The U.A.E economy has witnessed rapid economic development. Even before 1957, the economy of the Emirates constituting the Federation, under their self-ruling system, was dependent on the available natural and human resources. Economic resources varied in each Emirate in accordance to the area, population and the abundance of the resources of each of them. They were almost wholly dependent on certain activities such as pearl fishing and trading, fishing, trade, agriculture, grazing and some handicraft industries. Each Emirate differed from the other by its relative dependence on special economic resources.
In 1957, another stage of economic development started. It was the beginning of the era of oil production and export in Abu Dhabi . Dubai followed suit in 1969, and then Sharjah. This stage witnessed the increasing importance of the oil sector thanks to the huge amount of revenue it provided in comparison with other sources of the national income. This rendered the traditional economic activities to become less important, particularly the sector of pearl fishing. Since then oil and its related industries have become the backbone of the UAE Economy.

The economic policy of UAE is based on safeguarding and respecting the individual freedom in ownership of the means of production, practising any type of business activities and providing all facilities that boost entrepreneurship. There are no restrictions on imports and exports apart from a few minor customs and administrative duties. The government plays a supervisory role in legislation, which organize the functioning of the various economic sectors while causing no hindrance to the business activities.