The United Arab Emirates Case of Economic Success

Energy Sector
The energy sector comprises oil-related industries, natural gas and most recently 
renewable energies. According to Taylor-Evans and Coyne (2013) the UAE had 
in 2013 the world’s 7
th
largest proven oil and gas reserves and as such, «…the 
UAE’s 97.8 billion barrels of proven oil reserves will offer a steady flow for 
another 80 years at current production rates.». In addition, this turned the UAE 

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into the 5
th
largest producer of oil in the world, with 3,8% of global production, 
up from 3,2% in 2010 (Taylor-Evans & Coyne, 2013). Regarding gas production, 
the UAE was estimated to represent 1,6% of global gas supply in 2012. 
Nonetheless, reserves accounted for 3,2% of the world total.
In terms of development of the energy sector, the UAE has made efforts to 
maintain both upstream and downstream development by keeping the pace with 
the latest technological advancements within the industry. In addition, the UAE 
Government started to devote close attention to renewable energy and energy 
efficiency programs which aim at reducing the reliance on hydrocarbon 
resources (Taylor-Evans & Coyne, 2013). Clean energy projects in the UAE such 
as the Shams 1 and the Masdar City Solar Photovoltaic Plant are currently the 
two largest renewable energy projects in the Middle East (Masdar, 2016). 
Industry 
Industrial development has always played a vital role in promoting economic 
diversification and growth within the UAE. According to Ghanem (2001) 
industrial development was the engine of the economy by promoting forward 
and backward linkages that would stimulate growth and promote 
diversification. Industries such as cement manufacturing and metals kept its 
importance while new ones gained momentum, such as the automotive sector. 
In fact, the UAE emerged as what Taylor-Evans and Coyne (2013) coined of 
“metals production powerhouse” in the Middle East in recent years by having 
46% share of total Middle East aluminum production and the largest single-site 
smelting facility in the world
3
.
3
According to Taylor-Evans and Coyne (2013) DUBAL is the largest single-site smelting facility in the world. 

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By 2012, Industry as a whole accounted for 16% of the UAE’s GDP. This has been 
possibly mainly through the significant strides the UAE has been undertaking in 
adopting the latest technologies and best practices from world economies such 
as Germany and Japan (Taylor-Evans & Coyne, 2013). Petrochemicals, metals, 
ceramics and cement still dominate the UAE Industry sector. Nonetheless, sub-
sectors such as the automotive, chemicals, electrical machinery and power 
equipment, and food processing are gaining momentum, which has been 
propelled by the influx of foreign enterprises that bring to the UAE the most up-
to-date technologies and know-how (Taylor-Evans & Coyne, 2013).