The fundamental base of the UAE's economy is the production and export of crude oil and gas. Current oil production is around 2.2 million barrels per day,
the bulk of it from the Emirate of Abu Dhabi, which also has nearly 100 billion barrels of recoverable reserves. Other oil producers are, in order of importance, Dubai, Sharjah and Ras al Khaimah.

While oil has fueled the UAE's rapid growth over the past couple of decades, other sectors of the economy have also grown fast, in particular external trade. The commercial center of Dubai, and its adjacent Free Zone of Jabel Ali, has attracted extensive foreign investment, with well over US$ 1 billion being invested, while the East Coast port of Fujairah also has a thriving Free Zone. The twin ports of port Rashid and port Jebel Ali, in Dubai and Fujairah
are among the top 40 container ports in the world, and the country's ports now handle nearly three million container units a year.

Also contributing to the diversification of the economy, and to the emergence of the United Arab Emirates as a central hub for the Middle East and as a half-way point between the manufacturing economies  of the Far East and the consuming economies of Europe are the country's six international airports, in Abu Dhabi, Dubai, Sharjah, Ras al Khaimah, Fujairah and AlAin. The two largest, Abu Dhabi and Dubai, handle a total of around six million passengers a year, as well as a growing amount of freight.

Complementing the airports and seaports is one of the most sophisticated telecommunications networks in the world, with over 700,000 telephone lines and with direct dialing facilities to over 150 countries, and with a rapidly growing computer data system, facilitating rapid communications for government, the commercial sector and private individuals alike.

Substantial investment in the country's infrastructure has also included the building of a number of major power generation and desalination plants, producing both sufficient electricity to satisfy demand and enough water not only for the needs of the population but also to water the nearly 100 million trees planted in the last 25 years.

Oil and related industries now represent a declining proportion of the Gross Domestic Product, GDP, accounting for 39% in 1993, the last year for which figures are available. National GDP in 1993 was 131,660 million UAE Dirhams (US$ 35.9 billion).
 

The Weakness in recent years of international oil prices has helped to account for the rising share of GDP being provided by other sectors of the economy, including construction and real estate, trade, tourism and agriculture.
Despite the largely arid nature of the country, which has low rainfall and no permanent rivers, investment in agriculture, aided by supplies of water from the desalination plants, has succeeded making the country increasingly self-sufficient in a variety of a agricultural crops, like strawberries, even being exported to Europe.
The county's largest trading partner is Japan, which takes the largest share of the UAE's oil and gas exports, and also is the largest supplier of imports, mainly of vehicles, electronics and consumer items.