The United Arab Emirates economy expanded by 3 percent year on year in the first quarter of 2026, reaching AED485 billion at constant prices, as robust momentum across non-oil industries shielded the national economy from broader regional headwinds.
Data released by the Federal Competitiveness and Statistics Centre shows that non-oil gross domestic product grew by 4.8 percent year on year during the first three months of the year. The surge pushed the overall economic contribution of non-hydrocarbon activities to 79.4 percent, up from 78.0 percent recorded across 2025, cementing the country’s multi-year structural transition away from oil dependencies.
For regional capital markets, multinational corporate hubs, and institutional investors in key regional and global centers like Dubai, Singapore, and London, the expanding share of high-value non-oil sectors confirms the long-term durability of the UAE market. Financial services, trade networks, and construction are absorbing localized volatility, providing international business entities with sustained commercial growth across the wider Middle East.
Integrated Government Frameworks Translate Strategic Goals into Economic Output
The acceleration across non-oil sectors highlights the direct alignment between state development policies and public-private sector integration, moving national benchmarks closer to the goals set under the We the UAE 2031 vision.
Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, said the results reflected the success of development policies aimed at increasing the contribution of non-oil sectors to the national economy.
“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. The growth led by the non-oil economy — through sectors such as finance, trade, and information, technology and communications, which contributed significantly to non-oil GDP growth in the first quarter of 2026, raising its contribution to 79.4 percent — is not an isolated figure, but the outcome of integrated government policies and initiatives working as one system towards one goal: consolidating the UAE’s standing as a global leader in competitiveness, excellence and future readiness,” Al Gergawi said.
“We continue to work with our partners in the government and private sectors to ensure that economic performance remains a true reflection of the quality of life and the opportunities the UAE provides for its citizens, residents and investors from around the world,” he added.
Financial Services and Construction Lead Broad Sectoral Expansion
Growth across the non-oil landscape was led by financial and insurance activities, which jumped 17.3 percent year on year, generating the single largest sector contribution of 2.44 percentage points to overall GDP.
Construction followed with an 8.1 percent expansion, adding 1.04 percentage points to growth, while human health and social work activities rose 7.7 percent. The information and communication technology sector expanded 5.9 percent, while professional, scientific, technical, and support services logged a 4.9 percent increase. Wholesale and retail trade expanded 2.6 percent, contributing 0.42 percentage points, real estate activities gained 4.8 percent to contribute 0.36 percentage points, and public administration and defense grew by 4.5 percent.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the results reflect the robustness of national economic performance and its ability to sustain growth.
“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,” he said.
“Non-oil sectors continue to lead growth, raising their contribution to 79.4 percent of GDP, supporting the UAE’s sustainable economic growth and reinforcing its position as a global hub for business and investment,” he added.
Al Marri highlighted that the performance confirms the resilience of the local business landscape as the nation works toward its long-term target of expanding total gross domestic product to AED3 trillion by 2031.
Bilateral Trade Agreements Accelerate Export Surge in First Half of 2026
The expansion of non-oil GDP parallels a sharp acceleration in the country’s foreign trade balance, bolstered by a network of Comprehensive Economic Partnership Agreements (CEPAs) that have opened new export destinations across Asia, Africa, and Latin America.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, said, “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. It confirms the soundness of the approach based on expanding trade and investment partnerships and strengthening the UAE’s integration into the global economy through the Comprehensive Economic Partnership Agreements program.”
“This opens new horizons for growth, reinforces the UAE’s position as a global gateway for world trade, and enhances the country’s attractiveness to high-quality investments,” Al Zeyoudi said.
“This approach is clearly reflected in the record performance of non-oil foreign trade, as the Comprehensive Economic Partnership Agreements continue to open new markets for UAE exports of goods and services, supporting the growth of non-oil sectors, increasing their contribution to GDP and advancing sustainable economic development,” he added.
Non-oil exports rose 23.9 percent during the first half of 2026 to reach AED452.8 billion, representing the fastest-growing segment within the national foreign trade framework and highlighting the role of global market integration in driving domestic industrial output.
Statistical Refinements and Future Outlook
To align with top international reporting standards, national authorities are undertaking a comprehensive revision of GDP accounting practices. The program involves integrating updated administrative data streams, broadening statistical coverage to include free zones, and coordinating with specialized international institutions to harmonize measurement criteria.
The announced first-quarter results utilize the current statistical framework, with historical time series slated for formal updating upon completion of the revision project.
Looking ahead, the combination of double-digit financial growth, expanding trade access, and steady non-hydrocarbon momentum positions the UAE to maintain its target trajectory. As regulatory adjustments like small business corporate tax relief filter through the corporate ecosystem, market fundamentals point to sustained non-oil growth across the remainder of 2026.
