In recent years, oil and gas industries in the United Arab Emirates (UAE) experienced economic challenges brought about by changes happening in the world market. Consequently, given the economic challenges and the instability of the oil and gas sector in the UAE, the level of happiness of the employees may somehow be negatively affected. Nowadays, different companies not only oil and gas industry pose a great challenge towards happiness of employees. Study on employees’ happiness has recently gained much attention due to its emphasis in organizational studies and the impact it has on overall employee performance. This research study aims to investigate and critically assess the common attributes that affects happiness of employees in the oil and gas industry in Abu Dhabi, UAE. In addition, this study intends to examine the relationship between happiness of employees and productivity in the said sector in the midst of the present challenges happening in the oil and gas sector in the Middle East region. Essentially, this research consists of two main objectives which include: (1) To identify the internal and external factors affecting the happiness of employees, and (2) To investigate how these factors related to employee’s productivity. To achieve the aims of this research, a quantitative research method will be applied in this study. Specifically, a survey research will be used to gather data who are mainly present employees on the selected oil and gas company in Abu Dhabi, UAE. Findings will be tabulated and analyzed in relation to the objectives of the study using IBM Statistical Package for the Social Sciences (SPSS). The expected outcomes of this study would be beneficial to prove and validate factors that affects employee’s happiness and the link to employee productivity thus, it might provide insights on companies to adopt ways in sustaining or increase the employees’ happiness in the oil and gas industry