How the UAE economy works
What the official statistics say about the UAE economy and how to read them: the size and growth of output, the split between oil and non-oil activity, inflation, central bank interest rates, the fixed exchange rate with the US dollar and the federal budget.
The UAE economy grew 6.2% in real terms in 2025, after 6.6% in 2024, according to data from the Federal Competitiveness and Statistics Centre (FCSC). In the first half of 2026, real GDP was AED 961.9 billion, 0.4% more than a year earlier, and non-oil activity made up 79.2% of it. Consumer prices rose 1.3% on average in 2025.
Real GDP, first half of 2026
AED 961.9 billion; +0.4% (non-oil +1.8%)
FCSC reported on 9 October 2026 that UAE real GDP reached AED 961.9 billion at constant prices in the first half of 2026, up 0.4% on the same period of 2025; non-oil GDP grew 1.8%, raising the non-oil share of the economy to 79.2% from 78.1%.
- Applies to
- UAE real GDP, first half of 2026 (preliminary)
- Source
- UAE economy reaches AED961.9 billion in H1 2026, with non-oil GDP growing by 1.8% (FCSC release, 9 October 2026), Emirates News Agency (WAM)
- Checked
Growth, oil and non-oil
Real GDP is measured at constant prices, so it shows changes in the volume of output rather than in prices. FCSC splits it into the hydrocarbon sector (oil and gas) and the rest of the economy, the non-oil GDP.
| Year | Real GDP | Non-hydrocarbon | Hydrocarbon |
|---|---|---|---|
| 2023 | 4.3% | 7.0% | -3.0% |
| 2024 | 6.6% | 8.6% | 0.6% |
| 2025 | 6.2% | 6.8% | 4.3% |
In the first half of 2026, non-oil GDP grew 1.8% on a year earlier, which lifted its share of the economy from 78.1% to 79.2%.
Prices, the dirham and interest rates
Consumer price inflation averaged 1.6% in 2023, 1.7% in 2024 and 1.3% in 2025, with 0.3% in Abu Dhabi and 2.8% in Dubai in 2025. The dirham is pegged to the US dollar at USD 1 = AED 3.6725. On 16 September 2026 the Central Bank of the UAE raised its Base Rate by 25 basis points to 3.90%, effective the next day, after the US Federal Reserve raised its own rate by the same amount.
Public finances
The federal budget for 2026 is AED 92.40 billion, with spending equal to revenue, up from AED 71.50 billion in 2025. The Ministry of Finance describes it as the second balanced federal budget in a row. It does not include the budgets of the individual emirates.
These pages report official figures with their dates and sources, and do not make forecasts. The USD to AED converter applies the pegged rate to any amount.
Guides on UAE economy
-
UAE GDP: size, growth and how the economy is doing
UAE GDP from official data: AED 961.9 billion of real output in H1 2026, growth by quarter and year, sector drivers, Abu Dhabi, Dubai and CBUAE forecasts.
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Oil and non-oil: how much of the UAE economy is oil
How much of the UAE economy is oil: the non-oil share of GDP, oil output and capacity, the 2026 production drop and rebound, leaving OPEC, and diversification.
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Why the UAE dirham is pegged to the US dollar at 3.6725
Why the dirham is pegged to the US dollar at 3.6725: how the Central Bank keeps the peg, and what it means for interest rates, prices, trade and conversions.
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UAE interest rates: the CBUAE base rate and why it follows the Fed
The CBUAE base rate explained: the current rate, why it follows the US Fed, recent changes, EIBOR and DONIA, and what moves mean for borrowers and savers.
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UAE inflation: how prices are measured and the latest rate
UAE inflation explained: the consumer price index, annual rates for 2023 to 2025, Dubai and Abu Dhabi CPI, what drove 2026 prices and the Central Bank forecast.
Calculators for this topic
USD to AED converter
Converts US dollars to dirhams and back at the official pegged rate.
Frequently asked questions
How fast is the UAE economy growing?
Real GDP grew 6.2% in 2025 and 6.6% in 2024, according to FCSC data. In the first half of 2026 it was 0.4% higher than a year earlier, with non-oil GDP up 1.8%, according to FCSC's preliminary figures.
How much of the UAE economy is oil?
In the first half of 2026, non-oil activity made up 79.2% of real GDP, up from 78.1% a year earlier, according to FCSC. The rest of the economy is the hydrocarbon sector.
What is the inflation rate in the UAE?
Headline consumer price inflation averaged 1.3% in 2025, after 1.7% in 2024 and 1.6% in 2023, according to FCSC data. In 2025 it averaged 0.3% in Abu Dhabi and 2.8% in Dubai.
What is the AED to USD exchange rate?
The dirham is pegged to the US dollar at USD 1 = AED 3.6725, the rate the Central Bank of the UAE publishes.
What is the UAE Central Bank's interest rate?
The CBUAE Base Rate is 3.90%, effective 17 September 2026, after a rise of 25 basis points that followed a rise in the US Federal Reserve's rate. Check the CBUAE's latest announcement, since the rate can change after any Federal Reserve decision.
How big is the UAE federal budget?
AED 92.40 billion for 2026, with spending equal to revenue, according to the Ministry of Finance. It covers the federal government only, not the separate budgets of the individual emirates.
Sources
Official and primary sources we used for this page, with the date we last opened each one.
- Financial Stability Report 2025, Table 1: Real GDP Growth and Inflation in the UAE (source: FCSC for 2023-2025)
- UAE economy reaches AED961.9 billion in H1 2026, with non-oil GDP growing by 1.8% (FCSC release, 9 October 2026)
- Exchange Rates (last updated Tuesday 20 October 2026)
- CBUAE Raises the Base Rate by 25 Basis Points (press release, 16 September 2026)
- UAE Federal Budget Yearbook 2026