Points to Remember

Economical development is a community-

conscious process directed to create a
structural transformation, which will lead to
self-production capacity and increase the
average productivity of the individual and the
community.
The UAE did not pass through the development
stages that most developed countries seem to
have experienced. Rather, its large oil
revenues have allowed it to leap these stages
to the stage of high mass consumption.
Prior to the discovery of oil, the economy of
the UAE depended mainly on agriculture,
nomadic lifestyle, pearl trading, fishing, and
seafaring.
 Since 1970s, the UAE’s growth has depended
largely on the exploitation of oil.
 Oil and gas industries are well managed and
technology is continuously employed to
enhance productivity quality.
 Other mineral resources in the UAE are
divided into three categories: rocks, sands
and soils, and metals. The exploitation of
minerals is primarily restricted to rocks and
sands. Rocks and gravel are used for
construction.
The UAE Government promotes agricultural
development using the following incentives among
others:
1-Agricultural plots are granted free to UAE
citizens.
2-Land is leveled and prepared mechanically for
free.
3-Production inputs such as seeds, fertilizers, and
insecticides are provided at reasonable costs.
4-Water wells are drilled for free.
5-Free technical services such as installation of
water pumps are provided.
5-Farmers are granted loans for provision of
water pumps, fence wires, fishing boat
engines, green houses, and drip irrigation
systems.
6-Farmers are protected from foreign
competition through adopting a policy of
buying farmers’ products at good prices.
The main factor which has acted as a
constraint on UAE industrial development is
limited raw material.

On the other hand, the abundance of natural

mineral resources, along with the availability
of capital and labor, a well-established
infrastructure, a flexible employment policy,
and political and social stability have been the
main resources and incentives for
industrialization.
The successful implementation of human
development policies in the UAE, alongside
industrialization, urbanization and
modernization, are amongst the rare examples
of a country which has successfully used
natural resources for its long-term
development over a very short period of time.
1- What are the indicators of Human
Development in the UAE?
2- How does the UAE government promote
agricultural development?
3- What are the economic constraints faced by
UAE?
 Shihab,M. (2001). Economic Development in
the UAE. In United Arab Emirates: A New
Perspective. Pp:249-259. Trident Press
Limited: London