The United Arab Emirates (UAE) has the seventh largest proven oil reserves in the world at 97.8 billion barrels, according to the Oil and Gas Journal in January 2009. The UAE also has the sixth largest proven natural gas reserves in the world at 214 trillion cubic feet. It is an important oil and natural gas producer and is a member of the Organization of the Petroleum Exporting Countries (OPEC).

The UAE is a federation of 7 emirates with the second largest economy in the Arab Middle East after Saudi Arabia. The emirate of Abu Dhabi is the focal point of the UAE's oil and gas industry, followed by Dubai, Sharjah, and Ras al Khaimah. While Abu Dhabi is the hydrocarbon and industrial center, Dubai is the trading, financial, and tourist center of the emirates. As a result of a successful effort at economic diversification, the finance and service sectors in Dubai are making the city a favored base for multinational corporations in the Gulf.

The UAE is in the middle of a major expansion program of its hydrocarbon sector mainly through the use of enhanced oil recovery techniques at existing fields. Projects to develop natural gas from associated and non-associated fields are also underway. The UAE has suffered from a shortage of natural gas in recent years as domestic demand for electricity generated in gas-fired plants has continued to rise, fuelled by generous subsidies, as well as the rapid development of the UAE as a regional commercial hub, and the increased delivery of industrialization projects using gas as a feedstock. However, despite the UAE's large natural gas reserves, high extraction costs and sulfur content are major issues in their development.

In late November 2009, Dubai World, a Dubai state-owned holding company, announced that the company would seek a standstill agreement with its creditors and an extension of loan maturities.  This announcement caused a drop, at least temporarily, in financial markets worldwide.  By the end of November 2009, it was still unclear what impact the announcement would ultimately have on Dubai and world financial markets.