Energy Policy and Diplomacy of the UAE and Other Resource-Oriented Countries in the Transition to Technological Development

Alisherbek Ilyassov^1*Yermek Chukubayev²Oksana Morgunova³

• ¹Al-Farabi Kazakh National University, Almaty, Kazakhstan
• ²Narxoz University, Almaty, Kazakhstan
• ³Peoples Friendship University of Russia, Moscow, Russia

The transition from a resource-based economy to alternative economic systems represents one of the most pressing challenges in the current global context. The environmental aspect significantly influences energy policy, serving as a foundation for transforming the economies of leading energy-exporting countries. The UAE presents a notable example of a successful transition from a resource-based economy to technology-driven development, as evidenced by its energy policy and diplomatic strategies. The aim of this study was to examine the global external energy policy and diplomacy of the UAE and other Persian Gulf countries energy policy and diplomacy incorporated a methodological approach combining qualitative and quantitative methods energy policy and diplomacy, as well as strategies employed by other countries, vividly demonstrates the global significance of these processes, focusing on its role in the profound transformation of the energy market. Methodologically, the study involved comparative analysis, as well as an assessment of global energy transition trends and their relationship with international diplomacy, using the UAE as a case study. The share of revenue from the UAE's oil sector in total exports declined from 93.8% in 2000 to 68.2% in 2023. Investments in the economy nearly tripled between 2005 and 2023, reaching $30.7billion. Findings from the model analysis indicate that an abrupt reduction in resource dependence could result in economic difficulties in the short term. However, in the medium and long term, this path is the most favorable, contingent upon the rapid expansion of high-technology exports. Based on the VECM results for the UAE, Saudi Arabia, Kuwait, and Oman, targeted recommendations for energy and economic policy can be formulated. Given that oil production acts as the main long-term determinant but remains largely unadjusted in the short term. In contrast, global oil prices and energy intensity exert strong short-term effects on GDP and exports, the energy policies of these countries should aim to diversify long-term development strategies in extraction and strengthen mechanisms for responding to external shocks. The practical application of these research results lies in their potential use for studying other oil-producing countries and devising recommendations for an effective transition from resource dependence to innovation-driven progress.