Dubai’s economy contracted 2.3% to Dh473 billion in H1 2026 as regional tensions affected trade and transport, while healthcare and finance recorded strong growth
DUBAI: Dubai’s economy contracted by 2.3 per cent during the first half of 2026, with real gross domestic product (GDP) reaching Dh473 billion. Regional conflict disrupted trade, travel and transport, weighing on several major economic sectors.
Figures released by the Dubai Data and Statistics Establishment at Digital Dubai showed that GDP declined from Dh484 billion during the corresponding period in 2025.
However, GDP at current prices increased by 0.2 per cent to approximately Dh505 billion, highlighting differences between real and nominal economic performance.
Healthcare and finance drive growth
Despite the overall contraction, several sectors demonstrated resilience.
Healthcare and social work activities recorded the strongest growth, expanding 14.3 per cent. Their economic contribution reached Dh6.2 billion.
Financial and insurance activities grew 8.8 per cent to Dh65.9 billion. The sector’s contribution to Dubai’s real GDP increased from 12.5 per cent to 14 per cent.
Construction expanded 2.4 per cent, generating Dh33.2 billion, while information and communication activities grew 2.7 per cent.
Regional conflict affects key sectors
The regional war, which began in February, disrupted travel and commercial activity across the Middle East.
Transport and storage activities declined 7.4 per cent, while wholesale and retail trade contracted 6 per cent.
Real estate activity fell 2.5 per cent in real terms, while manufacturing declined 0.9 per cent.
Nevertheless, wholesale and retail trade remained Dubai’s largest economic sector, accounting for 20.5 per cent of GDP.
Dubai maintains long-term growth plans
Dubai continues to pursue its D33 economic agenda, which aims to strengthen its position as a global investment and business destination.
The emirate is advancing major infrastructure projects covering aviation, housing and transport.
Officials highlighted economic diversification, innovation and investment as important drivers of future growth.
Although regional instability affected first-half performance, expansion in healthcare, finance and technology demonstrated Dubai’s ability to withstand external economic pressures.
Impact to Expect
Dubai’s economic slowdown could put pressure on tourism, retail and transport in the coming months. However, strong growth in healthcare, finance and technology may support recovery. Continued infrastructure investment and economic diversification could help Dubai regain momentum as regional tensions ease.
