The United Arab Emirates reported strong economic momentum in the first quarter of 2026, with real gross domestic product growing 3 percent year on year to reach AED 485 billion ($132.1 billion) at constant prices, according to data released by the UAE Media Office on August 4, 2026.
The non-oil sector was the primary driver of growth, expanding 4.8 percent and generating 79.4 percent of national output. This marks a continuation of the UAE’s sustained diversification strategy, which has steadily reduced the economy’s dependence on hydrocarbon revenues over the past decade.
The Human Health and Social Work Activities sector recorded the highest growth rate at 17.5 percent, contributing 1.5 percentage points to overall GDP growth. Other key sectors including financial services, tourism, and logistics also posted gains, underscoring the broad-based nature of the expansion.
UAE Minister of State Saeed Al Hajeri said the economy remains resilient despite global and regional uncertainty, highlighting that non-oil GDP now accounts for nearly four-fifths of total economic output. The figures align with the UAE government’s long-term vision of building a knowledge-based, diversified economy less vulnerable to oil price fluctuations.
The data also showed that the UAE’s overall economy expanded by 6.2 percent in 2025, with GDP rising to AED 1.9 trillion, while non-oil GDP grew 6.8 percent to reach AED 1.5 trillion. The International Monetary Fund has projected that the UAE economy will rebound further during the second half of 2026 as exports recover and hydrocarbon production accelerates.
Separately, the UAE’s non-oil private sector grew at its fastest pace in four months in July 2026, as new orders climbed to a five-month high and export business rose, according to a business survey reported by Reuters. The purchasing managers’ index readings suggest that the momentum from the first quarter has carried into the summer months.
The strong non-oil performance comes amid the UAE’s aggressive pursuit of Comprehensive Economic Partnership Agreements (CEPAs) with trading partners, which has expanded the country’s trade network to 38 agreements across major global markets. These bilateral trade deals have lowered tariffs and opened market access for UAE-based businesses, contributing to the sustained non-oil growth trajectory.
Economists note that while global headwinds including trade tensions and regional geopolitical risks persist, the UAE’s diversified economic structure and proactive trade policy have positioned it among the fastest-growing economies in the Middle East and North Africa region.
