The primary goal of this work is to assess the potential of solar energy as an essential future energy source in the oil-rich United Arab Emirates. The findings of this study are based on the national energy production and consumption portfolios, detailed quantitative analysis of the solar energy resource, the local operating conditions of solar installations and the current status of technology. This study also offers an extensive literature review on the development of solar energy in the UAE to investigate: (i) methods for evaluating the solar resource, (ii) the effect of the local environmental operating conditions on the performance of different technologies, (iii) strategies for financing projects and encouraging home-owners to install PV, (iv) and benefits of solar energy to the electricity generation, water production and transportation sectors.