Dubai's gross domestic product hit Dh232 billion ($63.2 billion) in the first quarter of 2026, anchored by a well-balanced economy reflecting the emirate's diversification efforts despite economic challenges resulting from the US-Iran war.GDP in the three months ended March rose by 2.4 per cent year-on-year, the Government of Dubai Media Office said in a statement on Wednesday. The US and Israel launched strikes against Iran on February 28, leading Tehran to retaliate against its Gulf neighbours and enforcing a four-month blockade on the Strait of Hormuz, which is vital to energy supplies.Wholesale and retail remained the highest contributor, adding 2.6 per cent annually to reach nearly Dh51 billion, equivalent to 22 per cent of the economy, while financial and insurance grew 6.5 per cent to hit Dh32.4 billion, representing 14 per cent of GDP, the GDMO said.Real estate climbed 3.1 per cent to generate Dh26 billion, more than 11 per cent of GDP.Health and social work activities posted the highest growth rate at 17.5 per cent at a value of Dh3.6 billion, followed by electricity, gas and water, and construction, adding 8.4 per cent to hit Dh4.3 billion, the GDMO said.Information and communications climbed 2.7 per cent to Dh12.1 billion, while administrative and support services grew 3.6 per cent to Dh10.5 billion.“Dubai’s economic growth continues to be anchored in visionary leadership, proactive strategic planning, and a deep-rooted resilience across our key sectors,” said Helal Almarri, director general of the Dubai Department of Economy and Tourism.“Dubai’s growth narrative is defined by a commitment to long-term objectives and successive quarters of strong performance are not coincidental – they are the product of deliberate policy, structural depth, and an economy built to perform regardless of external conditions.”Dubai, a vital commercial and financial centre in the Middle East, has maintained the strength of its economy on several government programmes designed for diversification and long-term growth.The emirate has largely resisted the slump predicted by some analysts, especially under the circumstances presented by the fallout of the US-Iran war.Dubai’s growth is also in line with the broader efforts of the UAE government, which continues to encourage entrepreneurship and economic participation, and attract more investments.Foreign direct investment into the UAE rose by about 6 per cent to reach $48.24 billion in 2025, the ninth-highest total in the world, the UN Conference on Trade and Development said in a report on Wednesday.Play00:40 'Etihad Rail reinforces UAE’s global hub status'On Wednesday, the IMF cut its 2026 growth forecast for the Middle East to 0.7 per cent, a 1.2 percentage point downgrade from April, citing the fallout from the Strait of Hormuz closure on regional energy exports.In May, the ratings agency Fitch retained its long-term issuer default rating of AA- for the UAE, stating that oil export revenue, due to higher crude prices, is expected to remain strong despite the conflict and is to offset any immediate negative impact.“Despite global and regional challenges, the UAE's economy continues to thrive, proving its remarkable resilience and stability,” Saeed Al Hajeri, Minister of State at the UAE Ministry of Foreign Affairs.“Our economic strength stems from historically solid fundamentals, global connectivity, institutional depth and an ability to be agile in response to changing market forces. This powerful combination of factors will allow us to emerge even stronger from current geopolitical dynamics.”Dubai's non-oil private sector economy also grew in June, as businesses raised output, with the rate of expansion picking up to the fastest rate since March, the seasonally adjusted S&P Global UAE Purchasing Managers' Index showed.“Dubai continues to strengthen its economic ecosystem and enhance its business environment by investing in key enablers that drive growth, foster productivity and create new opportunities,” said Hamad Al Mansoori, director general of Digital Dubai.“These efforts will contribute to achieving further economic milestones in the future and reinforce Dubai’s position as a global hub for business, investment and talent.”