- The UAE economy grew 0.4% in the first half of 2026, reaching 961.9 billion dirhams ($262 billion), driven primarily by non-oil sector expansion.
- Non-oil activities increased by 1.8% and comprised 79.2% of GDP, up from 78.1% a year earlier, showcasing the country’s economic diversification.
October 11, 2026, 15:23
JEDDAH: The UAE economy posted a 0.4% year-on-year growth in the first half of 2026, reaching 961.9 billion dirhams ($262 billion), according to data from the Federal Competitiveness and Statistics Centre. Non-oil sectors fueled the expansion, registering a 1.8% increase and contributing 79.2% to GDP, compared to 78.1% in the same period of 2025. Oil-related activities accounted for the remaining 20.8% of the economy.
Despite the overall growth, the second quarter witnessed a 2.1% contraction in real GDP, with output falling to 476.9 billion dirhams. Non-oil activity also declined 1.1% during the period, as regional instability and travel disruptions impacted tourism, transportation, and trade sectors, according to official sources.
The data underscores the UAE’s strategic shift toward economic diversification, with non-oil industries continuing to expand their share of the national economy despite external headwinds. International institutions like the International Monetary Fund have noted the UAE’s policy resilience in navigating regional uncertainties, though they anticipate 2026 growth will slightly lag behind 2025 due to ongoing challenges in key sectors.
Financial and insurance services emerged as the leading contributor to non-oil growth, expanding 14.8% in the first half, followed by information and communication activities at 7.3%. Health and social work rose 6%, construction grew 5.1%, and government activities increased 3.6%, while real estate registered 2.3% growth.
Trade remained the largest non-oil GDP component at 16.2%, followed by financial services (15.2%), construction (13.1%), manufacturing (11.8%), and real estate (7.9%). These figures highlight the UAE’s progress in strengthening its economic foundations through sectoral diversification and policy initiatives aimed at enhancing long-term stability.
