The United Arab Emirates (UAE) economy expanded by 3 percent in the first quarter of 2026, with real gross domestic product (GDP) increasing to Dh485 billion from Dh470.9 billion a year earlier. Notably, non-oil sectors continued to drive growth, with non-hydrocarbon activity rising by 4.8 percent and accounting for nearly 79.4 percent of the nation’s GDP—up from 78 percent the previous year.

This shift reflects the UAE’s ongoing efforts to diversify its economy beyond oil, underpinned by comprehensive government policies focused on investment, trade, infrastructure, technology, and business development. The diversification effort aims to broaden the country’s economic foundations, creating expanded opportunities for investment, trade, employment, and sustained long-term growth.

Key contributors to non-oil growth in the first quarter included financial and insurance services, construction, healthcare, communications, professional services, real estate, and trade. These sectors collectively reduced the relative economic dependence on hydrocarbons. Mohammad Bin Abdullah Al Geragwi, Minister of Cabinet Affairs, attributed the growing non-oil share to integrated government strategies aligned toward common development goals.

These developments mark progress toward the UAE’s “We the UAE 2031” vision, which targets doubling the national economy to Dh3 trillion by 2031. Achieving this ambition will require continuous growth, investment, and productivity improvements, with the expanding non-oil sector playing a key role in broadening the sources of national output.

Trade figures for the first half of 2026 further reinforce the diversification trend. Non-oil foreign trade reached Dh1.937 trillion, a 13.1 percent increase from the same period in 2025, approaching the Dh2 trillion mark for a six-month span. Non-oil exports showed particularly strong growth, rising 23.9 percent to Dh452.8 billion and increasing their share of total foreign trade from 21.3 percent to 23.4 percent.

Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and ruler of Dubai, emphasized that these trade figures reflect the strength and global confidence in the UAE economy, as well as the success of its development strategy.

Supporting this growth is the Comprehensive Economic Partnership Agreements (CEPA) programme, launched in September 2021. By July 2026, the UAE had signed 38 such agreements, opening access to new international markets. Trade with CEPA-partner countries amounted to Dh304.3 billion in the first half of 2026. The agreements help reduce customs duties, simplify trade procedures, encourage investment, and integrate the UAE more deeply into global supply chains.

Infrastructure development continues to play a significant role in facilitating future economic expansion. Recent projects include the launch of introductory passenger services by Etihad Rail between Abu Dhabi and Fujairah at the end of June and the announcement of Dubai’s Dh34 billion Metro Gold Line, a 42-kilometer route expected to be completed by 2032. In July, the UAE initiated the broader implementation of Jayanw, its national card payment system. Additionally, DP World and the Fujairah Ports Authority agreed to develop the Al Rugaylat and Dibba terminals to increase cargo handling capacity.

While the economic impact of these infrastructure and logistics initiatives remains to be fully quantified, the clear takeaway from available data is the growing contribution of non-oil activities to the UAE’s economic growth. Together with rising non-oil trade, these trends provide concrete evidence that the diversification of the UAE economy is accelerating and reshaping its growth trajectory.