Business · Economy · 10 hrs ago
UAE economy grows 0.4% in first half of 2026 as non-oil sectors expand
The UAE economy grew 0.4% in the first half of 2026, reaching 961.9 billion dirhams.
Non-oil activities expanded 1.8% and accounted for 79.2% of GDP, up from 78.1% a year earlier.
Oil activities made up the remaining 20.8%.
But the economy contracted 2.1% year on year in the second quarter, as regional developments and travel disruptions affected tourism, transport and trade.
Financial and insurance activities grew fastest among major sectors, rising 14.8% in the first half.
The figures show that non-oil industries are taking a larger role in the UAE economy, even as regional uncertainty weighs on activity.
The International Monetary Fund expects the UAE’s overall growth in 2026 to be slightly lower than in 2025, partly because of uncertainty affecting tourism, transport, trade and real estate.
The UAE economy grew 0.4 percent in the first half of 2026 to 961.9 billion dirhams ($262 billion).
Non-oil activities expanded 1.8 percent and made up 79.2 percent of gross domestic product.
Real GDP contracted 2.1 percent year on year in the second quarter, reaching 476.9 billion dirhams.
Regional developments and travel disruptions affected tourism, transport and trade during the quarter.
Financial and insurance activities led major sectors, growing 14.8 percent in the first half.
- Who
- The UAE economy.
- What
- It grew 0.4 percent in the first half of 2026, while real GDP contracted in the second quarter.
- When
- The first half of 2026.
- Where
- The United Arab Emirates.
- Why
- Non-oil activities expanded, while regional developments and travel disruptions weighed on activity in the second quarter.
This story does not have two clearly opposing sides.
These figures reaffirm the importance of advancing economic diversification and expanding the contribution of non-oil sectors to support sustainable growth and strengthen the resilience and competitiveness of the national economy.
The UAE economy grew 0.4 percent, while non-oil activities expanded 1.8 percent.
Real GDP contracted 2.1 percent year on year to 476.9 billion dirhams.
The International Monetary Fund said strong policy buffers and a timely response had helped the UAE withstand regional uncertainty.
- First-half GDP
- 961.9 billion dirhams ($262 billion)
- First-half GDP growth
- 0.4 percent
- Non-oil share of GDP
- 79.2 percent
- Second-quarter GDP contraction
- 2.1 percent year on year
- Fastest-growing major activity
- Financial and insurance activities: 14.8 percent
Sources
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