How the UAE Became One of the Most Developed Countries

Table of Contents


Since the formation of the United Arab Emirates, the country witnessed considerable development.

Just over half a century the country was considered not an economically active region. However, with the sources of energy, came the economic changes. But although the discovery of oil and gas made a significant contribution to the UAE economy, there are also such important factors of the country’s development as the political system, attention to the new and renewable sources of energy, dynamic business environment and openness to skilled foreign labor.

Main body

The UAE managed to implement a political system that is sustainable with the massive economic changes. It combines openness to foreign labor and investment with respect to the traditional ruling system. The President of the UAE Shaikh Khalifa emphasized that the peace and stability of his nation were “the fruit of the long and tedious march, hard work and perseverance led by the UAE’s great leader, the late Shaikh Zayed Bin Sultan Al Nahyan” (“UAE occupies a prominent place among advanced countries in the world” par.6). Reasonable policies resulted in the fact that the UAE ranked high in citizens’ trust in the government, high quality of life, decreased bureaucracy, and orientation on the economy based on technology, information, and knowledge (“UAE ranks among most developed countries” par.17). Thus, political stability is provided by the combination of the traditional ruling system with innovative policies in public and social spheres.

Before the discovery of oil and natural gas, the major part of the UAE economy relied on pearl diving, agriculture, and fishing. Natural energy resources gave a shove to the economy, but today the country is focused on improving diverse sectors of the economy including tourism, logistics, commercial services and consulting, and tourism (“The glorious four decades of the UAE…” par.7). Furthermore, according to Gerald Butt (2001), oil and gas are considered today more of a strategic sector of an economy, whereas trade and infrastructure are fundamental. The challenge is that it is risky to rely only on the oil market because there is a possibility that it can crush.

The tourist, commercial and business facilities in cities like Abu Dabi and Dubai are unique in their way. In 2015, according to livability ratings, Dubai has become an attractive place to live (Hanif par.2). The UAE effectively used cooperation with foreign labor capital and application of international business experience. The country has been very tolerant to inviting labor capital from abroad. Unskilled workers are needed because of the small population, and managerial laborers share their expertise (Nyarko 11).


Economic growth positively affected living stands in the country. The UAE system of healthcare was largely improved, and free access to all levels of education is provided for all citizens. The UAE earned the place among highly developed countries due to the ability to create a positive political and business environment, apply western knowledge and adapt to dynamic economic changes.


Butt, Gerald. “Oil and Gas in the UAE.” United Arab Emirates: A New Perspective. Ed. Ibrahim Abed and Peter Hellyer. United Arab Emirates: Trident Press Ltd, 2001. 232-48. Print.

Hanif, Nadeem. Dubai climbs up Economist’s ‘liveable cities’ rankings. 2015. Web.

Nyarko, Yaw. “The United Arab Emirates: Some lessons in economic development.” World Institute for Development Economics Research 11 (2010): 1-13. Web. 2015.

“The glorious four decades of the UAE…” The Emirates 24/7. 2011. Web.

“UAE occupies prominent place among advanced countries in the world.” The Gulf News. 2013. Web.

“UAE ranks among most developed countries.” The Emirates 24/7. 2014. Web.

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