Country Profile: United Arab Emirates

Clockwise from top left: a farmer cutting the leaves of a palm tree in Sharjah; the sorting of fruit in Dubai; three women take a stroll on a Old Dubai pavement; construction workers take a break on a beach.

Photos: Abie Davies/Shutterstock; Alexey Stiop/Shutterstock; Andrzej Lisowski/Shutterstock; Rastos/Shutterstock

On Christmas Day, thousands of couples and families wander through the various exhibits at Abu Dhabi’s Louvre. Among the priceless items on display is a vase designed by Keith Haring and impressionist paintings from the likes of Manet and Renoir. It is an impressive feat, resulting from the city council’s $6 billion investment in the arts.

Abu Dhabi, the capital of the United Arab Emirates, has sought to establish itself as the cultural hub of the country, distinguishing it from Dubai, which is famous for its shopping malls and restaurants.

The UAE is a relatively new country, formed as a federation of seven emirates. Abu Dhabi, Dubai, Fujairah, Ajman, Sharjah and Umm Al Quwain were the founder members in 1971, with Ras al Khaimah joining the following year. Qatar and Bahrain took part in the country’s founding talks too, but subsequently withdrew.

Previously, the seven sheikhdoms were known as the Trucial States, allied to the British under a series of 19th-century protectoral treaties. The UAE’s population has grown rapidly, from just 70,000 at its founding to 9.4 million today. With the discovery of oil in the 1950s, the country has undergone a massive economic and industrial expansion.

Millions of people from around the world settle here, seeking work and the prospect of increased prosperity afforded by the UAE’s lack of taxation on income. Aside from oil, the country’s economy is largely tourism-based, with 7.8 million migrants supporting its financial and service sectors and making up the majority of the country’s population. By contrast, Emirati citizens are only a small minority and enjoy free education, housing and healthcare.

Much of UAE’s rapid development can be attributed to the exploitation of migrant workers. Cases of withheld wages, confiscated passports and racial discrimination have been well-documented.

Dubai’s Expo 2020, held a year late due to Covid restrictions, saw a new metro station built two hours from downtown Dubai. Expo was advertised as an opportunity for every country to showcase its technological and cultural offerings, attracting businesses and celebrities alike. But workers, primarily from India and other Global South countries, had a different experience. In order to secure work, many paid fees to recruiters and became heavily indebted, even though such practices are illegal in the UAE. Upon arrival, wages were reportedly not fully paid on time, and workers faced racial discrimination.

The government has attempted to rehabilitate its image in line with the sensibilities of the Western expats who now call it home. Dubai opened the Gulf’s first metro system in 2009, complete with women-only carriages and driverless trains. Disabled people, known as ‘people of determination’, are being granted increased protection from discrimination, as well as exemption from public transport, vehicle registration, parking, museum and public park fees.

In 2022, the government announced the country’s first ever corporation tax, in line with neighbouring Qatar and Saudi Arabia, with the rate beginning at nine per cent on profits exceeding $102,000 per year. However, individuals can still gain income from employment, real estate or equity investments without paying any tax. Recent economic reforms suggest the UAE is attempting to shed its reputation as a country solely dependent on oil revenues. But reform of the political system – fashioned to service the exploitation of natural resources and overseas labour – remains a distant prospect.