UAE's Government and Social Controls

The UAE as a Developmental State

Introduction

In recent years, the UAE has been ranked as one of the most developed countries in the world: “it has achieved, throughout its united journey, record-breaking rates of growth in all fields, which has placed it at the top in terms of global competitiveness, according to reports by specialised regional and international organizations” (Wam, 2014). Its residents and citizens are viewed as happy, there appears to be sustainable growth in numerous fields, its economy is strong, trade is booming, tourism is increasing, and infrastructure is still growing. It provides a multicultural environment for expatriates and offers world-class educational opportunities (Gupta, 2018). However, there are some ways in which the UAE is still in a developmental stage. According to Gupta (2018) the UAE is still very different from other developed states in terms of its social and governmental views. Economically, the UAE is a powerhouse of progress which puts it on par with other developed states. Socially and governmentally it is quite different.

Economic Characteristics

Economically speaking, the UAE is a very developed state. Even as far back as the start of the 21st century it was obvious that the UAE was destined for great things, economically (Kawach, 2002). Just from 1990 to 2000, the UAE climbed nearly thirty ranks from the UN Development Program’s 77th position to the 45th position in terms of states with high future prospects (Kawach, 2002). On the human development index level, it was spending a great deal of investment to improve the quality of life of the people living there. Life expectancy had risen from 53 years of age in 1956 to 75 years by 1999 (Kawach, 2002). But at its core, the UAE lauded its commitment to Islamic virtues and ethics for this rise (Kawach, 2002). Alone among other developed states, it combined both modern sensibilities and wealth with traditional Islamic ideas and customs to create a unique state in the Middle East.

Today, the UAE is ranked as one of the most developed states in Western Asia (Global Edge, 2021). Its top trade partners are China, India and Saudi Arabia, and its main exports are oil, precious stones and metals, and electrical machinery. Services, industry, and manufacturing make up the bulk of its gross domestic product (Global Edge, 2021).

While Gupta (2018) argues that the UAE is behind the curve when it comes to liberal values, the 2021 Index of Economic Freedom indicates that the UAE has an economic freedom score of 76.9, which gives it the 14th freest economy in the 2021 index, a remarkable feat.

Social Characteristics

Social control is not really seen as one of the flaws of the UAE but rather as one of its features: it does not permit political dissent, and free speech is not entirely welcomed. However, the effect of this is that there is social uniformity and acceptance of the ideas and agendas that UAE leaders put forward. For most, the UAE represents a healthy, and functioning society. Gupta (2018), however, laments that social control of the type seen in the UAE is a major drawback when compared to other developed states for it infringes on the individual’s freedom of choice and places obstacles in his way in terms of becoming an entrepreneur: “This unjust social control does not simply stop at the social level – it leaks into the functioning of industry, creating another set of challenges. If we look at the types of companies that Dubai and the UAE have managed to lure in, it becomes clear that it is only really the financial and marketing departments. The heavy restrictions to what a resident in the UAE is allowed to express, think and scrutinize means there is no assurance of unbounding free expression.” And, yet, companies do come to the UAE because they find it a very hospitable state that is more than willing to grant business a great deal of freedom to conduct business. The complaints of individuals that there is not enough freedom can seem hollow when considered from this perspective. After all, even Gupta (2018) admits that “‘free zones’ such as Internet City, Media City or DIFC exhibit spaces independent of the Sharia law, providing loopholes for businesses to be able to carry out work under conditions of relative normality, away from regulation and restriction.” Yet the problem of censorship is still viewed as a roadblock to future progress: “the assurance of free expression in delimitate zones has not been enough to push industries like creative research, development and programming to take the leap into the Middle East’s financial hub” (Gupta, 2018).

Governmental Characteristics

In the UAE, the government is presided over by the seven royal families of the seven Emirates: “They vote for and make up the committees and councils of any federal responsibilities, ranging from defence to air traffic control. No institutions are democratically elected, and citizens do not have the right to influence government or set up their own political party” (Gupta, 2018). Thus, Gupta (2018) asks: “How developed is a country where citizens cannot even hold their rulers accountable for the actions they take, actions that affect them all?”

Yet the question is not necessarily altogether fair. The UAE has done considerably well under its current authoritative set-up. It is prosperous, and there are good schools and opportunities for its residents. The leaders of the UAE have a good sense of which direction they need to take to secure the state’s success, and their track record speaks for itself. The lament is that the UAE is not democratic enough—but the UAE shows that democracy is not necessarily synonymous with prosperity and success. It censors speech because it does not want turmoil or revolution in its borders. It promotes Islamic values and traditions because it believes this is the path towards integrity. What it lacks in democratic and liberal values it more than makes up for in terms of its commitment to virtue and self-accountability. The UAE has become a very wealthy state and its residents benefit from that prosperity—and it has done so without resorting to democracy or any of the various arbitrary freedoms that one comes to expect in the Western world. Therefore, when considering its characteristics as a developmental state, it is fair to wonder what the measure of development should be. Why should the Western democratic world be the benchmark of development? Furthermore, the Western world is undergoing its own crisis of character, as protests, revolts, demonstrations, riots, violence, and even political coups are seen from nation to nation throughout the West. In the UAE, the government may be authoritarian, but the state is stable, productive, and efficient. That should count for more in terms of developmental characteristics than the superficial promotion of liberal ideas that do not always translate into the betterment of society anyway.

The rule of law in the UAE gets a high ranking from the 2021 Index of Economic Freedom: property rights and judicial effectiveness both receive high scores in the 80s. Government integrity is lower with just a 66 ranking, but this may be because the UAE is still somewhat lacking in transparency, and one of the main criticisms of the state is that nepotism and corruption exist (2021 Index of Economic Freedom, 2021). All things considered, “the judiciary is not independent, and court rulings are subject to review by the political leadership, but the rule of law is generally well maintained” (2021 Index of Economic Freedom, 2021). At the same time, “mechanisms for enforcing property rights are predictable and fair, although each emirate establishes its own procedures for land ownership” (2021 Index of Economic Freedom, 2021). What especially works in the UAE’s favor when it comes to how the government relates well with business is that there is no income tax and no federal corporate tax: Different corporate tax rates exist in some emirates, and a value-added tax has been in force since 2018, [but] the overall tax burden equals 0.1 percent of total domestic income” (2021 Index of Economic Freedom, 2021). This makes the UAE quite an appealing state for doing business.

Moreover, the UAE “has cut the fees for business incorporation. Lowering the number of inspections and using a risk-based approach have made it easier to deal with construction permits” (2021 Index of Economic Freedom, 2021). However, it also forbids labor unions and workers’ strikes, which means the government is still somewhat authoritarian when it comes to employment.

Where Gupta (2018) is concerned is that the UAE has not adopted the liberal values and beliefs of the Western world, particularly when it comes to same-sex relationships. The UAE adheres to and enforces Sharia law, which means life is relatively conservatively lived in the UAE. But there are drawbacks for those who find themselves running afoul of the law: “In the UAE there are certain social freedoms that citizens in the generically ‘developed world’ take for granted. Homosexuality in the UAE is illegal; until 2017 bankruptcy would lead you straight to prison; and the feelings running through your mind if you were diagnosed with HIV/AIDS would be shadowed by the thoughts of possible deportation” (Gupta, 2018). Discrimination is acceptable in the UAE as there are no anti-discrimination laws like those found in the West. But this discrimination need not be seen as something nefarious. It is rather a useful political and social tool to keep the state united and on the same page. When too much freedom and license are permitted in a state it can lead to unwanted turmoil and chaos. The UAE’s leaders are not interested in having to deal with any such instability: they prefer to keep oppositional voices out of the way. If one does not like it in the UAE, one is free to live elsewhere.

Yet the perks of living in the UAE are numerous, and the fact that the government is so benevolent towards business with its zero corporate tax rate shows that the UAE understands what it is that drives economic progress: open the doors to companies that want to produce and can deliver, and the state will flourish. The UAE has shown that it is a friend to businesses that respect its values and customs, and it has even gone out of its way to accommodate foreign businesses with free zones that are not regulated by Sharia law. This shows the degree to which the UAE is willing to tolerate other ways of life, cultures and customs. It is not the kind of authoritarian state that one might find in North Korea: it is far more open, fair-minded, and accepting.

All of this indicates that the UAE has very strong developmental characteristics and that it should be considered a top-tier developed state. The fact that its Islamic traditions and values remain should not be seen as a strike against it in terms of development. These are part of its national character, and its national character is what has enabled it to achieve success over the decades. Who is to say that if the seven families of the Emirates were to resign from power and permit democratic elections that the UAE would be any more successful? The fact is that it would probably be far less successful because too many competing visions and voices would undermine the social, political, and economic fabric that has turned the UAE into a strong state. One need only look at the situation in Bahrain for confirmation of this argument: when multiple groups and political sects all start vying for power at once, it produces a destabilizing effect that can lead the state into a social, political, and economic death spiral. As far as the UAE is concerned, it is better to rule with a strong and firm hand than to relax one’s grip on government and permit various mobs to have more influence.

Future Challenges

Future challenges for the UAE remain much the same as they are for other Arab states: it lacks economic diversification and is still heavily dependent upon oil as its main resource export. It has seen rapid population growth, which may not necessarily be a problem but it does mean that care needs to be shown for the future of these people. Moreover, if oil prices decline once more as they did in 2020, the state will suffer substantially. It also has low water supplies and a high dependency on foreign labor.