The UAE as a Developmental State: Economy, Society & Governance
This paper evaluates the United Arab Emirates as a developmental state by analyzing its economic, social, and governmental characteristics. Drawing on sources including the 2021 Index of Economic Freedom, the UN Human Development Index, and academic commentary, the paper argues that the UAE has achieved remarkable economic progress — ranking among the freest economies globally — while maintaining a distinctive authoritarian governance model rooted in Islamic values. The paper explores tensions between the UAE's prosperity and its restrictions on free speech, democratic participation, and individual liberties, ultimately questioning whether Western liberal democracy should serve as the universal benchmark for development. It concludes by identifying future challenges, including oil dependency and the need for economic diversification.
- Introduction: UAE's global standing and developmental tensions
- Economic Characteristics: UAE's economic growth, trade, and freedom ranking
- Social Characteristics: Social control, censorship, and business environment
- Governmental Characteristics: Authoritarian governance, rule of law, and tax policy
- Future Challenges: Oil dependency, diversification, and population growth
- Conclusion: UAE's top-tier developmental standing and strategic outlook
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What makes this paper effective
- The paper systematically organizes its analysis into discrete thematic sections — economic, social, and governmental — providing a clear and coherent framework for evaluating developmental status.
- It uses specific, credible data points (e.g., the UAE's 76.9 economic freedom score, its climb from 77th to 45th on the UN Development Program index) to ground its arguments in evidence rather than assertion alone.
- The paper engages critically with its sources, particularly Gupta (2018), by acknowledging counterarguments before responding to them, which demonstrates analytical balance.
Key academic technique demonstrated
The paper exemplifies source-driven argumentation with critical engagement: rather than accepting a single source's conclusions at face value, the author uses Gupta (2018) as a foil — acknowledging the critique of the UAE's social and democratic shortcomings — while marshalling contrasting evidence from the Index of Economic Freedom and other sources to build a more nuanced position. This technique of steelmanning opposing views before rebutting them strengthens the paper's overall persuasiveness.
Structure breakdown
The paper follows a five-part analytical structure: an introduction establishing the UAE's global standing and thesis tension; three body sections covering economic, social, and governmental dimensions; a forward-looking section on future challenges; and a conclusion that synthesizes rankings and strategic outlook. Each body section moves from descriptive evidence to normative interpretation, giving the paper a consistent rhythm that builds toward its central argument — that the UAE's developmental success challenges Western-centric definitions of progress.
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 expanding. 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, however, it is quite different.
Economic Characteristics
Economically speaking, the UAE is a highly developed state. Even as far back as the start of the 21st century it was clear that the UAE was destined for significant economic achievement (Kawach, 2002). From 1990 to 2000 alone, the UAE climbed nearly thirty ranks — from 77th to 45th position — on the UN Development Program's Human Development Index in terms of states with high future prospects (Kawach, 2002). At the human development level, it was spending considerably on improving the quality of life of its residents. Life expectancy rose from 53 years of age in 1956 to 75 years by 1999 (Kawach, 2002). At its core, the UAE attributed much of this rise to its commitment to Islamic virtues and ethics (Kawach, 2002). Uniquely among developed states, it combined modern sensibilities and wealth with traditional Islamic ideas and customs to create a distinctive 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 lags behind when it comes to liberal values, the 2021 Index of Economic Freedom indicates that the UAE holds an economic freedom score of 76.9, making it the 14th freest economy in the index — a remarkable achievement.
Social Characteristics
Social control is not generally regarded as a flaw of the UAE but rather as one of its defining features: political dissent is not permitted, and free speech is not entirely welcomed. The effect of this, however, is social uniformity and broad acceptance of the ideas and agendas that UAE leaders put forward. For most people, the UAE represents a healthy and functioning society.
Gupta (2018), however, argues that the degree of social control seen in the UAE is a major drawback compared to other developed states, as it infringes on individual freedom and creates obstacles for entrepreneurs: "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 on 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 hospitable state that is more than willing to grant businesses a great deal of freedom to operate. The complaints of individuals about insufficient freedom can appear hollow when viewed from this perspective. Even Gupta (2018) admits that "'free zones' such as Internet City, Media City, or DIFC exhibit spaces independent of Sharia law, providing loopholes for businesses to carry out work under conditions of relative normality, away from regulation and restriction." Nevertheless, the problem of censorship is still viewed as a roadblock to future progress: "the assurance of free expression in delimited 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).
Conclusion
The World Economic Forum, the Competitiveness Index, the World Bank's Doing Business Index, and the Global Innovation Index all rank the UAE "at or near the top of its region" (Signe, 2019). One need only consider that Dubai, "the UAE's most populous city, is now an international trade and business hub, with an economy organized around four pillars: trade, transport, tourism, and technology" (Signe, 2019). Abu Dhabi, the capital, "is home to the vast majority of the UAE's oil wealth" (Signe, 2019). It is the UAE's rich oil reserves — and the skill with which its leaders have managed that resource — that has driven economic progress in the Gulf State: "Abu Dhabi's oil is the reason the UAE holds some $1 trillion in assets and reserves through two of its major sovereign wealth funds, the Abu Dhabi Investment Authority (ADIA) and Mubadala" (Signe, 2019). Lesser states might have squandered this resource unwisely, but the rulers of the Emirates have been methodical and even-keeled in managing the state's wealth.
The UAE has been effective at attracting foreign investment and has a long-term strategy that should serve its population well. It has made peace with Israel and hopes to bring wider peace to the Middle East through greater collaboration and friendship, setting old grudges aside. According to Signe (2019) writing for the Brookings Institution, the UAE's model offers important lessons for other resource-rich nations. The UAE is well-positioned in the Middle East — and therefore in the world — as a hub for trade, services, investment, and transportation. For these reasons, the UAE's developmental characteristics should be regarded as very high.
References
2021 Index of Economic Freedom. (2021). UAE. Retrieved from
Global Edge. (2021). UAE: Economy. Retrieved from https://globaledge.msu.edu/countries/united-arab-emirates/economy
Gupta, R. (2018). Dubai — developed or developing? Retrieved from https://cambridgecompassmagazine.wordpress.com/2018/12/19/dubai-developed-or-developing/
Kawach, N. (2002). UAE among fast developing nations. Retrieved from https://gulfnews.com/uae/uae-among-fast-developing-nations-1.389216
Signe, L. (2019). What the UAE can teach. Retrieved from https://www.brookings.edu/blog/order-from-chaos/2019/12/19/what-the-united-arab-emirates-can-teach-resource-rich-countries-in-africa/
Wam. (2014). UAE ranks among most developed countries. Retrieved from https://www.emirates247.com/news/emirates/uae-ranks-among-most-developed-countries-2014-12-06-1.572337
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