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THE UAE economy grew 0.4 per cent in the first half of 2026 to 961.9 billion dirhams ($262bn), with non-oil activities expanding 1.8pc and accounting for 79.2pc of gross domestic product, official data showed.
The growth came despite a 2.1pc year-on-year contraction in real GDP in the second quarter, when output reached 476.9bn dirhams.
Non-oil activity also declined 1.1pc in the quarter, as regional developments and travel disruptions affected tourism, transport and trade, according to the Federal Competitiveness and Statistics Centre, the Emirates News Agency, or WAM, reported.
The rising contribution of non-oil sectors highlights the UAE’s economic diversification, with their share of GDP increasing to 79.2pc in the first half from 78.1pc a year earlier. Oil activities accounted for the remaining 20.8pc.
The figures point to continued expansion across several non-oil industries, even as regional uncertainty weighed on overall economic activity during the second quarter.
The International Monetary Fund said in July that the UAE’s strong policy buffers and timely response had helped it withstand regional uncertainty.
However, it expected overall growth in 2026 to be slightly lower than in 2025 as uncertainty weighed on tourism, transport, trade and real estate.
“FCSC data showed that the contribution of non-oil activities to real GDP increased to 79.2pc in the first half of 2026, while oil activities accounted for 20.8pc,” WAM reported.
It added: “These figures reaffirm the importance of advancing economic diversification and expanding the contribution of non-oil sectors to support sustainable growth and strengthen the resilience and competitiveness of the national economy.”
Financial and insurance activities recorded the strongest growth among major economic activities in the first half, rising 14.8pc, followed by information and communication activities at 7.3pc.
Health and social work grew 6pc, followed by construction at 5.1pc, government activities at 3.6pc and real estate activities at 2.3pc, FCSC data showed.
Trade accounted for the largest share of non-oil GDP at 16.2pc, followed by financial and insurance activities at 15.2pc, construction at 13.1pc, manufacturing at 11.8pc and real estate at 7.9pc.
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