The UAE’s real gross domestic product grew by 0.4 per cent to Dh961.9 billion in the first half of 2026, supported by growth in non-oil activities despite regional disruptions that weighed on economic performance during the second quarter.
According to preliminary figures released by the Federal Competitiveness and Statistics Centre , non-oil GDP increased by 1.8 per cent compared with the same period last year.
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The contribution of non-oil activities to the national economy rose to 79.2 per cent, up from 78.1 per cent in the first half of 2025, reflecting the growing role of economic diversification.
UAE GDP contracts 2.1% in second quarter
Despite recording growth in the first six months of the year, the UAE economy contracted during the second quarter of 2026.
Real GDP stood at Dh476.9 billion in the April-to-June period, down 2.1 per cent compared with the corresponding quarter of 2025.
Non-oil activities also declined by 1.1 per cent during the quarter, as regional developments and disruptions to travel affected several sectors, particularly tourism, transport and trade.
The figures highlight the impact of regional challenges on economic activity, even as the broader non-oil economy recorded growth over the first half of the year.
Financial sector leads growth at 14.8 %
Financial and insurance activities recorded the fastest growth among major economic sectors during the first half of 2026, expanding by 14.8 per cent.
Information and communication activities followed with growth of 7.3 per cent, while health and social work activities increased by 6 per cent.
Construction grew by 5.1 per cent, government activities expanded by 3.6 per cent, and real estate activities recorded growth of 2.3 per cent.
The performance reflects the contribution of financial services, technology and infrastructure-related activities to the UAE’s non-oil economy.
Trade accounts for largest share of non-oil GDP
Trade remained the largest contributor to non-oil GDP during the first half of 2026, accounting for 16.2 per cent of total non-oil economic activity.
Financial and insurance activities followed at 15.2 per cent, while construction contributed 13.1 per cent.
Manufacturing accounted for 11.8 per cent, and real estate activities represented 7.9 per cent.
Together, these sectors continued to play a central role in supporting the UAE’s economic diversification.
Non-oil economy accounts for nearly 80% of GDP
According to the FCSC, non-oil activities accounted for 79.2 per cent of the UAE’s real GDP during the first half of 2026, while oil-related activities contributed 20.8 per cent.
The centre said the expanding role of non-oil sectors demonstrates the diversity of the country’s economic growth drivers and supports long-term efforts to strengthen competitiveness and resilience.
GDP figures remain preliminary
The FCSC said the first-half and second-quarter GDP results are preliminary estimates based on existing statistical methodologies and economic data.
The centre is working with partners across the national statistical system on a comprehensive revision of the UAE’s GDP figures.
Updated national GDP data and historical time series are expected to be released following approval of the revised results in the first quarter of 2027.
Source: Khaleej Times