Until the first oil exports in 1962, pearl production, fishing, agriculture, and herding dominated the economy of the United Arab Emirates. However, since 1973’s sharp rise in oil prices, it is petroleum that has dominated the economy, accounting for most of its export earnings and providing significant opportunities for investment. The UAE oil and gas reserves will last for more than 150 years at present production rates. Abu Dhabi produces 85 percent of the 2.3 million barrels/day total.

The most aggressive non-oil expansion has been in Dubai, which has seen major construction over the past few years and is still in full spate. Projects include two artificial islands on which to locate tourist resorts, an under-sea hotel, the world’s tallest building and an indoor (refrigerated) ski slope.
More than 200 factories operate at the Jebel Ali complex in Dubai, which includes a deep-water port and a free trade zone for manufacturing and distribution in which all goods for re-export or transshipment are wholly exempt from duty. Apart from activities within the free zone, the UAE requires at least 51 percent local citizen ownership in all businesses involved in trading activities. Foreign companies may register their branches to perform certain activities permitted under the regulations. Such branches must appoint a local agent..

As a member of the Gulf Cooperation Council (GCC), the UAE participates in the wide range of GCC activities that focus on economic issues. These include regular consultations and development of common policies covering trade, investment, banking and finance, transportation, telecommunications, and other technical areas, including protection of intellectual property rights. There are also moves toward a unified currency across the GCC.
The UAE has an annual trade surplus of around $10-12 billion and Dubai especially has succeeded in attracting many multinationals to establish regional headquarters in the emirates. Its Internet City is also becoming a regional leader in that field.