1007The Mineral Industry of the 
United Arab Emirates 
By Candice Stevens1 
 
 
 The petroleum industry of the United Arab Emirates contributed over 65%
of the gross domestic product (GDP) of $13.9 billion2in 1978 and an estimated
$16 billion in 1979. Increasing petroleum revenues have accounted for the
90% growth in the GDP of the seven former Trucial Coast sheikdoms since 1972.
In 1978, the emirates agreed upon the need for an overall development plan
and established a Federal Planning Authority to outline national objectives
of economic and social development. Emphasis was placed on diversifying sources
of income, using capital-intensive projects owing to the scarcity of labor,
developing education and training systems to meet manpower requirements,
and encouraging individual initiative in the private sector. The federal
budget of the United Arab Emirates was $2.8 billion in 1978 and $2.6 billion
in 1979, most of which was contributed by Abu Dhabi. Since 1974, the Abu
Dhabi Fund for Arab Economic Development has disbursed loans and grants of
more than $1 billion per year to foreign countries. 
 General aspects of exploration and development of oil and minerals in the
United Arab Emirates are under the direction of the Ministry of Petroleum
and Mineral Resources. Although united politically, the oil-producing emirates
of Abu Dhabi, Dubai, and Sharjah exercised independent control over their
petroleum policies. Abu Dhabi maintained a 60% share in major oil operations
and required 51% interest in all ventures to exploit natural gas. In 1978,
Abu Dhabi issued Law No. 8 for the conservation of hydrocarbon resources,
which required measures for prevention of damage to oil-bearing structures,
detailed studies for oil exploration and production pro- 
grams, and official permission to flare natural gas. In 1979, Abu Dhabi promulgated
new commercial regulations that required foreign firms to do business through
local branches and permitted trade licenses only to companies wholly owned
by Abu Dhabi nationals. Dubai nationalized its oil and gas industries in
1975 but retained foreign shareholders under management contracts. Sharjah
acquired 25% interest in domestic oil operations and opted for a 60% share
in any new vetures. Foreign oil companies were engaged in exploration in
the various emirates under diverse types of productionsharing agreements.

 Abu Dhabi and Dubai initiated infrastructure construction for their new
industrial centers. Fluor Corp. (United States) was contracted for overall
planning and construction management for the city of Ruweis in Abu Dhabi.
Projects included an oil refinery, a natural gas liquids (NGL) plant, a petrochemical
complex, a fertilizer plant, and an iron and steel complex. Infrastructure
for Ruweis, which was to require 10 to 12 years for completion, comprised
a port with three major shipping terminals, a residential community, and
airport modernization. The new industrial city of Jebel Au in Dubai was to
include an aluminum smelter, an NGL facility, a steel plant, a fertilizer
plant, and a petroleum refinery. 
 An expansion in port handling capacity was a major priority of the United
Arab Emirates. The Abu Dhabi Petroleum Ports Operating Co. was established
in 1978 with Lamnalco Ltd. (United Kingdom) as manager. The company was to
manage the Jebel Dhanna port, supervise construction of a new deepwater port
at Ruweis and an oil terminal on Zirku Island, and oversee feasi