UAE non-oil sectors drive 3% GDP growth to AED485 billion in Q1 2026
Non-oil sectors expand 4.8% as finance and construction lead diversified growth
The UAE’s non-oil economy delivered AED485 billion in real GDP during the first quarter of 2026, growing 3 per cent year-on-year as diversified sectors carried the bulk of national output.
Non-oil economic activities expanded 4.8 per cent and now account for 79.4 per cent of total national output, according to data released by the Federal Competitiveness and Statistics Centre. Finance, trade, information technology and communications all contributed meaningfully to that result.
Additional reference context is available at https://www.arnnewscentre.ae/en/news/business/uaes-gdp-grows-by-3-to-aed485-billion-in-first-quarter-of-2026/.
Financial and insurance activities led the way. They expanded 17.3 per cent year-on-year and alone accounted for 2.44 percentage points of total growth, making them the single largest driver of the quarter’s performance. Construction followed with an 8.1 per cent expansion, contributing 1.04 percentage points to the overall figure. Human health and social work activities grew 7.7 per cent, information and communication sectors expanded 5.9 per cent, and professional, scientific and technical activities combined with administrative and support services grew 4.9 per cent during the period.
Secondary sectors held their ground. Real estate activities expanded 4.8 per cent and contributed 0.36 percentage points to growth, while public administration, defence and compulsory social security rose 4.5 per cent. Wholesale and retail trade, at a more modest 2.6 per cent expansion, still added 0.42 percentage points to the overall figure, reflecting how broadly economic activity is distributed across the economy.
Meanwhile, government officials framed the results as confirmation that targeted development policies are working. Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, characterized the performance as validation of the strategic approach to economic diversification. Abdulla bin Touq Al Marri, Minister of Economy and Tourism, emphasized the robustness of national economic performance and its capacity to sustain expansion despite external pressures.
The data points to a growth pattern that is not dependent on any single sector. Contributions spread across finance, construction, healthcare, technology and real estate suggest a structural resilience that has grown more consequential as the UAE manages regional challenges while sustaining its position as a regional economic hub.
Whether that spread of contributions can deepen further, or whether financial services will continue to carry a disproportionate share of the load, is the question the next quarter’s figures will begin to answer.
Q&A
What was the UAE non-oil GDP in Q1 2026 and what was the year-on-year growth rate?
The UAE non-oil economy delivered AED485 billion in real GDP during the first quarter of 2026, growing 3 per cent year-on-year.
Which sector contributed the most to Q1 2026 growth and by how much?
Financial and insurance activities led the way, expanding 17.3 per cent year-on-year and accounting for 2.44 percentage points of total growth, making them the single largest driver of the quarter's performance.
What percentage of total national output do non-oil sectors now represent?
Non-oil economic activities now account for 79.4 per cent of total national output.
Which government officials commented on the Q1 2026 economic results and what was their characterization?
Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, characterized the performance as validation of the strategic approach to economic diversification. Abdulla bin Touq Al Marri, Minister of Economy and Tourism, emphasized the robustness of national economic performance and its capacity to sustain expansion despite external pressures.