The role of the UAE's non-oil sector 'supports sustainable and balanced growth across a broad range of economic sectors'. Chris Whiteoak / The National
The role of the UAE's non-oil sector 'supports sustainable and balanced growth across a broad range of economic sectors'. Chris Whiteoak / The National

UAE economy grew in first half of 2026 despite impact of Iran war


The UAE's real gross domestic product grew 0.4 per cent annually to Dh961.9 billion ($262 billion) in the first half of 2026, driven by non-oil business activity, despite the impact of the Iran war.

The non-oil sector's contribution to the GDP during the six-month period increased by 1.8 per cent to 79.2 per cent, the Federal Competitiveness and Statistics Centre said in a statement on Friday.

The results "reflect the continued diversification of the UAE's economic base and the growing role of non-oil activities", the FCSC said.

"Their expanding contribution to economic activity demonstrates the diversity of growth drivers and supports sustainable and balanced growth across a broad range of economic sectors."

In the second quarter of the year, the UAE's real GDP reached Dh476.9 billion, a decline of 2.1 per cent annually. Non-oil activities also contracted by 1.1 per cent, as several economic sectors, particularly tourism, transport, and trade, were affected by regional developments and disruptions to travel.

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Updated: October 09, 2026, 10:39 AM