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17.11.2025
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The UAE's oil industry began developing in the 1960s, and since then it has become one of the main components of the country's economy.
The United Arab Emirates' economy is based on the oil industry, including both oil exports and re-exports. The country ranks fifth in the Middle East in terms of proven oil reserves. The first major deposits were discovered in 1962, and since then, the export of black gold from Abu Dhabi has become the most important part of the UAE economy.
According to analysts, the total proven oil reserves in the country amount to approximately 14 billion tonnes, which allows for projected extraction over the next 100 years. In the global rankings, the UAE holds sixth position in terms of daily production volume, reaching about 3.471 million barrels. By these indicators, the UAE is only behind the USA, Saudi Arabia, Russia, China, and Canada.
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Oil in the UAE is known for its high quality: most local grades are categorised as light crude, making them attractive to the international market due to their minimal sulphur content.
The daily oil refining volume in the country reaches 40 thousand tonnes. The government controls practically the entire oil sector, and the Abu Dhabi National Oil Company (ADNOC) plays a key role in managing and developing the industry, being responsible for oil extraction, refining, and export.
According to OPEC, Middle Eastern countries hold leading positions in global oil production volumes. Saudi Arabia ranks third, Iraq fifth, the UAE seventh, followed by Kuwait and Iran in eighth and ninth places respectively.
These high indicators are due to significant oil reserves in the Persian Gulf, as well as partnerships with international companies that support oil production development in this region.
Oil in the UAE includes the benchmark grade Dubai Crude Oil, which has been used since the 1980s as a standard for quality assessment and price determination for oil exported from Persian Gulf countries to Asia. This grade also serves as a reference point for setting prices for Russian ESPO and Sokol oils, which are also exported to Asian countries.
Saudi Arabia is the world's leading oil exporter, supplying approximately 7 million barrels daily to the market. The main buyers are countries such as the USA, China, Japan, India, South Korea, Singapore, and several European countries.
Saudi Arabian oil is available in a wide range, from heavy to ultra-light grades. Varieties include Arabian Heavy, Arabian Medium, Arabian Light, Arabian Extra Light and Arabian Super Light. About two-thirds of production consists of light grades, making Saudi oil particularly in demand on the global market.
Oil quality is typically determined by characteristics such as density and sulphur content. Light grades with low impurity levels are suitable for producing petrol, kerosene and diesel fuel. Viscous, thick oil is primarily used for manufacturing fuel oil and fuel intended for industrial furnaces and heating systems.
In 1955, when oil production in the United Arab Emirates was just beginning, daily production volume reached 290 thousand tonnes. Over time, the country's oil sector expanded significantly, and today it plays a vital role in the UAE economy.
Since its establishment in 1971, Abu Dhabi National Oil Company has played a key role in developing the country's oil industry. Despite established quotas regulated by OPEC, the Emirates sometimes exceed production volumes, as occurred in 1990 due to the Kuwait crisis.
Today, the majority of oil produced in the UAE is exported abroad, with Japan, the USA, and European countries being the main importers.
Major Oil Fields in the UAE:
In 2023, gas production in the United Arab Emirates reached approximately 49.2 billion cubic metres, indicating a 24.9% growth in volume compared to the previous year. According to information from the British company BP, the country's daily gas production level is about 56 million cubic metres, which emphasises the high pace of development in this sector.
Oil reserves in the UAE are estimated at 12.98 billion tonnes, but their distribution across the country is uneven. The main part of the deposits is concentrated in Abu Dhabi — which holds 94% of all oil reserves, whilst Sharjah and Dubai account for 1% and 4% of reserves respectively.
In recent years, the UAE has actively employed innovative technologies to increase production volumes. This has allowed the country to achieve indicators close to 140 million tonnes of oil per year. The majority of extracted oil is light in composition with minimal sulphur content, making it highly sought after on the global market.
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In January, UAE Minister of Energy Suhail Al Mazrouei outlined a strategic goal — to increase daily oil production to 3.5 million barrels. This initiative aims to strengthen the country's position in the global oil market and attract investment to the industry.
The United Arab Emirates' oil reserves amount to approximately 97.8 billion barrels. The majority of these resources are concentrated in the emirate of Abu Dhabi, which holds about 95% of all national oil reserves. Additionally, oil is also extracted in Dubai and Sharjah, but their share is significantly smaller.
In the Emirates, oil is primarily extracted on offshore platforms, and a significant portion of oil exports comes from offshore fields. This extraction scheme helps the country successfully meet international market demands.
Profits obtained from oil sales are evenly distributed among the country's citizens. This allows all native UAE residents to receive their share of oil revenues, maintaining a high standard of living for the population.
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