The economic redistribution in the UAE is particularly interesting as citizens do not pay income tax and due to a major population increase: 234,000 in 1970 to 10 million in 2019, with nearly 90% of the population made of expats. Aside from attempting to attract business and investment, one explanation for this influx of expats is that the majority of Emirati students seek work in the public/government sector, thereby creating openings in the workforce. This phenomenon occurs because the jobs in the public sector provide regular (and high) income, as well as a reliable pension. This idea is studied by scholars Knutsen and Rasmussen: autocratic regimes are as likely as democracies to adopt pension plans, though narrower and with the aim to appease groups who could play a role in delegitimizing the regime.[1]
The education system underwent major transformations. While in the 1950s only a few formal schools existed in the country, the following decades saw an expansion of the education system. Today, the UAE has a universal education system, with public schools funded by the government and a curriculum that is aimed at preparing students to participate in the development of the country. Citizens of the UAE can enroll in public schools for free, while expats have to pay a fee that varies from school to school. In addition, the UAE has many private schools that resemble education systems in Europe and the US, sometimes following the curricula of expats’ schools from their countries of origin. Around 40% of UAE students attend private schools.
Healthcare in the UAE is considered advanced, attracting many “medical tourists”. However, as is the case with education, healthcare also draws a clear distinction between UAE citizens and expats. Health insurance is mandatory only in Dubai and Abu Dhabi. That said, the UAE provides free public health care for its nationals, while expats are often forced to pay much higher fees for treatments. Due to the large number of expats, most healthcare facilities are private.
Housing and Land
One fascinating form of distribution UAE citizens Sultan Sooud Al-Qassemi brought my attention to was the distribution of land. Every few years the UAE announces plans to distribute land and housing to its citizens. As such, in 2016 365 houses and 5,463 plots of land were distributed following directives of the President. Similarly, in 2020 the UAE announced it will distribute $1.5 trillion worth of land plots and mortgages to ensure “Emirates live life of prosperity and happiness”. Often the distributed housing comes in the form of facilities that include mosques, parks and schools, further supporting the notion that the UAE works hard (and successfully) to fulfill the needs of the citizens.
In conclusion, the UAE’s thriving economy allows its government to redistribute public services to its citizens, in the form of public education, housing and public healthcare. However, this is not the case for the many expats who reside in the Emirates and often face high fees for the same services that nationals receive for free or at a much lower cost.
[1] Knutsen, Carl Henrik and Magnus Rasmussen (2018). The Autocratic Welfare State: Old-Age Pensions, Credible Commitments, and Regime Survival. Comparative Political Studies 51(5): pp. 659-695.
Manhattan of the Middle East 