Historically, the UAE's economy has been heavily reliant on oil and gas revenues. The country possesses significant oil reserves, and Petroleum exports have played a crucial role in its economic development. However, the UAE has been actively working on diversifying its economy to reduce its dependence on oil and gas. The UAE has undertaken ambitious efforts to diversify its economy and reduce reliance on oil revenues. The government has focused on developing sectors such as tourism, finance, real estate, manufacturing, renewable energy, and technology. This diversification strategy aims to create a more resilient and sustainable economy.

The UAE has established strong trade ties with countries around the world. It has a well-developed logistics and transportation network, including modern ports and airports, facilitating global connectivity and trade flows. The UAE is also a member of the Gulf Cooperation Council (GCC), which promotes economic cooperation among the Gulf countries. Dubai, in particular, is a regional financial center, hosting numerous international banks, financial institutions, and investment firms. The UAE has developed a robust financial services sector, offering a range of services such as Islamic banking, wealth management, and capital markets.

The UAE has managed to diversify its economy, especially in Dubai, but still relies heavily on oil and natural gas revenues, which remain in its economy, it plays a major role, especially in Abu Dhabi. More than 85% of the UAE economy in 2009 was based on oil exports, while Abu Dhabi and other UAEs remained almost conservative in their approach to diversification, with Dubai having relatively few oil reserves in its diversification policy. It was more courageous. In 2011, oil exports accounted for 77% of the UAE government budget.

Tourism is one of the largest sources of non-oil income in the UAE. Some of the world's most luxurious hotels are located in this country. The extensive boom in construction, an expanding production base, and a thriving service sector are helping the UAE diversify its economy. Across the country, there are now $ 350 billion in active development projects. The UAE is a member of the World Trade Organization and OPEC. The UAE government has long invested in the economy to diversify and reduce its dependence on oil revenues.

In terms of foreign trade, the UAE market is one of the most dynamic markets in the world, ranking among the 16 largest exporters and 20 major importers of goods. [37] The UAE's top five partner countries in 2014 include Iran (3.0%), India (2.9%), Saudi arabia (1.5%), Oman (1.4%), and Switzerland (1.2%). The top five suppliers to the UAE are China (7.4%), the United States (6.4%), India (5.8%), Germany (3.9%), and Japan (3.5%). The UAE is the second-largest country in the Middle east (after Saudi Arabia), with a gross domestic product (GDP) of $ 414 billion (AED 1.52 trillion) in 2018.

The UAE has invested heavily in developing its tourism and hospitality sector. Dubai, in particular, is known for its luxury resorts, shopping malls, entertainment attractions, and world-class infrastructure. The country attracts millions of tourists each year, contributing significantly to its economy. The UAE actively seeks foreign investment and has implemented policies to attract FDI. The government has introduced measures to simplify business setup procedures, enhance regulatory frameworks, and protect investor rights. The country's openness to foreign investment has propelled its economic growth and created a favorable environment for international businesses.

The UAE has established numerous free zones and economic hubs that offer attractive incentives and a business-friendly environment for foreign investors. Free zones, such as Dubai International Financial Centre (DIFC) and Jebel Ali Free Zone (JAFZA), provide tax exemptions, 100% foreign ownership, and streamlined business processes, making them attractive destinations for foreign businesses. The UAE, particularly Dubai, is a global business hub and a major center for trade and commerce. Its strategic location between East and West, state-of-the-art infrastructure, and world-class logistics facilities have made it an ideal base for regional headquarters, trading companies, and multinational corporations.