UAE Economy Hits AED 961.9 Billion in H1 2026, Non-Oil Sector Dominates at 79.2%
The UAE's real GDP reached AED 961.9 billion in the first half of 2026, marking a 0.4% growth year-on-year, with non-oil activities contributing 79.2% to the national economy.
The UAE economy demonstrated continued growth and diversification in the first half of 2026, with its real Gross Domestic Product (GDP) reaching AED 961.9 billion at constant prices. This represents a 0.4% increase compared to the same period in 2025, according to data released by the Federal Competitiveness and Statistics Centre (FCSC).
Non-Oil Sector Drives Growth
Non-oil GDP expanded by 1.8%, significantly boosting its contribution to the national economy to 79.2%, up from 78.1% in the first half of the previous year. This highlights the UAE's ongoing success in diversifying its economic base away from oil. Key sectors driving this non-oil growth include trade, financial and insurance activities, construction, manufacturing, and real estate.
Sectoral Performance
Financial and insurance activities led growth among major economic sectors, recording an impressive 14.8% increase in H1 2026. This was followed by:
- Information and communication activities: 7.3% growth
- Health and social work activities: 6% growth
- Construction: 5.1% growth
- Government activities: 3.6% growth
- Real estate activities: 2.3% growth
In terms of contribution to non-oil GDP, trade activities ranked highest at 16.2%, followed by financial and insurance activities at 15.2%, construction at 13.1%, manufacturing at 11.8%, and real estate activities contributing 7.9%.
Q2 2026 Performance
While the first half showed overall growth, the second quarter of 2026 saw a contraction, with real GDP reaching AED 476.9 billion, a 2.1% decline compared to Q2 2025. Non-oil activities also experienced a 1.1% contraction during this quarter, primarily due to regional developments and travel disruptions impacting sectors like tourism, transport, and trade. Despite this, the non-oil sector's overall contribution to real GDP for H1 2026 remained strong at 79.2%, with oil activities accounting for 20.8%.
The FCSC is currently implementing the UAE Comprehensive GDP Revision Programme, with updated national GDP time series expected to be released in the first quarter of 2027.
Questions, answered
- What was the total real GDP of the UAE in the first half of 2026?
- The UAE's real Gross Domestic Product (GDP) reached AED 961.9 billion at constant prices during the first half of 2026.
- How much did the non-oil sector contribute to the UAE's economy in H1 2026?
- Non-oil activities contributed 79.2% to the national economy in the first half of 2026, marking an increase from 78.1% in the same period of the previous year.
- Which economic sectors showed the highest growth in H1 2026?
- Financial and insurance activities recorded the highest growth rate at 14.8% in the first half of 2026, followed by information and communication activities at 7.3%.
- What was the growth rate for real estate activities in H1 2026?
- Real estate activities in the UAE grew by 2.3% in the first half of 2026, contributing 7.9% to the non-oil GDP.
- Why did the UAE's GDP decline in Q2 2026?
- The UAE's real GDP declined by 2.1% in Q2 2026, with non-oil activities contracting by 1.1%, primarily due to regional developments and travel disruptions affecting sectors like tourism, transport, and trade.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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