Dubai's economy reaches Dh473bn in first half of 2026 as key sectors expand

Dubai's economy reached Dh473 billion in the first half of 2026, marking a 2.3% decline from the previous year, according to figures from the Dubai Data and Statistics Establishment. The slowdown was primarily due to the ongoing Iran war, which disrupted tourism, transport, and regional trade. Despite the overall contraction, key sectors such as financial services, healthcare, and construction helped offset the weaker performance in other areas.

Financial and insurance activities experienced the most significant expansion, growing by 8.8% in real terms to Dh65.9 billion, representing 14% of the GDP. Healthcare and social work activities saw the fastest growth at 14.3%, while information and communication activities increased by 2.7%. Construction activity also expanded by 2.4%, generating Dh33.2 billion in value added, while government services grew by 2.9%.

However, several major sectors contracted during the period. Wholesale and retail trade, Dubai's largest economic activity, declined by 6% in real terms, though it still accounted for 20.5% of GDP. Transport and storage fell by 7.4%, and real estate activity contracted by 2.5% in constant prices, despite growing by 5.4% at current prices. Manufacturing also declined by 0.9% in real terms.

The overall GDP at current prices increased by 0.2% to Dh505 billion, reflecting growth across several key sectors. This marks a reversal from the 2.4% annual growth recorded in the first quarter when Dubai's economy reached Dh232 billion. The Dubai International Financial Centre continues to attract international financial institutions, with over 10,000 companies operating at the financial hub in the first half of the year.

Despite the challenges posed by the Iran war, Dubai's economy has shown resilience and adaptability. Helal Almarri, director general of the Dubai Department of Economy and Tourism, stated that the figures demonstrate the emirate's ability to navigate global uncertainty. Dubai is currently investing Dh2.1 trillion in projects covering housing, aviation, and transport, with the expansion of Al Maktoum International Airport being a key initiative to support long-term economic growth.

Additionally, Dubai CommerCity announced a Dh1.8 billion expansion to boost its digital commerce sector and attract more technology investment, further strengthening Dubai's position as a global business and investment center.