UAE's real GDP rose 0.4% to Dh961.9 billion in H1 2026, led by a 1.8% rise in non-oil activity, though Q2 saw a 2.1% contraction.
The UAE's real gross domestic product (GDP) rose 0.4 per cent to Dh961.9 billion in the first half of 2026, according to preliminary estimates from the Federal Competitiveness and Statistics Centre (FCSC). Growth in non-oil sectors helped the economy post a gain even though regional disruptions hurt activity in the second quarter.
Non-Oil Economy Expands 1.8 Per Cent
The FCSC reported 1.8% year-on-year growth in the UAE’s non-oil GDP during the first half of 2026. Non-oil sectors contributed 79.2% of real GDP, compared with 78.1% in the same period of 2025, while oil-related activities accounted for 20.8%.
The centre said this shift shows the country's economic diversification is continuing and supports its long-term goals of competitiveness and resilience.
Second Quarter Sees a 2.1 Per Cent Contraction
The first-half result hides a weaker second quarter. Real GDP in April–June 2026 stood at Dh476.9 billion, a 2.1 per cent fall from the same quarter last year. The period also saw a 1.1% drop in non-oil activity.
Regional developments and travel disruptions were cited as the main reasons. Tourism, transport and trade were among the sectors hit hardest.
Financial and Insurance Services Lead Sector Growth
Among the major sectors, financial and insurance activities recorded the strongest growth in H1 2026, at 14.8 per cent. Other sectors that grew:
Information and communication: 3%
Health and social work: 6%
Construction: 1%
Government activities: 6%
Real estate: 3%
Trade Remains the Biggest Contributor to Non-Oil GDP
By share of non-oil GDP, these were the leading sectors in the first half of the year:
Sector | Share of non-oil GDP |
Trade | 16.2% |
Financial & insurance | 15.2% |
Construction | 13.1% |
Manufacturing | 11.8% |
Real estate | 7.9% |
Figures Are Preliminary
The FCSC stressed that the H1 and Q2 numbers are preliminary and based on current statistical methods. The centre is working with national statistical partners on a full revision of the UAE's GDP data. Updated figures and historical time series are expected after the revised results are approved in the first quarter of 2027.
What This Means
The numbers show a two-sided picture. Diversification is strengthening the non-oil economy, with finance, technology and construction doing well. At the same time, the Q2 decline shows how exposed the UAE economy is to regional instability, especially in tourism, transport and trade. Analysts and investors will be watching the revised GDP data due in 2027.
Source / Reference: Khaleej Times – "UAE economy grows 0.4% to Dh961.9 billion in H1 2026 as non-oil sectors expand", reported by Alyaa Aldhanhani, 9 October 2026. Figures are from the Federal Competitiveness and Statistics Centre (FCSC).
