UAE economy grows 3% in Q1 2026 as non-oil sector contribution rises to 79.4%

Abu Dhabi: The UAE's real gross domestic product (GDP) grew by 3% year-on-year in the first quarter of 2026, reaching AED485 billion at constant prices, while non-oil GDP expanded by 4.8%, increasing its contribution to 79.4% of the national economy. According to data released by the Federal Competitiveness and Statistics Centre, the results underscore the resilience of the UAE economy and the continued strength of non-oil sectors despite regional challenges during the first quarter, whose effects were limited and did not alter the overall growth trajectory. The contribution of non-oil activities increased from 78.0% in 2025 to 79.4% in Q1 2026, highlighting the success of the UAE's economic diversification strategy and progress towards the goals of the 'We the UAE 2031' Vision. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, said the results reflect the effectiveness of national development policies aimed at strengthening non-oil sectors. "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," he said. "The growth led by the non-oil economy, through sectors such as finance, trade, and information, technology and communications, is the outcome of integrated government policies and initiatives working as one system towards one goal: consolidating the UAE's standing as a global leader in competitiveness, excellence and future readiness." Financial sector leads growth Among key sectors, financial and insurance activities recorded the strongest growth, expanding 17.3% year-on-year, followed by: Construction: 8.1% Human health and social work activities: 7.7% Information and communication: 5.9% Professional, scientific and technical activities, together with administrative and support services: 4.9% Real estate activities: 4.8% Public administration, defence and compulsory social security: 4.5% Wholesale and retail trade: 2.6% Financial and insurance activities also made the largest contribution to overall economic growth, accounting for 2.44 percentage points, followed by construction (1.04 percentage points), wholesale and retail trade (0.42 percentage points), real estate (0.36 percentage points) and professional and technical services (0.29 percentage points). Diversification strategy delivering results Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the latest figures demonstrate the strength and competitiveness of the national economy. "The results of the first quarter of 2026 reflect the robustness of the national economy's performance and its ability to sustain growth and enhance its competitiveness at both the regional and global levels," he said. "Non-oil sectors continue to lead growth, raising their contribution to 79.4% of GDP, supporting the UAE's sustainable economic growth and reinforcing its position as a global hub for business and investment." Al Marri added that the performance reflects the UAE's transition towards a more diversified and sustainable economic model capable of adapting to global developments while supporting the target of expanding the national economy to AED3 trillion by 2031. Trade expansion supports growth The strong performance of non-oil sectors coincides with continued expansion in the UAE's foreign trade, supported by the country's network of Comprehensive Economic Partnership Agreements (CEPAs). Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, said the GDP results confirm the success of the UAE's strategy of expanding global trade and investment partnerships. "The UAE's GDP growth results for the first quarter of 2026 reflect the success of the wise leadership's vision in continuing to build a more open and globally competitive economy," he said. He noted that CEPAs continue to open new markets for UAE exports while strengthening manufacturing, trade and logistics sectors. According to Al Zeyoudi, non-oil exports surged 23.9% during the first half of 2026 to AED452.8 billion, representing the fastest growth among the components of the UAE's foreign trade. The increase highlights the growing role of trade openness in stimulating domestic production and enhancing the competitiveness of industrial and service sectors, key pillars of the country's diversification agenda. Statistical system upgrade underway The UAE is also undertaking a comprehensive review of its GDP accounts as part of a broader transformation of the national statistical system. The programme includes the integration of new data sources, the inclusion of free zones within statistical coverage and the alignment of methodologies with international standards and best practices. Officials said current GDP figures are based on the existing statistical methodology and that historical data series will be updated after the completion of the Comprehensive GDP Revision Programme. The initiative is being implemented in partnership with sp