DUBAI: The UAE’s non-oil economy continued to outpace overall growth in the first quarter of 2026, expanding 4.8% year on year and raising its contribution to national GDP to 79.4%, according to government data.
Real GDP grew 3% during the January-March period to AED 485 billion at constant prices. The non-oil share increased from 78% in the same period of 2025, highlighting the growing weight of sectors outside hydrocarbons.
The latest figures from the Federal Competitiveness and Statistics Centre point to continued progress in the UAE’s economic diversification strategy. The expansion also came during a quarter marked by regional challenges, although their impact was described as limited to a number of activities rather than affecting the broader growth trajectory.
Finance and construction lead non-oil growth
Financial and insurance activities recorded the strongest expansion among the major sectors, growing 17.3% year on year in the first quarter.
Construction followed with growth of 8.1%, while human health and social work activities expanded 7.7%. Information and communication grew 5.9%, and professional, scientific and technical activities, together with administrative and support services, rose 4.9%.
Financial and insurance activities also made the largest contribution to non-oil growth, accounting for 2.44 percentage points. Construction contributed 1.04 percentage points, followed by wholesale and retail trade at 0.42 percentage points and real estate at 0.36 percentage points.
Real estate activity increased 4.8%, while public administration, defence and compulsory social security grew 4.5%. Wholesale and retail trade recorded 2.6% growth.
Diversification remains a central economic priority
The increase in the non-oil contribution from 78% to 79.4% in a year reflects the UAE’s continuing effort to broaden its economic base.
The government has linked this strategy to the We the UAE 2031 vision, which aims to increase the size and competitiveness of the national economy while supporting investment, innovation and new economic activities. The long-term target is to take the national economy to AED 3 trillion by 2031.
The performance also follows a broader trend of strong non-hydrocarbon activity. The Central Bank of the UAE reported that non-hydrocarbon GDP averaged 6.1% year-on-year growth during the first nine months of 2025, with financial services, construction, manufacturing, real estate and wholesale and retail among the leading contributors.
Trade adds another growth channel
The UAE’s diversification drive is also being supported by international trade.
Government data cited in August showed non-oil exports reached AED 452.8 billion during the first half of 2026, with the country’s network of Comprehensive Economic Partnership Agreements helping open additional markets for UAE products and supporting manufacturing, trade and logistics activity.
For businesses operating in the UAE, the changing composition of GDP means that financial services, construction, technology, real estate, healthcare, professional services and trade are playing an increasingly important role in overall economic activity.
The first-quarter figures therefore offer a snapshot not only of headline GDP growth but also of the changing structure of the UAE economy, with non-oil activities now accounting for almost four-fifths of national output.
What was the UAE’s GDP growth in Q1 2026?
The UAE’s real GDP grew 3% year on year in Q1 2026, reaching AED 485 billion at constant prices.
How fast did the UAE non-oil economy grow?
Non-oil GDP expanded 4.8% year on year in the first quarter of 2026.
What share of UAE GDP came from non-oil activities?
Non-oil activities accounted for 79.4% of the national economy in Q1 2026, compared with 78% a year earlier.
Which UAE sector grew fastest in Q1 2026?
Financial and insurance activities recorded the fastest growth among the listed major sectors, expanding 17.3%.
How fast did UAE construction activity grow?
Construction grew 8.1% year on year in Q1 2026.
What is the UAE’s long-term economic target?
The We the UAE 2031 vision aims to increase the size of the national economy to AED 3 trillion by 2031.
