UK and GCC push investment ahead
British and Gulf officials have called on businesses and investors to begin turning a landmark free trade agreement into concrete partnerships without waiting for its formal ratification, as both sides seek to deepen economic ties and expand cooperation beyond traditional trade.
The calls came during the UK-GCC Strategic Dialogue Forum, organised by The Business Year in central London on Tuesday, bringing together senior officials, representatives of Gulf sovereign wealth funds and private sector companies to explore investment opportunities arising from the agreement.
The UK became the first G7 economy to conclude negotiations on a free trade deal with the six-member Gulf Cooperation Council (GCC) on 20 May 2026, when the British government announced that talks had been completed following nearly four years of negotiations that began in June 2022.
However, the agreement has yet to be formally signed and ratified, with both sides still working to finalise and legally verify its text before completing the necessary government and parliamentary procedures.
Dubai’s GDP reaches AED473 bn in h1 2026
The Government of Dubai has announced the emirate’s Gross Domestic Product (GDP) results for H1 2026, with real GDP reaching approximately AED473 billion, according to data released by the Dubai Data and Statistics Establishment at Digital Dubai.
The results reflect continued growth across a range of strategic sectors and activities, led by financial and insurance activities, human health and social work, information and communication, and construction.
The results underscore the resilience of Dubai’s economy, the diversity of its productive base, and the continued momentum across several high-value-added sectors. The emirate continues to develop an enabling environment for businesses, investment and talent, while strengthening its competitiveness and creating new opportunities for growth. These efforts support its economic objectives and reinforce its ability to adapt to changing conditions and turn them into opportunities.
Dubai’s economic performance in H1 2026 came amid rapid shifts in the global economic environment, which affected a number of activities to varying degrees. The diversity of the emirate’s economic base helped offset some of these impacts, with continued expansion in high-value-added sectors that are playing an increasingly important role in the economy.
Abu Dhabi’s Masdar city free zone in top 10
Masdar City Free Zone has been named among the world’s top 10 freezones in fDi Intelligance’s Global Free Zones of the Year Awards 2026 by the Financial Times.
The ranking comes as Abu Dhabi’s wider startup ecosystem continues to grow. The emirate entered Startup Genome’s global top 50 startup ecosystems for the first time in 2026, with the ecosystem valued at $73 billion.
Home to over 2.800 firms from 90 countries, they have worked alongside researchers, founders and some of the region’s leading institutions, according to Ahmed Baghoum, Chief Executive Officer of Masdar City.
The recognition is considered a strong international edorsement for their business offerings and knowledge-led environment. Separately, the number of new economic licences issued across Abu Dhabi rose 5 percent in the first half of the year, according to figures cited in the original announcement.
UAE economy contracts 2.1pc in 2q
The UAE economy slipped into reverse in 2Q as the war hit its non-oil engines. Real GDP contracted 2.1 percent y-o-y to AED 476.9 bn in 2Q 2026, with non-oil activity shrinking 1.1 percent as regional disruptions weighed on tourism, transport, and trade, according to preliminary data from the Federal Competitiveness and Statistics Center cited by Wam. The contraction left 1H growth barely in positive territory at 0.4 percent, with GDP reaching AED 961.9 bn (USD 262 bn).
Oil took the bigger hit: The headline contraction is nearly twice as deep as the non-oil decline, which means oil output fell considerably faster. On our rough math, oil GDP dropped around 5-6 percent y-o-y in the quarter. The FCSC didn’t publish a separate oil figure.
ICYMI- 1Q looked resilient at the time, with GDP up 3 percent and non-oil activity up 4.8 percent. But the war broke out in late February, so 1Q captured only about a month of disruption. 2Q is the first full quarter of data.
UAE economy will expand by 7.7pc in 2027
The International Monetary Fund (IMF) has projected that the UAE’s real GDP will experience robust growth, reaching 7.7 percent in 2027, following a 6.2 percent growth rate in 2025, and is expected to moderate to 3.5 percent by 2031.
During a press conference in Dubai, Dr Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, highlighted the UAE’s proactive response to regional challenges. Since the onset of the conflict in the area, the UAE has introduced a range of measures aimed at safeguarding its citizens, residents, and economy. These actions included creating alternative trade routes and adjusting trade flows in both the oil and non-oil sectors to ensure the uninterrupted movement of goods and commodities.
Azour noted that these initiatives, paired with efforts by other nations to diversify oil export pathways, have helped cushion the economic impact of disruptions such as the closure of the Strait of Hormuz. This strategic approach has also revitalised economic activity in the region.
Looking forward to 2027, Azour expressed optimism about a return to sustained economic growth. He attributed this to the UAE’s systematic policies aimed at bolstering the economy and minimising the crisis’s local repercussions.
A critical part of this recovery, he remarked, lies in restoring oil and gas production and exports to pre-crisis levels. He underscored that diversifying export channels and developing new transit routes remain key priorities for the UAE and neighbouring Gulf states in reducing risks and maintaining steady trade flows.