The Economy of the UAE
Oil, Abu Dhabi and Sovereign Wealth
Abu Dhabi holds the bulk of the country's oil and invests the proceeds through large sovereign funds like ADIA and Mubadala.
Oil laid the foundation.
Discovery
Oil was found in the 1950s and exports began in the 1960s.
Funds
The Abu Dhabi Investment Authority invests abroad, and Mubadala and ADQ invest at home and overseas.
Strategy
The funds aim to earn long-term returns and build new industries.
Diversification
Non-oil sectors now account for a majority of the UAE’s GDP.
A savings account
Oil income is invested so future generations benefit after oil declines.
Assuming the UAE only sells oil
Most of its GDP is non-oil.
Key takeaways
- Abu Dhabi holds most oil.
- Sovereign funds invest revenue.
- Funds build new industries.
- Non-oil GDP dominates.
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