# UAE economic diversification and cybersecurity expansion

> Live situation record from CLSTR: https://clstr.news/situations/uae-economic-diversification-and-fdi-growth
> Updated: 2026-10-09T09:17:22.000Z. Sources: 7. Developments: 2.

The United Arab Emirates has seen significant growth in its outward foreign direct investment (FDI) and economic diversification. By 2025, the country’s total outward FDI stock reached approximately $402.7 billion, with the emirate of Sharjah specifically reporting a 45 percent surge in FDI projects.

In the first half of 2026, the UAE economy reached approximately $261.92 billion, reflecting a 0.4 percent growth compared to the same period in 2025. Non-oil activities have become a primary driver of the economy, contributing 79.2 percent of the national GDP, an increase from 78.1 percent the previous year. Financial and insurance services were among the strongest performing sectors, recording a 14.8 percent increase. While sectors such as trade, manufacturing, and real estate have supported this diversification, the second quarter of 2026 experienced a 2.1 percent decrease in real GDP, with non-oil activities contracting by 1.1 percent due to regional developments and travel disruptions. The International Monetary Fund noted that while policy buffers have helped the UAE withstand regional volatility, overall growth for 2026 may be slightly lower than in 2025.

Alongside these economic shifts, the UAE has intensified cybersecurity efforts to protect digital infrastructure. Following reports that the country has faced “more than 800,000 cyberattacks per day in recent months,” the UAE Cyber Security Council and CPX Holding established the UAE Cyber Factory. This initiative aims to develop AI-powered capabilities for detecting and responding to cyberattacks.

## Timeline

### 2026-10-09: UAE economy grows 0.4% in H1 2026 driven by non-oil sectors

The UAE economy grew 0.4% in H1 2026 to $262 billion, driven by a 1.8% expansion in non-oil sectors which now comprise 79.2% of the country's GDP.

4 sources. https://clstr.news/cluster/uae-economy-reaches-262-billion-in-h1-2026-driven-by-non-oil-growth

### 2026-10-05: UAE outward FDI stock reaches $402 billion as Sharjah projects surge

The UAE's outward FDI stock reached $402.7 billion by the end of 2025, while Sharjah saw a 45% surge in FDI projects driven by economic diversification and regulatory stability.

5 sources. https://clstr.news/cluster/sharjah-fdi-projects-grow-45-percent-in-2025

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Cite as: UAE economic diversification and cybersecurity expansion. CLSTR, https://clstr.news/situations/uae-economic-diversification-and-fdi-growth