The Middle East up close: the United Arab Emirates

In about 60 years the United Arab Emirates changed from small pearling and fishing towns into a global hub. It shows how a hot desert country can use, and try to move beyond, its oil.

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Place and environment

The United Arab Emirates (UAE) is on the Arabian Peninsula, on the coast of the Persian Gulf (also called the Arabian Gulf), next to Saudi Arabia and Oman.
It is a federation of seven emirates: Abu Dhabi (the capital and largest), Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The federation was formed on 2 December 1971 by six emirates; Ras Al Khaimah joined in February 1972.
It has a hot desert climate: very hot summers and very little rain. Inland are sand dunes reaching into the Rub' al Khali (Empty Quarter); the Hajar Mountains rise in the east.

From pearls to oil

Before oil, coastal towns lived from pearl diving, fishing and trade by sea. The pearl trade collapsed in the 1930s, partly because cheaper cultured pearls from Japan flooded the market.
Oil was discovered off Abu Dhabi in 1958, and exports began in 1962. Dubai found oil in 1966.
Oil money paid for roads, ports, airports, schools, hospitals and new cities, and drew in large numbers of migrant workers. Today most of the UAE's residents are foreign nationals.

Moving beyond oil

Oil will not last for ever, so the UAE has diversified its economy, especially in Dubai:
Trade: Jebel Ali Port (opened 1979) is one of the world's largest container ports.
Aviation: Emirates airline (founded 1985), and Dubai International is one of the world's busiest airports for international passengers.
Tourism and property: the Burj Khalifa (828 m, opened 2010) and the Palm Jumeirah, an artificial island built by land reclamation.
Challenges: almost no rivers, so most drinking water comes from desalination, which uses a lot of energy; high energy use for air conditioning; and pressure on fragile coastal and desert ecosystems. Dubai hosted the UN climate summit COP28 in 2023.
Worked example

Explain why Dubai developed trade, aviation and tourism instead of relying only on oil.

  1. Oil is non-renewable, so income from it will eventually fall.
  2. Dubai has a good location between Europe, Asia and Africa, ideal for a port and an airline hub.
  3. Diversifying into trade, aviation and tourism gives jobs and income that do not depend on oil.

Answer: Oil will run out, and Dubai's location suits trade and flights, so diversifying keeps the economy growing.

Key idea

The UAE is a federation of seven emirates (formed 1971) on the Gulf, with a hot desert climate. Pearling and fishing gave way to oil (found off Abu Dhabi in 1958). Dubai has diversified into trade (Jebel Ali), aviation (Emirates) and tourism (Burj Khalifa, Palm Jumeirah). Water comes mostly from energy-hungry desalination.

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2 more questions

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  1. Dubai and Abu Dhabi are two of the emirates that form the UAE. How many emirates are there altogether?

    Show the answer

    Answer: 7 emirates

    The UAE has 7 emirates.

  2. Which is the most populous city in the UAE?

    1. Dubai
    2. Abu Dhabi
    3. Riyadh
    4. Doha
    Show the answer

    Answer: Dubai

    Dubai is the largest city; Abu Dhabi is the capital.

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Sources and references

Checked by the GCSE-ready editorial team, 23 October 2026. Last updated 2 October 2026. Spotted a mistake? Tell us and we will fix it.

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