Newly released figures show the UAE economy posted positive growth in the first half of 2026 despite the impact of regional tensions linked to the conflict involving Iran. Real GDP grew 0.4 per cent year-on-year to around $262 billion over the period, a sharp slowdown from the 6.2 per cent growth recorded for full-year 2025. The second quarter alone saw GDP contract 2.1 per cent annually to about $112.9 billion, a dip officials attribute largely to temporary disruption in tourism, transport and trade during the height of regional tensions.
The Federal Competitiveness and Statistics Centre said the non-oil sector continued to anchor the economy, accounting for 79.2 per cent of total GDP, which it described as evidence of the diversity of the UAE's growth drivers and the resilience of its broader development model. Among non-oil activities, trade contributed the largest share of non-oil GDP at 16.2 per cent, followed by financial and insurance services at 15.2 per cent, construction at 13.1 per cent, manufacturing at 11.8 per cent and real estate at 7.9 per cent.
In terms of growth rates, the financial and insurance sector expanded fastest at 14.8 per cent, ahead of information and communication at 7.3 per cent and health and social work at 6 per cent.
Analysts point to the seasonally adjusted S&P Global UAE Purchasing Managers' Index, which held at 55.3 in September — comfortably above the 50-point threshold that separates growth from contraction — as a sign the non-oil economy has moved past its mid-year slowdown. Taken together, the figures suggest the UAE has largely managed to sustain its growth trajectory despite ongoing geopolitical pressure in the wider region.