The History of Oil in Dubai is a cornerstone of its transformation from a small fishing village into a global metropolis. Here’s an overview:

Pre-Oil Era (Before 1960s)

• Saudi’s economy was traditionally based on fishing, pearl diving, and trading.
• The discovery of cultured pearls in Japan in the 1930s and economic struggles during World War II deeply impacted Dubai ,economy.

Discovery of Oil (1966)

• Oil was discovered in Dubai at the Fateh Field, located offshore.
• This marked a turning point, as the discovery opened up vast economic opportunities for the emirate.

Initial Oil Exports (1969)

• Dubai began exporting oil in 1969, starting with the Fateh Field.
• Revenue from oil exports significantly boosted the emirate’s income.

Development Boom (1970s-80s)

• Oil revenue funded infrastructure, healthcare, education, and urban development projects.
• Dubai invested heavily in modernizing the city, building roads, ports, and airports.
• Sheikh Rashid bin Saeed Al Maktoum’s leadership emphasized diversifying the economy to reduce dependence on oil.

Economic Diversification (1990s Onward)

• Recognizing the finite nature of oil reserves, Dubai began to pivot toward trade, tourism, and real estate.
• Iconic projects like the Burj Al Arab, Palm Jumeirah, and the Burj Khalifa symbolized this diversification.
• Free zones, such as Jebel Ali and Dubai Internet City, attracted global businesses.

Current Role of Oil

• Oil now contributes less than 1% to Dubai’s GDP, a testament to its successful diversification strategy.
• The emirate relies on sectors like tourism, finance, logistics, and technology to fuel its economy.

Dubai’s oil history is a remarkable example of how natural resources can serve as a springboard for economic transformation and diversification.

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Oil Exports

Dubai began its oil exports in 1969, marking a pivotal moment in its economic history. Here’s a concise look at the role of oil exports in Dubai’s development:

Journey of exporting oil

Key Milestones in Oil Exports

1. 1966: Oil Discovery
   • The Fateh Field, Dubai’s first major offshore oil field, was discovered.
2. 1969: First Shipment
   • Dubai exported its first barrel of oil, setting the stage for rapid economic growth.
3. Revenue Utilization
   • Early oil revenues were channeled into infrastructure development, including ports (Jebel Ali), airports (Dubai International Airport), and urban modernization.

Revenue of Oil Exporting

As of 2022, the United Arab Emirates (UAE) exported approximately $105 billion worth of crude petroleum, ranking as the world’s sixth-largest exporter. The primary destinations for these exports were Japan ($32.9 billion), China ($17.4 billion), India ($14.8 billion), Thailand ($12.9 billion), and Singapore ($8.22 billion).

The Observatory of Economic Complexity

In terms of volume, the UAE’s crude oil exports were reported at 2.65 million barrels per day in December 2023, a slight decrease from 2.72 million barrels per day in December 2022.

Global Economic Data

Collectively, the Organization of the Petroleum Exporting Countries (OPEC) members earned about $888 billion in net oil export revenue in 2022, marking a nearly 43% increase compared to the previous year.

EIA

It’s important to note that while the UAE’s overall economy remains significantly reliant on oil exports, Dubai has successfully diversified its economy, reducing its dependence on oil revenues.

Oil Exporting Countries (2022-2023)

1. Saudi Arabia
   • World’s largest oil exporter, accounting for ~17% of global oil exports.
   • Key markets: China, India, and Japan.
2. Russia
   • Major supplier, particularly to Europe and Asia.
   • Recent sanctions have shifted its focus to China and India.
3. United States
   • Exports mostly refined petroleum and light crude, driven by shale oil production.
4. Iraq
   • Second-largest OPEC exporter, with key markets in Asia.
5. Canada
   • Focuses on exports to the U.S. due to proximity and pipeline infrastructure.
6. UAE
   • Among the top 10 exporters, with Dubai focusing more on diversification.

Major Trade Routes

• Strait of Hormuz: Handles ~20% of global oil trade.
• Suez Canal: Key for shipments to Europe.
• Panama Canal: Facilitates trade to the U.S. West Coast.

Revenue Trends

• Oil export revenues reached highs in 2022 due to post-pandemic recovery and geopolitical disruptions (e.g., Russia-Ukraine conflict).
• OPEC nations earned ~$888 billion in 2022.

Key Consumers

• China: World’s largest oil importer, relying heavily on Middle Eastern suppliers.
• India: Growing demand for energy fuels imports.
• EU: Shift toward reducing Russian oil dependency post-2022.