Aletho News

The UAE’s reverse trajectory: From riches to rags

By Dr Zakir Hussain | MEMO | December 18, 2025

One of the most enduring and widely quoted dialogues in Indian cinema is: “Do not throw stones at others’ houses when your own house is made of glass.” Unfortunately, this wisdom appears to be lost on the United Arab Emirates. Instead of exercising restraint and responsibility, the UAE has increasingly been accused of conspiring with, financing, and backing a wide range of actors and armed groups that have contributed to chaos, instability, and even genocidal violence in several countries.

Over the years, the UAE has steadily expanded the scope of its controversial activities—from Libya and Sudan in North Africa to other mineral-rich Muslim-majority African countries, and further eastward to Afghanistan and Yemen. Its involvement in the Palestinian context also raises serious concerns, as there appears to be no clear moral or political limit to its actions. These interventions have not promoted peace or stability; rather, they have intensified conflicts, deepened humanitarian crises, and prolonged wars.

What makes this approach particularly perplexing is that the UAE itself lacks a credible and robust defensive shield to protect its own territory. It does not possess the capability to fully defend its iconic skyscrapers and critical infrastructure even against relatively unsophisticated, low-cost drones. A coordinated volley of such drone strikes would be sufficient to cause panic among the millionaires and billionaires who have invested heavily in Abu Dhabi and Dubai. Capital, after all, is highly sensitive to risk, and fear alone can trigger massive capital flight.

Against this backdrop, it is difficult to comprehend why Mohammed bin Zayed has chosen to indulge in a strategy of regional destabilisation and proxy warfare. History clearly demonstrates that mercenaries neither win wars nor sustain long, decisive military campaigns. They fight only as long as their financial incentives are met, avoid heavy casualties, and withdraw the moment the cost-benefit equation turns unfavourable.

The UAE has already experienced the consequences of such adventurism in Yemen, where its involvement against the Houthis proved costly and ultimately unproductive. The episode exposed the limits of Emirati military power and underscored its lack of preparedness for prolonged, brutal conflicts. The Emiratis have shown remarkable efficiency in event management, diplomacy branding, and global image-building, but they are ill-suited for sustained warfare or managing the complex realities of civil wars and insurgencies.

Despite these lessons, the UAE continues to deploy mercenaries, supply arms, and push destabilising agendas that risk mass civilian suffering. Such actions not only tarnish its international standing but also make the future of the UAE increasingly uncertain. More importantly, they significantly raise the vulnerability of those who have invested billions and billions of dollars in the country—particularly in real estate and financial assets that depend heavily on perceptions of safety and stability. The UAE has attracted the largest number of high net worth people since the Ukraine war started.

According to one estimate, in 2025 alone, approximately 9,800 high-net-worth individuals moved to the UAE. In 2024, the total number of millionaires who moved to the UAE from Russia, Africa, and the UK is around 130,000, thus fuelling its status as a premier global wealth hub. The reasons are zero tax, stability, and safety, lifestyle.

However, the overindulgence of MBZ and misuse of the sovereign wealth fund is likely to negate all the toil and troubles endured by the forefathers of the Emirates since 1972.

As an Indian, my concern is both professional and moral. A large number of Indians have invested substantial sums in the UAE, especially in real estate. It is therefore necessary to issue a timely warning and provide a realistic assessment of emerging risks, so that Indian interests can be protected before irreversible damage occurs.

I remain open to offering constructive suggestions and responsible assessments, with the sole objective of safeguarding long-term stability and protecting the legitimate interests of investors and the expatriate community.

December 18, 2025 - Posted by aletho | Economics, Illegal Occupation, Militarism | Africa, Libya, Middle East, Sudan, UAE, Yemen