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UAE GDP grew 3% in Q1 2026; non-oil sector expanded 4.8%

The Federal Competitiveness and Statistics Centre reported that the UAE's real GDP grew 3% year-on-year in Q1 2026 to AED 485 billion ($132 billion). The non-oil sector expanded 4.8% and now accounts for 79.4% of the economy. Financials, construction, real estate and ICT led the growth.

AM
Alexander MartsCo-founder, Garant Business Consultancy · UAE economy, visas and investment
5 min read
Federal Competitiveness and Statistics Centre reported UAE Q1 2026 GDP growth of 3% year-on-year to AED 485 billion, with the non-oil sector expanding 4.8%. Illustration: UAE economic outlook.

Common questions on this topic

How much did the UAE economy grow in Q1 2026?

The UAE's real GDP expanded 3.0% year-on-year in the first quarter of 2026 and reached AED 485 billion ($132 billion) at constant prices. The figures were released by the Federal Competitiveness and Statistics Centre — the federal statistics authority of the UAE.

Which sectors drove most of the growth?

The biggest contributors were financial and insurance activities (+17.3% year-on-year, adding 2.44 percentage points to quarterly GDP), construction (+8.1%, contributing 1.04 pp), wholesale and retail trade (+2.6%, 0.42 pp), real estate activities (+4.8%, 0.36 pp) and information and communication (+5.9%). Human health and social work grew 7.7%; professional, scientific and technical activities plus administrative services grew 4.9%; public administration, defence and social security grew 4.5%.

What share of UAE GDP does the non-oil economy now hold?

The non-oil share reached 79.4% in Q1 2026, up from 78.0% in 2025. This reflects the country's deliberate diversification policy under the We the UAE 2031 vision and reduces both budget and macro exposure to oil-price cycles.

Who publishes the UAE's official GDP data?

The primary source is the Federal Competitiveness and Statistics Centre (fcsc.gov.ae). Policy commentary comes from the Ministry of Economy and Tourism (moec.gov.ae). Forecasts and monetary context are provided by the Central Bank of the UAE (centralbank.ae). Data is also distributed by the Emirates News Agency (WAM).

What does this growth mean for businesses and investors?

Three practical takeaways. (1) Diversification has moved from a one-off target to a structural norm: 79.4% non-oil is a stable base for planning. (2) Financial services, construction and real estate are the hottest sectors for new entrants and capital. (3) Macro conditions remain optimal for founders planning company setup and relocation to the UAE in 2026–2027 — strong growth against a benign regulatory backdrop (FATF grey-list exit, PDPL, VARA v2.0).

The UAE's real GDP grew 3.0% year-on-year in Q1 2026 to AED 485 billion ($132 billion) at constant prices. The non-oil sector expanded 4.8% — visibly faster than the headline — and now delivers 79.4% of the entire economy. The data was released by the Federal Competitiveness and Statistics Centre.

This is the first full quarterly print of 2026, and its main message is that non-oil drivers continue to power the UAE economy regardless of oil-cycle swings. The non-oil share climbed to 79.4% from 78.0% in 2025.

Headline figures

  • Real GDP: AED 485 billion ($132 billion) at constant prices.
  • Overall growth: +3.0% year-on-year.
  • Non-oil GDP: +4.8% year-on-year.
  • Non-oil share of the economy: 79.4% (up from 78.0% in 2025).

Sector leaders

The single biggest contribution came from financial and insurance activities — +17.3% year-on-year, adding 2.44 percentage points to quarterly GDP. Next came construction (+8.1%, 1.04 pp), wholesale and retail trade (+2.6%, 0.42 pp), real estate (+4.8%, 0.36 pp) and information and communication (+5.9%). Human health and social work advanced 7.7%; professional, scientific and technical activities plus administrative services 4.9%; public administration, defence and social security 4.5%.

Government view

Minister of Cabinet Affairs Mohammad bin Abdullah Al Gergawi noted that «the growth led by the non-oil economy is not an isolated figure, but the outcome of integrated government policies.» Minister of Economy and Tourism Abdulla bin Touq Al Marri added: «Non-oil sectors continue to lead growth, raising their contribution to 79.4% of GDP.» Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi linked the result to the country's active trade agenda — the CEPA network and expanding market access for UAE exporters.

What it means for business

For investors and founders, the quarter carries three signals:

  1. Structural diversification. A 79.4% non-oil share is a durable norm, not a one-off. The UAE is methodically progressing toward the We the UAE 2031 targets, which envisage a further rise in the non-oil share.
  2. Financials and construction are the hot sectors. The 17.3% jump in financial services reflects both foreign-capital inflows and the activity of banks and fintech. Construction at +8.1% is driving demand for residential and commercial projects. Real estate (+4.8%) and ICT (+5.9%) provide a steady baseline.
  3. The regulatory backdrop remains favourable. The renewed business regulation landscape in the UAE 2026 (FATF grey-list exit, VARA v2.0, PDPL) removes entry barriers. For those planning to set up a company in the UAE in 2026, macro conditions remain optimal.

Context: how it fits the broader trend

The Q1 2026 print extends a run of positive non-oil signals. In H1 2026, UAE non-oil foreign trade reached AED 1.937 trillion (+13.1% year-on-year) and non-oil exports set a record at AED 452.8 billion. The Central Bank of the UAE, in its June quarterly report, flagged the risk of a headline slowdown to 1.7% in 2026 on regional factors, with a rebound to 9.8% in 2027. The Q1 2026 outcome (+3.0% headline, +4.8% non-oil) tracks the upper end of that forecast and confirms the underlying momentum of the economy.

This material is informational and not investment advice. Primary data — Federal Competitiveness and Statistics Centre (fcsc.gov.ae) and Ministry of Economy and Tourism (moec.gov.ae). Forecasts by the Central Bank of the UAE — centralbank.ae. Verify sector-level figures against fcsc.gov.ae.

Topics:UAEEconomyGDPNon-oilQ1 2026Federal Competitiveness and Statistics Centre

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