The Economy of the UAE
UAE economy before oil
- depended on selling pearls
- many international brands used UAE pearls in the beginning for prestige
- UAE pearls were replaced by artificial Japanese pearls in the 1900’s
- caused the UAE’s pearl industry to plummet
- caused many local emiratis to shift to the oil sector
Economic Development
- is the planning for increased economic activities in order to raise the national production and the
growth of capita GDP
is through:
- development of government departments
- development of specialized institutions
- development in the private sector
Oil in the UAE
- found in the late 1950’s - ranked 5th in the world in terms of oil reserves
- country started to benefit from selling it once the (2008)
emirates were united - made it one of the highest rates of economic
- the government witnessed important economic & growth in the world
social developments - helped stimulate high level of capital flow &
- GDP increased from 20.2 thousand dhs in 1972 to economic diversification
62.4 thousand dhs in 1998 - had other economic activities that brought
- spending on education increased from 3k to 12.2k money to the country
- UAE has 9% of the world’s reserves - Oil represents 28-31% of GDP
- ranks 2nd in the Arab World & 4th in the world - Other sectors range between 69-72%
in terms of its reserves of natural gas - Private sectors achieved 31% of total
- UAE has 6 ports, 6 international airports investments in 2001. Such as manufacturing,
- Dubai port is one of the largest in the world trades, restaurants, hotels, & crude oil
- Fujairah is 3rd in the world in terms of - They represented 26.4% of total investments in
supplying ships with fuel agriculture, electricity, water, transportation, &
- Headquarters will be in the city of Green storage
Energy in AD
Production of oil in the UAE
- owns more than 90% of the oil & gas reserves
- gas is used in power generation & desalination of sea water
- both are used for public consumption & fuel for heavy industries
- state institutions run investments especially in the oil & gas sectors
- privatisation is encouraged to participate in essential industries
Page 1 of 9
, Finance
- Oil revenues represent the highest percentage of foreign trade, UAE strives to reduce dependence
of oils to other sectors
- Salaries have increased 4.3% annually; 23% from 1995 to 2000.
Foreign Trade (Oil in the UAE)
- plays an effective role with most revenue from crude oil
- there’s also gold billion trade (import and exports).
- re-export amounted to 29%
- free zone imports amounted to 16.6%
- economic diversification means having other economic activities that bring money to the country.
Non-oil economy
Industry
Investment
Export & re-export
Agriculture
Electricity & water sectors
Financial enterprise
Transportation, storage & communication
Toursim
Industry
- power of countries is measured by level of industry
- more advanced the industry is, the more reliant it is on modern technology hence more capable to
compete with world industries & more forceful economy
- many industries are reliant on agricultural produce such as food industry
- government has provided incentives & facilitates all necessary resources for building a highly
modernised industry
- established modern industrial zones built according to the highest international standards
- free zones
- encouraged private sectors
- governments helped with portions of some industries’ capital & offered shares for public
subscription
Investment
- reached 1.7 billion in 1972
- reached 51.4 billion in 1998
- growth rate of 14% higher than other developing & developed countries
- 227 additional schools were built in the Northern Emirates
- Higher education has ongoing expansion in the premises of colleges and residences for The
Emirates University and the Higher colleges of Technology to cope with the increasing numbers
of male and female students.
- a number of health centers and preventive medicine have been completed.
Export & Re-export
- average annual growth in wages from 1972-1998 was about 19.1%
- achieved a high rate growth in workers’ productivity reaching 6.9% per year due to training &
modern methods of work
- has the fastest growing & dynamic economy in the Arabian gulf from all kinds of economy
- is one of the highest rates of economic growth in the world
- helps stimulate high level of capital flow & ensure economic diversification
Page 2 of 9
UAE economy before oil
- depended on selling pearls
- many international brands used UAE pearls in the beginning for prestige
- UAE pearls were replaced by artificial Japanese pearls in the 1900’s
- caused the UAE’s pearl industry to plummet
- caused many local emiratis to shift to the oil sector
Economic Development
- is the planning for increased economic activities in order to raise the national production and the
growth of capita GDP
is through:
- development of government departments
- development of specialized institutions
- development in the private sector
Oil in the UAE
- found in the late 1950’s - ranked 5th in the world in terms of oil reserves
- country started to benefit from selling it once the (2008)
emirates were united - made it one of the highest rates of economic
- the government witnessed important economic & growth in the world
social developments - helped stimulate high level of capital flow &
- GDP increased from 20.2 thousand dhs in 1972 to economic diversification
62.4 thousand dhs in 1998 - had other economic activities that brought
- spending on education increased from 3k to 12.2k money to the country
- UAE has 9% of the world’s reserves - Oil represents 28-31% of GDP
- ranks 2nd in the Arab World & 4th in the world - Other sectors range between 69-72%
in terms of its reserves of natural gas - Private sectors achieved 31% of total
- UAE has 6 ports, 6 international airports investments in 2001. Such as manufacturing,
- Dubai port is one of the largest in the world trades, restaurants, hotels, & crude oil
- Fujairah is 3rd in the world in terms of - They represented 26.4% of total investments in
supplying ships with fuel agriculture, electricity, water, transportation, &
- Headquarters will be in the city of Green storage
Energy in AD
Production of oil in the UAE
- owns more than 90% of the oil & gas reserves
- gas is used in power generation & desalination of sea water
- both are used for public consumption & fuel for heavy industries
- state institutions run investments especially in the oil & gas sectors
- privatisation is encouraged to participate in essential industries
Page 1 of 9
, Finance
- Oil revenues represent the highest percentage of foreign trade, UAE strives to reduce dependence
of oils to other sectors
- Salaries have increased 4.3% annually; 23% from 1995 to 2000.
Foreign Trade (Oil in the UAE)
- plays an effective role with most revenue from crude oil
- there’s also gold billion trade (import and exports).
- re-export amounted to 29%
- free zone imports amounted to 16.6%
- economic diversification means having other economic activities that bring money to the country.
Non-oil economy
Industry
Investment
Export & re-export
Agriculture
Electricity & water sectors
Financial enterprise
Transportation, storage & communication
Toursim
Industry
- power of countries is measured by level of industry
- more advanced the industry is, the more reliant it is on modern technology hence more capable to
compete with world industries & more forceful economy
- many industries are reliant on agricultural produce such as food industry
- government has provided incentives & facilitates all necessary resources for building a highly
modernised industry
- established modern industrial zones built according to the highest international standards
- free zones
- encouraged private sectors
- governments helped with portions of some industries’ capital & offered shares for public
subscription
Investment
- reached 1.7 billion in 1972
- reached 51.4 billion in 1998
- growth rate of 14% higher than other developing & developed countries
- 227 additional schools were built in the Northern Emirates
- Higher education has ongoing expansion in the premises of colleges and residences for The
Emirates University and the Higher colleges of Technology to cope with the increasing numbers
of male and female students.
- a number of health centers and preventive medicine have been completed.
Export & Re-export
- average annual growth in wages from 1972-1998 was about 19.1%
- achieved a high rate growth in workers’ productivity reaching 6.9% per year due to training &
modern methods of work
- has the fastest growing & dynamic economy in the Arabian gulf from all kinds of economy
- is one of the highest rates of economic growth in the world
- helps stimulate high level of capital flow & ensure economic diversification
Page 2 of 9
