UAE Economy Demonstrates Resilience with 0.4% Growth in H1 2026 Amid Regional Conflict

The UAE's real gross domestic product achieved an annual growth of 0.4 per cent, reaching Dh961.9 billion ($262 billion) during the first half of 2026. This expansion was primarily propelled by non-oil business activity, holding firm despite the impact of the Iran war.

According to a statement released on Friday by the Federal Competitiveness and Statistics Centre, the non-oil sector's contribution to the GDP rose by 1.8 per cent, capturing 79.2 per cent of the total during the six-month period.

The FCSC noted that these results "reflect the continued diversification of the UAE's economic base and the growing role of non-oil activities." The center added, "Their expanding contribution to economic activity demonstrates the diversity of growth drivers and supports sustainable and balanced growth across a broad range of economic sectors."

During the second quarter of the year, the UAE's real GDP stood at Dh476.9 billion, marking an annual decline of 2.1 per cent. Concurrently, non-oil activities contracted by 1.1 per cent as regional developments and travel disruptions impacted several key economic sectors, particularly tourism, transport, and trade.

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