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The United Arab Emirates (UAE) has an economy that has historically been influenced to a great extent by oil and natural gas. The discovery and commercial exploitation of petroleum transformed the UAE from a relatively small trading economy into one of the wealthiest economies in the world. Oil revenues have played a major role in financing infrastructure, public services, industrial development, foreign investment and economic diversification. At the same time, the UAE has increasingly attempted to reduce its dependence on hydrocarbons by developing trade, tourism, logistics, finance, manufacturing and other non-oil sectors. These developments are highly significant for India because the UAE is one of India's most important trading and investment partners. The UAE's oil resources are concentrated mainly in Abu Dhabi, which possesses the overwhelming majority of the country's petroleum reserves. The emirate has therefore historically generated a large share of the UAE's government revenues and export earnings through crude oil and petroleum products. Oil exports provide foreign exchange earnings, strengthen government finances and enable large-scale investment in infrastructure. The revenues generated from petroleum have supported the construction of modern ports, airports, roads, industrial zones and communication networks. These facilities have subsequently strengthened the UAE's position as a major centre of international trade. Oil has also influenced the structure of __________ _______ _________ ___ _________ ______.
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