Dubai, UAE — The UAE’s economy grew 3 percent in the first quarter of 2026 as robust expansion in non-oil sectors offset regional challenges, with non-oil activities accounting for nearly four-fifths of gross domestic product, official data showed on Tuesday.
Real gross domestic product rose to AED485 billion ($132.0 billion) at constant prices in the January-March period, while non-oil GDP expanded 4.8 percent, increasing its share of the economy to 79.4 percent from 78.0 percent a year earlier, according to the Federal Competitiveness and Statistics Centre.
The figures underscore the UAE’s continued push to diversify its economy away from hydrocarbons under its “We the UAE 2031” strategy, despite regional tensions during the quarter that officials said affected only a limited number of activities.
Financial and insurance activities led growth with a 17.3 percent annual expansion, followed by construction at 8.1 percent, human health and social work at 7.7 percent, information and communication at 5.9 percent, and professional, scientific and technical activities together with administrative and support services at 4.9 percent.
Real estate activities grew 4.8 percent, public administration, defence and compulsory social security rose 4.5 percent, while wholesale and retail trade expanded 2.6 percent.
Financial and insurance activities made the largest contribution to overall GDP growth, accounting for 2.44 percentage points, followed by construction with 1.04 percentage points and wholesale and retail trade with 0.42 percentage points.
Minister of Cabinet Affairs Mohammad bin Abdullah Al Gergawi said the results demonstrated the success of government policies aimed at increasing the contribution of non-oil sectors, while Minister of Economy and Tourism Abdulla bin Touq Al Marri said the figures reflected the resilience and competitiveness of the national economy.
Officials also pointed to the role of the UAE’s Comprehensive Economic Partnership Agreements in supporting non-oil trade. Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said the agreements continued to open new markets for exports and strengthen manufacturing, trade and logistics.
The government said non-oil exports rose 23.9 percent in the first half of 2026 to AED452.8 billion ($123.3 billion), recording the fastest growth among the components of the UAE’s foreign trade.
The UAE is also undertaking a comprehensive revision of its GDP accounts, including the integration of new data sources, the inclusion of free zones in statistical coverage and the alignment of methodologies with international standards. The current results are based on the existing methodology and historical data will be updated once the programme is completed.
