UAE economy expands 3% in Q1 2026 as non-oil sectors drive growth

Growth was driven by the non-oil sector, which expanded 4.8 percent and increased its share of the economy to 79.4 percent, up from 78 percent a year earlier. Officials said the figures highlight the success of the country's economic diversification strategy despite regional challenges.

The strongest-performing industries included financial and insurance activities (17.3%), construction (8.1%), healthcare (7.7%), and information and communication (5.9%). Real estate also grew by 4.8 percent, while wholesale and retail trade increased by 2.6 percent.

The results reflect the UAE's efforts to strengthen non-oil industries, attract investment, and support long-term sustainable growth under the "We the UAE 2031" vision, which aims to expand the national economy to 3 trillion dirhams by 2031.

The growth was also supported by strong foreign trade. Non-oil exports rose 23.9 percent in the first half of 2026 to 452.8 billion dirhams, boosted by the UAE's Comprehensive Economic Partnership Agreements, which have opened new international markets and strengthened manufacturing, trade, and logistics.

Earlier, it was reported that the UAE topped the Arab region in foreign investments with 48.2 billion US dollars in 2025.