How did the discovery of oil in the 20th century affect the UAE?

The discovery of oil in the 20th century had a profound impact on the UAE, fundamentally reshaping the region's economy. Prior to the oil boom, the economy was largely reliant on traditional sectors such as fishing, pearling, and trade. However, oil transformed the economic landscape, introducing significant revenue streams and enabling large-scale investments in infrastructure, healthcare, education, and social services. This financial influx allowed for rapid modernization and development, attracting both skilled labor and international business, ultimately positioning the UAE as a key player in the global economy.

The emergence of oil as a primary driver of economic growth also diversified the UAE's income sources over time, leading to the development of sectors such as tourism, aviation, and finance, further enhancing its economic stability and resilience. The focus on oil and its derivatives allowed the UAE to invest in technology and renewable energy, diversifying away from a sole dependence on petroleum.

The other options do not accurately capture the extensive impact of oil. While fishing methods may have gradually improved due to economic growth, that was not the primary change. Decreased trade activity is contradictory to the expansion facilitated by oil revenues. Lastly, the need for foreign investment actually increased as the UAE sought to further develop its burgeoning economy and leverage global networks