Dubai's economy reached Dh473 billion in the first half of 2026, down 2.3 per cent from a year earlier, as growth in financial services, healthcare and construction helped offset weakness in other sectors.
The emirate's real gross domestic product declined from Dh484 billion in the same period last year, according to figures released on Sunday by the Dubai Data and Statistics Establishment at Digital Dubai.
The slowdown came as the Iran war, which began on February 28, disrupted regional travel and trade, weighing on Dubai's tourism and transport sectors and dampening economic activity during the first half of the year.
GDP at current prices, however, increased by 0.2 per cent to Dh505 billion, reflecting growth across several key sectors.
The figures mark a reversal from the 2.4 per cent annual growth recorded in the first quarter, when Dubai's economy reached Dh232 billion despite regional economic challenges.
Financial and insurance activities were among the strongest performers in the first half, expanding 8.8 per cent in real terms to Dh65.9 billion, compared with Dh60.6 billion a year earlier.
The sector's contribution to GDP increased to 14 per cent from 12.5 per cent, highlighting its growing importance to the emirate's economy.
The expansion comes as the Dubai International Financial Centre continues to attract international financial institutions, with the number of companies operating at the financial hub exceeding 10,000 in the first half of the year.
Healthcare and social work activities recorded the fastest growth, expanding 14.3 per cent, while information and communication activities increased 2.7 per cent.
Construction grew 2.4 per cent in real terms, generating Dh33.2 billion in value added, while government services expanded 2.9 per cent.
However, several major sectors contracted during the period.
Wholesale and retail trade, Dubai's largest economic activity, declined 6 per cent in real terms, although it continued to account for 20.5 per cent of GDP.
Transport and storage fell 7.4 per cent, while real estate activity contracted 2.5 per cent in constant prices, despite growing 5.4 per cent at current prices.
Manufacturing also declined 0.9 per cent in real terms.
The slowdown reflects wider economic challenges across the region, with the UAE's economy expanding just 0.4 per cent in the first half amid disruption caused by the Iran war.
Helal Almarri, director general of the Dubai Department of Economy and Tourism, said the figures demonstrated the emirate's ability to navigate global uncertainty.
"Dubai’s H1 2026 GDP performance reflects the strength and adaptability of an economy built to navigate periods of significant global uncertainty," he said.
Dubai is also moving ahead with Dh2.1 trillion in projects covering housing, aviation and transport, including the expansion of Al Maktoum International Airport, as part of efforts to support long-term economic growth.
Meanwhile, Dubai CommerCity announced a Dh1.8 billion expansion this month to boost its digital commerce sector and attract more technology investment.
He added that continued growth across strategic sectors highlighted the strength of Dubai's economic fundamentals and its focus on long-term development.
Dubai is pressing ahead with its D33 economic agenda, which aims to strengthen its position as a global business and investment centre.
The emirate has also introduced measures to support businesses, including a Dh1.5 billion economic relief package announced in May to help sectors affected by regional uncertainty.
