Brief

Dubai’s GDP slips 2.3% in H1 2026 as services drive modest growth

Real GDP declined 2.3% YoY to Dh473 billion, but current‑price GDP edged up 0.2% as health, finance and construction sectors expanded.

By Felo News Desk · Published Sun, 18 Oct 2026 15:38:30 GMT

Dubai’s economy recorded a real Gross Domestic Product (GDP) of Dh473 billion in the first six months of 2026, a 2.3% decline from the same period a year earlier, according to figures released by the Dubai Data and Statistics Establishment at Digital Dubai. At current prices, GDP rose marginally by 0.2% to Dh505 billion.

What happened

The data show mixed sector performance. Healthcare and social work activities posted the fastest growth, up 14.3% YoY, increasing their contribution to Dh6.2 billion from Dh5.4 billion. Financial and insurance activities grew 8.8% to Dh65.9 billion, representing 14% of the economy, up from 12.5% a year earlier. Construction expanded 2.4% to Dh33.2 billion, while information and communication activities rose 2.7% to Dh24.7 billion. Electricity, water supply and waste management grew 5.4%, and government services and education grew 2.9% and 1.2% respectively.

Wholesale and retail trade remained the largest activity, accounting for 20.5% of GDP, but fell 6% in real terms despite a 2% rise at current prices. Transportation and storage dropped 7.4% in real terms, and real‑estate activity declined 2.5% even as its current‑price value rose 5.4% to Dh65.1 billion. Manufacturing saw a marginal real decline of 0.9%.

What the reports add

The release highlights that service‑sector growth helped offset declines in traditional sectors, cushioning the overall economy from broader global challenges. The report also notes that while real‑price GDP fell, the slight rise in current‑price GDP reflects sectoral price effects rather than broad‑based expansion.

What was said

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, said the results demonstrated “the strength of Dubai’s economic foundations and its ability to respond to global uncertainty.” He added that “the continued year‑on‑year growth achieved across a number of strategic and future‑focused sectors demonstrates the strength and depth of Dubai’s…”.

How it came about

The figures follow a period of global economic headwinds that have pressured commodity‑linked and trade‑dependent sectors. Dubai’s diversification into health, finance, technology and construction has been a policy focus in recent years, a trend reflected in the latest data. Earlier Felo coverage on Dubai’s real‑estate market and rental trends provides context for the sectoral declines noted in this report.