UAE GDP advances 0.4% despite second-quarter contraction

The UAE economy grew by 0.4% in the first half of 2026, reaching a real gross domestic product of Dh961.9 billion, according to figures released by the Federal Competitiveness and Statistics Centre. Despite a contraction in the second quarter, non-oil activities sustained growth, contributing 79.2% to the national economy compared to 78.1% a year earlier.

Non-oil GDP increased by 1.8% year on year, lifting its contribution to 79.2% from 78.1% the previous year. However, the second quarter saw real GDP decline by 2.1% to Dh476.9 billion, with non-oil activities contracting by 1.1%. This contraction was attributed to regional developments and travel disruptions affecting sectors reliant on cross-border movement and commercial activity.

Financial and insurance activities recorded the strongest growth during the first half, expanding by 14.8%, followed by information and communication activities with a 7.3% increase. Construction saw a 5.1% rise, while government activities grew by 3.6%. Trade accounted for the largest share of non-oil GDP at 16.2%, followed by financial and insurance activities at 15.2%.

The sectoral figures revealed varying rates of growth within an economy facing weaker conditions during the second quarter. The FCSC emphasized that the expansion of non-oil industries highlighted the UAE's diverse economic growth drivers, with government institutions now having a more differentiated picture of economic performance than a mere overall growth rate would suggest.