The UAE economy grew by 3% in the first quarter of 2026, with non-oil industries making up nearly 80% of the country’s GDP.

DUBAI: The UAE’s economy is still growing, and this time it’s the non-oil sector that’s leading the way.

New figures show the UAE economy expanded by 3% during the first quarter of 2026, reaching AED485 billion at constant prices. Even more impressive, non-oil industries grew by 4.8%, increasing their share of the national economy to 79.4%.

In simple terms, almost four out of every five dirhams generated by the UAE economy now come from sectors outside oil.

Also read: Dubai GDP growth: Economy reaches AED232 billion in first quarter

That’s a big milestone for the country’s long-term plan to build a more diverse economy.

According to the Federal Competitiveness and Statistics Centre, the strong performance came despite regional challenges during the first three months of the year. While some industries felt the impact, overall economic growth stayed on track.

So, which sectors performed the best?

The biggest winner was the financial and insurance sector, which grew by an impressive 17.3% compared with the same period last year.

Construction followed with 8.1% growth, while healthcare and social services rose 7.7%. Information and communication services expanded 5.9%, and professional, scientific and technical activities also recorded healthy growth.

Real estate continued its steady performance with 4.8% growth, while wholesale and retail trade increased 2.6%, showing that consumer spending and business activity remain strong.

Also read: Dubai posts AED355 billion GDP in first nine months of 2025 with 4.7% growth

Officials say the latest figures highlight the success of the UAE’s strategy to reduce its reliance on oil and build new growth engines across finance, technology, trade, tourism and advanced industries.

Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, said the results reflect years of coordinated government policies aimed at strengthening the country’s competitiveness and creating more opportunities for businesses, investors and residents.

Minister of Economy and Tourism Abdulla bin Touq Al Marri added that the continued growth of non-oil industries is helping position the UAE as one of the world’s leading destinations for business and investment.

Trade is also playing a major role.

The government said non-oil exports jumped 23.9% during the first half of 2026, reaching AED452.8 billion, supported by the UAE’s growing network of Comprehensive Economic Partnership Agreements with countries around the world.

Together, these results suggest the country’s economic diversification strategy is continuing to gather momentum as it works towards the goals of the ‘We the UAE 2031’ Vision, which aims to grow the national economy to AED3 trillion by 2031.

Key results of Q1 2026

  • UAE GDP grew 3%, reaching AED485 billion.
  • Non-oil GDP increased 4.8%.
  • The non-oil sector now contributes 79.4% of the UAE economy.
  • Financial and insurance recorded the fastest growth at 17.3%.
  • Construction expanded by 8.1%.
  • Healthcare and social services grew 7.7%.
  • Information and communication rose 5.9%.
  • Real estate increased 4.8%.
  • Wholesale and retail trade grew 2.6%.
  • Non-oil exports surged 23.9% in H1 2026 to AED452.8 billion.
  • Growth was driven by the UAE’s economic diversification strategy and expanding global trade partnerships.