UAE Economy Grows 3% in Q1 2026 to Dh485 Billion, Non-Oil Sector Expands 4.8% and Contributes 79.4% of GDP

The UAE economy recorded 3 percent growth in the first quarter of 2026, with real gross domestic product reaching Dh485 billion ($132 billion) at constant prices, announced on August 4, according to Ministry of Economy and Tourism figures released today. The non-oil economy expanded by 4.8 percent during the period and contributed 79.4 percent of the national economy, with financial and insurance activities leading growth at 17.3 percent. The first-quarter result reflects the country's vision of transitioning towards a more diversified and sustainable economic model, said Abdulla bin Touq, Minister of Economy and Tourism. Despite Iranian missile and drone attacks during the quarter, economic disruption remained limited, with Gulf economies maintaining growth momentum. Non-oil exports surged 23.9 percent in the first half of 2026 to Dh452.8 billion, supported by Comprehensive Economic Partnership Agreements opening new markets. This carries implications for the broader Markets & Capital picture, with the resilient non-oil expansion signaling that the UAE's diversification strategy is absorbing regional volatility. The result also reinforces the UAE's position as a regional outlier, achieving sustained non-oil growth while neighboring energy exporters face sharper hydrocarbon-revenue headwinds. For UAE Desk coverage, the 3 percent headline figure — while modest by recent standards — reflects discipline in fiscal policy and structural reform continuing through a period of acute geopolitical stress.