CWA # 2114
Global Politics Explainer
What makes the UAE a global player?
Explaining the Governance, Economy, People, and Strategic Influence of a Small Middle Eastern State
Oil was discovered in Abu Dhabi in 1958 and Dubai in 1966; this transformed the region’s economy and led to rapid urban growth.
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Glynnis Winona B
22 May 2026
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Who are the Emiratis?
Historically, the communities along the Arabian Gulf coast depended on pearling, fishing, and maritime trade for their living, while Bedouin tribes inland relied on oasis farming and herding. Around AD 630, the arrival of Islam began to shape the cultural identity of the people. As trade through the Gulf grew, European powers such as the Portuguese, Dutch, and British started to expand their influence in the region. During the 19th century, Britain made agreements with the coastal sheikhdoms called the “Trucial States.” Under this agreement, Britain managed external affairs, while local rulers controlled internal governance.
Oil was discovered in Abu Dhabi in 1958 and Dubai in 1966. This discovery transformed the region’s economy and led to rapid urban growth. In 1968, Britain announced its withdrawal from the Gulf, leading to a political change in the region. On 2 December 1971, under the leadership of Sheikh Zayed bin Sultan Al Nahyan and Sheikh Rashid bin Saeed Al Maktoum, the seven emirates namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, came together and formed the United Arab Emirates.
The Emiratis are people from the Bedouin tribes who inhabited the Arabian Peninsula. Their identity is deeply rooted in Islamic faith.
Today, Emiratis make up approximately 11.5 per cent of the UAE’s total population. The ruling Al Nahyan and Al Maktoum families are from the Bani Yas tribal confederation, which continues to play a key role in defining who Emiratis trust and do business with. Though the UAE practises a moderate form of Sunni Islam that emphasizes modernity, Emirati tradition and culture persist amid rapid societal changes.
Expatriates make up approximately 88.5 per cent of the population, one of the highest expatriate to citizen ratios in the world. The largest groups of expatriates originate from South Asia, Southeast Asia, Saudi Arabia, and Western countries. Arabs and Western expatriates make up the two largest migrant communities in the region. The country’s rich diversity of cultures has helped boost its economy. Emirati citizens enjoy certain privileges within UAE society. These benefits include healthcare, education, housing subsidies, and guaranteed employment. Expatriates interact with society largely through employment-based initiatives and benefit from them.
How is the UAE governed?
The UAE operates as a federation and a constitutional monarchy, meaning authority is divided between federal and emirate governments. The Federal Supreme Council includes the rulers of each of the seven emirates and is considered the highest political body in the country. By tradition, the ruler of Abu Dhabi becomes the President, and the ruler of Dubai becomes the Prime Minister and Vice President. Even though the UAE does not have electoral politics like Western democracies, a consultative assembly called the Federal National Council exists, consisting of partially appointed and partially elected members.
What constitutes the UAE economy?
The UAE economy is focused on diversification. Apart from the energy sector, the UAE has invested in tourism, financial services, and technology sectors as well. Over time, Dubai has become a hub for international commerce and trade. The UAE continues to focus on innovation for development. This has helped the UAE become a leader in global trade and finance. Recently, the UAE has also invested in renewable energy, artificial intelligence, and space.
What makes the UAE regionally and globally important?
The UAE’s strategic location near the Strait of Hormuz has added to its global significance. The US–Iran war further highlighted the role of the UAE in Gulf security and energy politics. UAE’s recent decision to step away from OPEC and OPEC+, signalled a more independent economic approach. The country has expanded its influence through diplomacy, technology, and humanitarian initiatives apart from the energy sector. Events such as Expo 2020, COP28 and "We the UAE 2031” vision reflect UAE’s approach towards innovation and economic growth.
References
“The UAE Government.” https://www.mofa.gov.ae/en/the-UAE/The-Government
“Why Did UAE Decide to Exit OPEC? Government Officials, Industry Experts Reveal Reasons behind Move.” Gulf News, April 28, 2026. https://gulfnews.com/business/energy/why-did-uae-decide-to-exit-opecgovernment-officials-industry-experts-reveal-reasons-behind-move-1.500522343
“History - the Official Portal of the UAE Government.” https://u.ae/en/about-the-uae/history
“Features of the UAE’s Solid Economy - the Official Portal of the UAE Government,” May 29, 2023. https://u.ae/en/about-the-uae/economy/features-of-the-uaes-solid-economy
“Society in the United Arab Emirates: A Detailed Analysis,” DubaiHavenHomes, April 8, 2025. https://dubaihavenhomes.com/articles/society-united-arab-emirates-exploration/
“Elegant Emirates,” August 4, 2023. https://elegantemirates.ae/emiratis-the-indigenous-people-of-the-uae/
About the author
Glynnis Winona B is an undergraduate student at the Department of International Relations, Peace Studies and Public Policy, St. Joseph's University, Bengaluru. She is currently an intern at the National Institute of Advanced Studies (NIAS), Bengaluru
