This dissertation includes six major chapters. Chapter I demonstrates the aims and objectives, research methodology, research hypotheses, thesis structure, and ethical considerations. Chapter II demonstrates the technical literature on the subject matter of the dissertation, examining the analytical method with regards to the United Arab Emirates (UAE), GDP structure, labour force structure, labour market, the Gulf nations, Gulf’s GDP structure, Gulf’s population, and Gulf’s gross capital formation. In short, the description of the economy of the country and also the Gulf countries. The labour market of the UAE is described in order to explore the components that shift the demand and supply of the market. It also includes reviews of the technical literature related to the objective of the study such as economic development, economic growth, human development, the role of the economic sectors, and the function of production and productivity. These consolidated data have reinforced the importance of productivity and the role of the economic sectors in enriching economic growth. The conclusion is that development is the main objective of achieving sustainable economic growth and human development in order to improve productivity. Chapter III includes the general research approach and methodology. This chapter examines research variables, research data sources, research hypotheses, and theoretical framework. This part illustrates and describes the methodology used, and classifies the structure of the dissertation. Four approaches are described in terms of methodology, such as capability approach, sectoral approach, industry approach, and country approach. This part illustrates the way the data and approaches were sourced for the analysis. In addition, the growth accounting model is described by calculating the results specifically for sectoral, industry, and country approaches. Mathematical equations are explained in this part and the secondary data methods are explained. Chapter IV includes the general findings for the dissertation structure approaches. First, human development is analysed to see the level of development in the country supported by figures and tables with the conclusion that the UAE reached a very high level of development. Second, the sectoral approach is presented with figures and a table to give more explanation with regards to the results obtained for the major economic sectors in the UAE. In short, the primary sector was found to be the key for successful economic growth. The tertiary sector was the main sector contributing to growth from 1990 to 2015. The economy of the UAE was labour intensive, which was the main source of growth. The secondary sector is followed by the tertiary sector in the contribution to economic growth. Third, the industry approach is presented in depth for two economic sectors, namely the secondary and tertiary sectors. In the secondary sector four economic industries are examined with the conclusion that the key to growth is not oil production but the manufacturing sector. Lastly, the country approach is presented, which examines the productivity between the gulf nations. The results found that the UAE was not the most productive among them but labour productivity was the highest among the examined nations. Chapter V generally addresses the conclusions and recommendations obtained from the results. Chapter VII elaborates on the main conclusions and the novelty of this thesis. In short, the overall productivity of the factors improves when the number of workers declines, in particular from 2010 to 2015. The tertiary sector is the main contributor to growth followed by the secondary sector. Real estate and trade business services are the main industries contributing to the growth of sectors. The UAE economy can be considered more diversified.