ABU DHABI: The United Arab Emirates entered 2026 with a strong run of official economic data showing broad-based expansion across non-oil activity, trade, banking and investment, reinforcing its position as one of the region’s fastest-growing economies. Releases published in the first quarter and early second quarter pointed to solid momentum carried over from 2025, with the Federal Competitiveness and Statistics Centre and the Central Bank of the UAE reporting gains in output, financial activity and domestic business conditions.
The Federal Competitiveness and Statistics Centre said UAE gross domestic product rose 5.1% year on year in the first nine months of 2025 to about AED1.4 trillion, while non-oil GDP increased 6.1% to more than AED1 trillion. The figures showed the economy continuing to diversify, with financial and insurance activities growing 9.0%, construction 8.7%, real estate 7.9% and manufacturing 6.9%, indicating that expansion was not concentrated in a single sector.
Trade data added to that picture. Government figures released at the start of 2026 showed the UAE’s non-oil foreign trade exceeded AED3.8 trillion in 2025 for the first time, up about 27% from the previous year. Non-oil exports climbed 45.5% to AED813.8 billion, while fourth-quarter trade alone surpassed AED1.1 trillion. The rise underscored the country’s role as a regional trade hub at a time when services, logistics, re-export activity and manufacturing continued to support overall growth.
Non-oil sectors extend growth base
The Central Bank of the UAE said in its March quarterly review that domestic conditions remained firm, with inflation averaging 1.3% in 2025 and expected to remain contained at 1.8% in 2026. The same report showed total banking system assets rising 17.1% year on year to AED5.34 trillion by the end of 2025, alongside an improvement in asset quality as the non-performing loan ratio declined to 3.3%, reflecting resilience in the financial system.
That strength carried into the opening months of 2026. The Central Bank of the UAE said in its February monetary and banking update that gross bank assets rose further to AED5.4725 trillion, while gross credit reached AED2.6306 trillion and deposits totaled AED3.4 trillion. The latest available investment data also highlighted the country’s international standing, with the Invest UAE platform reporting that inward foreign direct investment reached $45.6 billion in 2024, ranking the UAE among the world’s top 10 destinations.
UAE trade and finance reinforce economic expansion
Private-sector activity remained in expansion territory in early 2026, even as the pace moderated from February. S&P Global’s purchasing managers index for the UAE rose to 55.0 in February, the highest reading in a year, before easing to 52.9 in March, still above the 50 mark that separates growth from contraction. The pattern suggested that order books, output and hiring continued to advance, supported by domestic demand and the country’s strong services and commercial base.
Fiscal data also pointed to continuing strength in the public finances. The Ministry of Finance’s 2026 federal budget projected AED92.4 billion in revenue, up 29% from estimated 2025 levels, supported by corporate tax receipts, service fees and investment income. Taken together, the latest releases showed an economy expanding across multiple fronts, with growth anchored by non-oil sectors, record trade and a well-capitalized banking system. – By Content Syndication Services.