The UAE economy grew by 0.4 per cent in the first half of 2026, with real gross domestic product reaching Dh961.9 billion at constant prices, according to preliminary estimates from the Federal Competitiveness and Statistics Centre, the federal body responsible for national statistics. Non-oil activity grew faster than the economy as a whole, rising 1.8 per cent.
That growth lifted the share of non-oil activities to 79.2 per cent of the national economy, up from 78.1 per cent a year earlier. Oil activities accounted for the remaining 20.8 per cent. The half-year total is equal to about $262 billion at the dirham’s fixed exchange rate to the US dollar.
The headline figure hides a weaker second quarter. Real GDP for April to June came to Dh476.9 billion, a fall of 2.1 per cent from the same period of 2025, and non-oil activity dropped 1.1 per cent in the quarter. The statistics centre linked the decline to regional developments and travel disruption, which hit tourism, transport and trade hardest. A stronger first quarter is what kept the six-month result in positive territory. In other words, the economy shrank in the most recent quarter even though the half-year figure shows growth.
Several sectors still expanded strongly over the half. Financial and insurance services led with growth of 14.8 per cent, followed by information and communication at 7.3 per cent, health and social work at 6 per cent and construction at 5.1 per cent. Government activities rose 3.6 per cent and real estate 2.3 per cent. Trade remained the largest contributor to non-oil GDP at 16.2 per cent, ahead of financial and insurance services at 15.2 per cent, construction at 13.1 per cent, manufacturing at 11.8 per cent and real estate at 7.9 per cent. Financial and insurance services were therefore both the fastest-growing major sector and the second-largest contributor to non-oil output.
The centre described the figures as preliminary. It is carrying out the UAE Comprehensive GDP Revision Programme, and a revised national GDP series will be released once the results are approved in the first quarter of 2027, so the numbers could change. The third-quarter reading will be watched closely to see whether the second-quarter contraction in travel-dependent sectors continues, or whether finance, technology and construction can keep the non-oil economy growing while disruption across the region persists.
