Dubai GDP growth driven by trade and construction

Dubai’s gross domestic product (GDP) rose in the first quarter of 2026, driven by strong growth in the trade and construction sectors.

GDP grew 2.4 percent year on year to AED232 billion ($63 billion) despite the impact of the US-Iran conflict, the UAE state-run Wam news agency reported.

The war started on February 28 and an interim peace deal was signed last month. However, US President Donald Trump announced on Wednesday that the agreement to end the war with Iran was “over”.

Helal Saeed Almarri, director general of the Dubai Department of Economy and Tourism, said the emirate’s economic growth continues to be anchored in proactive strategic planning and deep-rooted resilience across key sectors.

Wholesale and retail trade was the largest contributor to Dubai’s economy, accounting for 22 percent of GDP after growing 2.6 percent year on year to AED51 billion.

The real estate sector expanded by 3 percent, while construction rose 8 percent compared with the same period in 2025.

“Supported by swift, prudent action taken over recent months, Dubai has retained the robust foundations that will continue to support our long-term growth,” said Hadi Badri, CEO of the Dubai Economic Development Corporation.

In April, tourism revenue losses in the GCC arising from the conflict were estimated at between $13 billion and $32 billion, Gulf Statistical Centre secretary-general Jasem Albudaiwi said.

In May, Fitch Ratings projected that UAE real GDP would shrink 4.8 percent in 2026, while non-oil GDP was expected to contract 3.2 percent.

Further reading:

• Accor expects full recovery for Dubai hotel market next year
• The economic consequences of the peace … for the UAE
• ‘War opened doors for us’, says Dubai trade chief