UAE economy growth 2026 reached 0.4 percent in the first half of the year, with real gross domestic product rising to Dh961.9 billion at constant prices, according to data from the Federal Competitiveness and Statistics Centre.
The latest figures show that non-oil activity continued to play the dominant role in the national economy. Non-oil GDP grew by 1.8 percent compared with the same period in 2025, lifting its share of total real GDP to 79.2 percent from 78.1 percent a year earlier.
The results underline the growing contribution of sectors outside hydrocarbons even as second-quarter activity weakened amid regional disruptions affecting travel, tourism and trade.
UAE Economy Growth 2026 Driven by Non-Oil Sectors
The latest UAE economy growth 2026 data show that economic diversification remains central to the country’s performance.
Non-oil activities accounted for nearly four-fifths of total GDP during the first six months of the year, while oil activities represented 20.8 percent.
Trade, finance, construction, manufacturing and real estate were among the largest contributors to non-oil economic activity.
The figures also build on first-quarter data showing that non-oil GDP had expanded 4.8 percent and accounted for 79.4 percent of output during the opening three months of the year.
1. Real GDP Reaches Dh961.9 Billion
The headline figure for the first half of 2026 was Dh961.9 billion in real GDP.
That represented year-on-year growth of 0.4 percent.
While the pace was modest, the positive first-half result indicates that gains earlier in the year were sufficient to offset weaker conditions in the second quarter.
The UAE economy growth 2026 figures therefore point to an economy that continued expanding overall despite a more difficult regional environment.
The Federal Competitiveness and Statistics Centre described the estimates as preliminary and said updated historical GDP series will be released after completion of the UAE Comprehensive GDP Revision Programme.
2. Non-Oil GDP Grows 1.8 Percent
Non-oil activity was the stronger side of the economy during the first half.
The sector expanded 1.8 percent and increased its contribution to total GDP to 79.2 percent.
This reinforces the long-term shift toward a more diversified economic structure, with growth increasingly spread across services, construction, manufacturing and other sectors.
The wider UAE economy growth 2026 story is therefore less about headline GDP alone and more about how much of national output now comes from industries outside oil and gas.
The UAE has also continued expanding non-oil trade. Separate government-linked reporting showed that non-oil foreign trade exceeded Dh1.9 trillion in the first half of 2026.
3. Finance Leads Major Sector Growth
Financial and insurance activities recorded the strongest growth among major sectors during the first half, rising 14.8 percent.
Information and communication activities followed with growth of 7.3 percent, while health and social work expanded 6 percent.
Construction grew 5.1 percent, government activities increased 3.6 percent and real estate activity rose 2.3 percent.
These figures show that the strongest momentum was concentrated in service and knowledge-intensive sectors rather than traditional hydrocarbon activity.
That diversification is a key factor behind the resilience reflected in the UAE economy growth 2026 data.
4. Trade Remains Largest Non-Oil Contributor
In terms of contribution to non-oil GDP, trade remained the largest sector.
Trade accounted for 16.2 percent of non-oil activity during the first half of the year.
Financial and insurance activities followed at 15.2 percent, with construction contributing 13.1 percent.
Manufacturing accounted for 11.8 percent and real estate activities contributed 7.9 percent.
Together, these sectors illustrate the breadth of the UAE’s non-oil economic base.
The figures also suggest that the country’s diversification strategy is increasingly supported by multiple industries rather than relying on a single alternative growth engine.
5. Second Quarter Shows Clear Slowdown
The first-half expansion should be viewed alongside a noticeably weaker second quarter.
Real GDP in Q2 reached Dh476.9 billion, representing a 2.1 percent decline from the same quarter in 2025.
Non-oil activities also contracted by 1.1 percent during the quarter.
According to the FCSC data reported by Gulf News, tourism, transport and trade were among the sectors affected by regional developments and disruptions to travel.
This means the UAE economy growth 2026 picture is mixed: the first half remained positive overall, but momentum slowed considerably between the first and second quarters.
Regional Conditions Affect Activity
The second-quarter contraction highlights how exposed parts of the UAE economy remain to wider regional developments.
Tourism and aviation are important drivers of domestic activity, while the UAE’s role as a global trade and logistics hub means disruptions to transport routes can quickly affect commerce.
The Central Bank had already forecast slower economic growth for 2026, citing regional developments affecting trade, shipping, tourism and business confidence.
Even so, continued expansion in financial services, construction and digital sectors helped support the broader economy during the first half.
Diversification Remains Central
The latest UAE economy growth 2026 figures reinforce the importance of economic diversification to the country’s long-term strategy.
With non-oil activities now contributing 79.2 percent of real GDP, the structure of the economy has moved substantially beyond hydrocarbons.
The Arabian Buzz has previously examined how the UAE and Saudi Arabia continue to dominate investment flows across the Gulf in its analysis of MENA’s evolving funding landscape.
The first-half numbers suggest that diversification is providing some resilience even when external shocks weigh on sectors such as tourism and transport.
However, the second-quarter decline shows that growth is not uniform and that regional conditions remain an important risk.
The next phase of the UAE economy growth 2026 story will depend on whether activity strengthens again in the second half, particularly across trade, tourism and transport.
Source: Gulf News — original GDP report
UAE economy reaches Dh961.9 billion in H1 2026
UAE official statistics portal
UAE.Stat national statistics portal
