1960s the UAE has progressed from a largely subsistence economy to a developed one that provides one of the world’s highest standards of living. The main engine for the extraordinary growth and development of the economy has been the oil sector, although non-oil trade has played a remarkable role and all the emirates have begun to diversify their economies. The 1998 gross domestic product (GDP) was $47.2 billion. The total workforce of the UAE was around at 1,393,425 in 1999, with 65 % working in services. A unique feature of the UAE’s economy is its dependence on foreign labor. More than 90 % of the workforce is made up of expatriates.

Oil was first determined in Abu Dhabi in 1958. The government of Abu Dhabi owns a controlling interest in all oil-producing companies in the emirate. The largest concessions are held by Abu Dhabi Marine Operating Company (ADMA-OPCO), which is partially owned by British, French, and Japanese interests. One of the main offshore fields is located in Umm ash-Sha'if. Al-Bunduq offshore field is shared with neighbouring Qatar but is operated by ADMA-OPCO. A Japanese consortium operates an offshore rig at Al-Mubarraz, and other offshore concessions are held by American companies. Onshore oil concessions are held by the Abu Dhabi Company for Onshore Oil Operations (ADCO), which is partially owned by American, French, Japanese, and British interests. Other concessions also are held by Japanese companies.

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, the UAE has undergone a profound transformation from an destroyed region of small desert principalities to a modern state with a high standard of living. At present levels of production, oil and gas reserves should last for more than 100 years. contempt higher oil revenues in 1999-2000, the government has not drawn back from the economic reforms implemented during the 1998 oil price depression. The government has increased spending on job creation and infrastructure development and is opening up its utilities to greater private-sector involvement.