UAE economy grows 0.4% in H1 2026 driven by non-oil sectors

The United Arab Emirates economy grew by 0.4 percent in the first half of 2026, reaching a total of 961.9 billion dirhams ($262 billion). This growth was primarily driven by the expansion of non-oil sectors, which increased by 1.8 percent.

Non-oil activities now account for 79.2 percent of the nation's gross domestic product, up from 78.1 percent during the same period last year. Financial and insurance services were among the strongest performing sectors, recording a 14.8 percent increase. Oil activities contributed the remaining 20.8 percent to the GDP.

Despite the overall growth in the first half, the economy experienced a 2.1 percent year-on-year contraction in real GDP during the second quarter. This decline was attributed to regional uncertainty and disruptions in travel, transport, and trade affecting tourism. The International Monetary Fund noted that while the UAE's policy buffers have helped it withstand regional volatility, overall growth for 2026 may be slightly lower than in 2025.