, construction and 23.9% jump in non-oil exports.
The UAE recorded real GDP growth of 3.0% in the first quarter of 2026, with the economy valued at AED 485 billion at constant prices, the Federal Competitiveness and Statistics Center reported. UAE GDP growth in Q1 was underpinned by a 4.8% expansion in non‑oil activity, lifting the non‑oil sector’s contribution to 79.4% of national output. Officials said the results demonstrate the economy’s resilience despite regional challenges that affected only a limited set of activities.
Q1 2026 real GDP reaches AED 485 billion
The FCSC data show the headline expansion was driven primarily by non‑oil sectors, which continued to outperform oil-related activity in the quarter. Real GDP measured at constant prices reached AED 485 billion, a 3% increase year‑on‑year. Authorities highlighted that the growth was achieved even as some regional disruptions constrained activity in isolated areas.
Non‑oil sectors drive 79.4% share of economy
Non‑oil GDP increased by 4.8% in Q1 2026, raising its share of total output to 79.4%, up from 78.0% a year earlier. This change reflects the impact of sustained diversification policies and government initiatives to widen the base of productive activities. Ministers linked the shift to strategic investments in knowledge, innovation and sustainable industries aligned with the “We the UAE 2031” vision.
Finance and insurance lead growth and contributions
Financial and insurance activities recorded the strongest pace of expansion, with growth of 17.3% in the quarter. That sector alone contributed 2.44 percentage points to non‑oil GDP growth, making it the single largest driver of the increase. Other notable contributors included construction, which grew 8.1% and added 1.04 percentage points, and wholesale and retail trade, which contributed 0.42 percentage points.
Broader sectoral gains widen growth base
Several additional sectors registered robust performance, underscoring the breadth of the recovery. Health and social work activities rose by 7.7%, while information and communications increased by 5.9%, and professional, scientific and technical services together with administrative support services grew by 4.9%. Real estate expanded by 4.8% and public administration and defense recorded a 4.5% increase, signaling improvements across both private and public domains.
Trade expansion and non‑oil exports accelerate momentum
External trade played a significant role in supporting non‑oil expansion, with non‑oil exports surging 23.9% in the first half of 2026 to AED 452.8 billion. Ministers credited a network of comprehensive economic partnership agreements for opening new markets and boosting demand for UAE goods and services. The government said stronger exports amplified activity in manufacturing, logistics and trading services, reinforcing the country’s position as a regional trade hub.
Statistical review to include free zones and new data sources
Authorities are undertaking a comprehensive revision of GDP accounting to integrate new data sources and include free zones within statistical coverage. The review, conducted with international technical partners, aims to harmonise methodologies with global best practices and improve the accuracy and comparability of national accounts. Officials stated the update will result in revised time series once the exercise is completed, offering a more complete picture of economic size and structure.
Ministers portrayed the Q1 performance as validation of long‑standing policy priorities. The Minister of Cabinet Affairs said the results reflect the success of development strategies that emphasize non‑oil activity, while the Minister of Economy and Tourism highlighted strengthening competitiveness and sustainable growth. The Minister of State for Foreign Trade noted the trade agreements and open economic stance have materially supported export growth and investment attraction.
The FCSC stressed that the published figures follow the current statistical methodology, and that updated series will be released after the GDP review concludes. Policymakers and market participants welcomed the snapshot as evidence of widening growth drivers and structural transformation, while also noting that forthcoming methodological changes could alter historical comparisons.
The Q1 2026 results point to a UAE economy increasingly led by diversified, non‑oil sectors, with finance, construction, trade and exports central to near‑term momentum and the nation’s long‑term objectives.
