The UAE's non-oil foreign trade has seen a remarkable surge, reaching a staggering Dh1.937 trillion in the first half of the year, a 13.1% annual increase. This achievement is particularly noteworthy given the global economic challenges, including the Iran war, and the UAE's ongoing economic diversification efforts. Sheikh Mohammed bin Rashid's statement on social media highlights the significance of this growth, emphasizing that it goes beyond mere trade statistics, reflecting the country's economic strength and the world's confidence in the UAE. The UAE's economy is poised for a rebound in the second half of the year, with non-oil exports playing a pivotal role. The country's exit from OPEC and the Comprehensive Economic Partnership (Cepa) program have been instrumental in this growth, with the latter being a key contributor to the surge in non-oil foreign trade.
One of the most fascinating aspects of this story is the UAE's ability to demonstrate significant resilience during the conflict. The IMF's mission chief, Said Bakhache, attributes this to the country's sound fundamentals, ample policy buffers, advanced preparedness, and swift policy response. This resilience is a testament to the UAE's strategic foresight and its commitment to economic diversification. The Cepa program, in particular, has been a game-changer, reducing tariffs and removing trade bottlenecks, leading to a 26% annual surge in non-oil foreign trade in 2025.
The UAE's non-oil exports have achieved a record high of Dh452.8 billion in the first half of the year, a 23.9% annual increase. This growth is not just a number; it is a reflection of the UAE's strategic focus on diversifying its economy away from oil. The country's investments in trade and logistics infrastructure, including modern marine ports and airport infrastructure, have played a crucial role in attracting foreign investors and boosting non-oil foreign trade. The UAE's non-oil trade with Cepa-partner countries, which includes deals with India, Turkey, Jordan, Serbia, Vietnam, and Ukraine, has reached Dh304.3 billion in the first half of 2026, with imports and exports both showing significant growth.
The UAE's non-oil exports currently represent 21.7% of the country's total trade with Cepa-partner countries, up from 19.1% in 2022. This growth is a clear indication of the broad market access that the Cepa agreements are delivering for UAE products and companies. The UAE aims to further boost non-oil foreign trade as part of its national economic goals, and the country's investments in trade and logistics infrastructure are a testament to this commitment. Foreign direct investment into the UAE rose by about 6% to $48.24 billion in 2025, making it the ninth highest total in the world, and the top recipient of FDI in the broader Middle East region.
The UAE's main trading partners include China, Switzerland, and India, with non-oil trade reaching Dh180.7 billion, Dh138.4 billion, and Dh107.5 billion, respectively, in the first half of the year. The contribution of exports to the UAE's total non-oil foreign trade rose to 23.4% during the first half of this year, compared to 21.3% during the same period in 2025. The top 10 commodities, including gold, telecoms, and diamonds, accounted for about 67% of the UAE's total non-oil merchandise trade during the first six months. The UAE's economy is set to rebound in the second half of the year, with non-oil exports playing a pivotal role, and the country's strategic focus on economic diversification and trade integration is poised to pay dividends in the coming years.
In my opinion, the UAE's non-oil foreign trade growth is a testament to the country's strategic foresight and its commitment to economic diversification. The Cepa program has been a game-changer, and the UAE's investments in trade and logistics infrastructure are a clear indication of its commitment to attracting foreign investors. The country's ability to demonstrate significant resilience during the conflict is a reflection of its sound fundamentals and advanced preparedness. Looking ahead, the UAE's deeper trade integration, supported by the Cepa deals, and sustained investment in technology and human capital will reinforce non-oil growth and support resilience to external shocks. The UAE's economy is poised for a bright future, and its non-oil foreign trade growth is a clear indicator of its potential.
