The UAE's economy grew 3 per cent on an annual basis in the first three months of 2026 to reach Dh485 billion as the country's non-oil sector expanded.
The Emirates' non-oil gross domestic product grew by 4.8 per cent, raising its contribution to 79.4 per cent of the national economy, reflecting the continued strength of non-oil economic activities, the UAE Government Media Office said on Tuesday, citing data from the Federal Competitiveness and Statistics Centre.
The quarter included one month of the Iranian war, at a time when the UAE was being targeted daily by Iranian missiles and drones, sparking disruption to the local economy.
"The growth led by the non-oil economy ... is not an isolated figure, but the outcome of integrated government policies and initiatives working as one system towards one goal: consolidating the UAE's standing as a global leader in competitiveness, excellence and future readiness," said Mohammad Al Gergawi, Minister of Cabinet Affairs.
The results also demonstrate the resilience of the national economy, as this growth was achieved despite the regional challenges witnessed during the first quarter of the year, the media office said. It added that the impact of the regional events was confined to a limited number of activities and did not affect the overall trajectory of economic growth.
Key growth sectors
Financial and insurance activities led the growth in the first quarter at 17.3 per cent, followed by construction at 8.1 per cent and human health and social work activities at 7.7 per cent, according to the government data.
Information and communication activities grew by 5.9 per cent and professional, scientific and technical activities together with administrative and support service activities grew by 4.9 per cent, "reflecting continued momentum across vital, high-value-added economic activities".
The Arab world's second-largest economy continues to grow despite the Iran conflict and amid a push towards diversification as well as the signing of new Comprehensive Economic Partnership Agreements (Cepa).
Strong performance of the country's foreign trade, backed by Cepa deals, has opened new markets for national non-oil exports, the media office said, adding that it has strengthened the performance of manufacturing, trade and logistics activities.
Key statistics
- GDP reached Dh485 billion, growing 3 per cent compared with Q1 2025.
- Non-oil GDP grew by 4.8 per cent, raising its contribution to 79.4 per cent of the national economy.
- Financial and insurance activities were the fastest growing at 17.3 per cent, followed by construction at 8.1 per cent.
- The financial sector alone contributed 2.44 percentage points of total non-oil growth.
- Non-oil exports recorded Dh452.8 billion, growing 23.9 per cent during the first half of 2026.
