How did the UAE's economic focus shift after the initial oil discovery?

The correct response highlights the transformative economic impact that the discovery of oil had on the UAE. Initially, the economy was largely based on subsistence activities, with many communities relying on agriculture, fishing, and pearl diving for their livelihood. However, the discovery of oil in the 20th century marked a significant turning point, leading to a surge in wealth generation.

This shift was characterized by an influx of capital and investment, which allowed the UAE to rapidly develop its infrastructure, education, and healthcare systems, thereby enhancing the quality of life for its citizens. Oil revenues provided the foundation for diversifying the economy and investing in various sectors, positioning the UAE as a regional powerhouse.

By focusing on wealth generation, the UAE was able to move away from its previous economic constraints and harness its natural resources to foster growth, create jobs, and improve living standards, ultimately leading to a modern and diversified economy.