UAE economy grows by 3% in Q1 2026 driven by strong non-oil sector performance

The United Arab Emirates' economy demonstrated robust growth in the first quarter of 2026, with real GDP increasing by 3% to Dhs485 billion at constant prices. This expansion was largely fueled by a strong performance in the non-oil sector, which grew by 4.8% and now accounts for 79.4% of the national economy.

These figures highlight the resilience of the UAE's economy and the effectiveness of its diversification strategies, particularly in light of regional challenges during the quarter. The "We the UAE 2031" Vision appears to be yielding tangible results, as the contribution of non-oil activities to GDP has risen from 78.0% in 2025.

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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.

Mohammad Bin Abdullah Al Gergawi, Minister of Cabinet Affairs, stated that the results validate the government's development policies. He emphasized that the growth in non-oil sectors, including finance, trade, and information technology, is the outcome of integrated government efforts aimed at positioning the UAE as a global leader in competitiveness and future readiness.

Several sectors significantly contributed to this growth. Financial and insurance activities saw a remarkable 17.3% year-on-year expansion. Other key contributors included construction (8.1%), human health and social work (7.7%), information and communication (5.9%), and professional, scientific, and technical activities (4.9%). Real estate, public administration, and wholesale and retail trade also showed positive growth, indicating a broad-based economic upswing.

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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.