The UAE is politically stable. The ruling families and their close allies control all key government positions as well as judicial appointments. Close allies of the ruling families generally hold other ministerial positions, though there has been an increasing emphasis on technocratic ability. Emirati citizens are broadly content with their leadership and the system of governance; expatriates have low expectations of influence over government policy. The consolidation of power by Abu Dhabi's crown prince Mohammed bin Zayed al-Nahyan means that there are unlikely to be significant shifts in domestic policy for the UAE, ensuring that the UAE remains the US's most reliable security partner in the region, and increasing oil exports to Asia. Moreover, the succession plan to the next ruler is clear: Mohammed bin Zayed Al Nahyan will eventually replace his brother, Khalifa bin Zayed Al Nahyan. There is no organised political opposition, and speech that challenges government policy is punishable by law. Political parties are illegal. 

The rulers of the emirates retain considerable autonomy at the local level, though Abu Dhabi – with some input from Dubai – dominates national-level decision making and foreign affairs. Although there are some policy disagreements between the emirates, these are generally kept within the ruling families.

The UAE has adopted a more active foreign policy in recent years, increasing its political and military role across the Middle East and North Africa. It will likely remain politically – and in some cases militarily – active in the region. The UAE and Saudi Arabia have a close relationship. The UAE has broadly supported Saudi foreign policy in the Middle East, including the military intervention in Yemen since 2015, the blockade of Qatar and the kingdom’s strong stance against Iran’s influence in the region. Although the UAE and Saudi Arabia differ in their respective approaches to certain issues, they will likely remain broadly aligned over the coming years.

With respect to Yemen, the UAE officially completed the withdrawal of its military forces from the Yemen conflict in February 2020. It nevertheless remains involved in the country’s political and security environment. Regarding the blockade, the UAE forms part of the quartet of Arab states – with Saudi Arabia, Bahrain and Egypt – that have been leading a boycott of Qatar. On 5 June 2017, the quartet severed diplomatic and economic relations with Qatar after claiming that Doha’s foreign policy interfered with other Arab states’ internal affairs and the UAE has since been involved in the boycott of Qatari interests. Consequently, the UAE’s relations with Qatar will remain severed over the coming year.

The UAE’s different emirates had historically varied relations with Iran. There is a dispute between the two countries over the ownership of three islands in the Gulf. Although the two countries maintain diplomatic relations, tensions between them are high. There has historically been a large volume of trade between Iran and Dubai, which is home to approximately 400,000 Iranians. Trade has facilitated warmer relations between Tehran and Dubai than the Islamic republic has with the other emirates. However, the re-imposition of US sanctions on Iran – and the UAE’s broader efforts to economically isolate Iran – indicates that such trade will continue to decrease over the coming year. This is linked to the UAE´s strong political and security relationships with the US. In fact, in recent years, the countries have cooperated on counterterrorism initiatives across the Middle East. The US has helped to train the Emirati security forces, and the US air force and navy frequently use facilities in the UAE for operations across the Middle East. The UAE is also a large purchaser of US defence products. Moreover, the UAE’s leadership has increasingly started to see Turkey as a key regional rival, largely due to the latter’s overt support for Islamist political movements across the Middle East and North Africa and ties with Qatar, which have grown increasingly influential since the start of the Gulf dispute in June 2017.

Over the past two years, UAE has enacted regulatory changes aimed at boosting investor confidence and improving legal structures around new industries. This has brought UAE regulations more in line with international standards regarding issues such as governance, bankruptcy and arbitration. Nevertheless, the mechanisms through which some regulations are to be implemented are often unclear. 

Central bank reserves and financial resources held at sovereign wealth funds underpin the federation’s ability to finance budget deficits, issue debt on reasonable terms and maintain a stable currency. The federal government, emirate-level governments and government-related enterprises will continue to be able to repay loans over the coming years.

However, the risk of delayed payment will temporarily increase as the country grapples with the fiscal consequences of decreasing government revenue from the oil and gas sector. The kingdom will also suffer from reduced revenue from the non-oil sector, such as the tourism and aviation industries, amid low oil prices and depressed global passenger travel resulting from the COVID-19 pandemic. 

UAE is considered an Authoritarian Regime in the 2020 Democracy Index, developed by The Economist Intelligence Unit (EIU), where the country ranks 146 out of 167 countries scored.

The country ranks 31 at the Human Development Index developed by the United Nations Development Programme.

The UAE offers a generally welcoming environment for foreign businesses. Physical infrastructure is good in most of the country by international standards. Communications networks are highly developed. The UAE has an advanced transportation infrastructure and local governments rely on large-scale infrastructure investments to stimulate growth.

Dubai international airport (DXB) is considered to be one of the most important in the world, with one of the highest numbers of yearly passengers (80 million in 2015). It serves 260 destinations on all continents, thanks to Emirates Airlines. Al Maktoum airport is the secondary airport in the city and mainly serves Cargo flights. Abu Dhabi international airport (AUH) is expanding with Etihad Airways, Emirates Airline's rival.  All flights to and from Qatar have been suspended since June 6, 2017, until further notice due to the diplomatic rift mentioned above. Additionally, luggage is strictly controlled at the airport. French diplomatic authorities recommend to their citizens that Emirati authorities have the power to accept or decline entrance to foreigners. Many French nationals have been declined entrance to the UAE (even in Dubai) by border police and have been sent back to their country of origin. No explanation is provided to travelers sent back to their country of origin. However, it is part of preemptive counterterrorism measures taken by local authorities.  

The road network is very good, however, driving could be dangerous. Car accidents are frequent due to bad habits of drivers and dangerous driving, especially by youth on Thursday and Friday evenings due to speeding and animals crossing the road. Authorities are very strict with regard to traffic laws. Automatic radar traps are widely used and fines can be expensive. The UAE has a "zero tolerance" policy on drinking and driving. If going off-road in the desert, it is advised against going alone. Inform someone of your itinerary, check your vehicle, be sure to have means of communication, mechanic tools, and enough fuel and water. In general, rental cars do not have insurance for going off-road. Taxis are available in major cities and are trustworthy. They all have a metric system. Uber is available throughout the country.

Emirates Express buses connect Dubai and Abu Dhabi, with departures every 40 minutes between Al-Ghubaibah (Dubai) and Hazza bin Zayed terminal (Abu Dhabi). The travel time is around 2 hours. The Al Ghazal bus company also connects Dubai to Sharjah.

Travel by sea is possible. However, the waters in the Gulf are politically sensitive. Some areas are forbidden to access. Coast Guard patrols are frequent. It is important to have your passport at all times. 

The legal system is robust. Regulatory changes have gradually brought the legal structure more in line with international standards, and further reforms have streamlined local courts and made them more accessible to expatriates. However, foreign companies will mostly prefer to resolve disputes via arbitration or courts in the free zones. Opaque bureaucracy and a lack of transparency can obstruct or delay operations; the political system allows for regulatory change with little warning.

Both skilled and unskilled labor is generally available in the UAE, particularly in Dubai and Abu Dhabi. The government is encouraging the employment of Emirati nationals, particularly in government jobs and state-affiliated entities. It also encourages female participation in the workforce. Larger private sector companies are required to employ a certain number of Emiratis, sometimes in specific roles or departments. Requirements for obtaining an employment visa vary by nationality; these requirements can be influenced by diplomatic relations and events across the wider Middle East.

Strikes are illegal, and expatriate workers’ right to remain in the country depends on the status of their visa, which is dictated by their employer. This generally discourages labor activism. However, construction workers occasionally stage strikes and protests, typically at their accommodation or worksites. 

The UAE is increasingly streamlining the required procedures for obtaining the necessary licences, permits and other documentation to set up businesses. Dubai and Abu Dhabi are working to move many of these processes online. However, navigating the bureaucracy still causes frequent delays for businesses. Some emirates’ decision to implement remote working schemes for government employees during the COVID-19 pandemic could result in bureaucratic delays. COVID-19 is likely to continue producing operational disruptions in the coming months. 

Although the country’s official language is Arabic, English is widely spoken, particularly in Dubai and Abu Dhabi, where there are large expatriate populations.

Overall, UAE ranks 16 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 21 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

There are few security risks in the UAE. The UAE offers a broadly secure environment for foreign companies and their employees. Crime rates are low, and social unrest is extremely rare. In fact, crime rates in the UAE are much lower than those in Western Europe or the US.  

Organized crime is more prevalent in the UAE than in other Gulf states. This stems from the country’s extensive trade links, as well as its location. Many goods are re-exported through the UAE, making it an attractive shipping option for criminal gangs trafficking contraband and people through the Gulf to the Middle East, Asia and Europe. Despite this, organized crime has little impact on legitimate businesses and their operations. 

No large-scale terrorist incidents have occurred in the UAE. However, instability across the Middle East more broadly and the country’s increasingly active foreign policy over the past few years have put some pressure on the domestic security environment. Security risks are largely mitigated by the authorities’ counterterrorism capabilities, which are among the strongest in the region. 

However, the country has some security vulnerabilities. These include porous borders and smuggling networks, through which weapons can be trafficked. The UAE is also home to potential targets, including foreign companies’ expatriates and tourists. A large-scale terrorist attack would likely target symbolic assets, such as oil and gas infrastructure, prestigious hotels, embassies, military installations or locations associated with Western expatriates. Security risks are largely mitigated by the authorities’ counterterrorism capabilities, which are among the strongest in the region. 

Interstate war is unlikely to affect the UAE. The country’s relations with Iran are tense, but neither country is ultimately interested in initiating a conflict, as that would have lasting economic and security repercussions. The government is internally cohesive. The royal families in the individual emirates have broadly positive relationships with each other and a common interest in ensuring the continuation of the political system. Civil unrest is rare, though instances of highly localized labor protests do occur occasionally. 

Strikes and protests at construction projects occur occasionally, though these are typically confined to small areas and are non-violent. Although workers have attempted to block roads on rare occasions, there is typically little disruption to business operations beyond the sites concerned.

Overall, UAE ranks 41 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

There are few security risks in the UAE. The UAE offers a broadly secure environment for foreign companies and their employees. Crime rates are low, and social unrest is extremely rare. In fact, crime rates in the UAE are much lower than those in Western Europe or the US.  

Organized crime is more prevalent in the UAE than in other Gulf states. This stems from the country’s extensive trade links, as well as its location. Many goods are re-exported through the UAE, making it an attractive shipping option for criminal gangs trafficking contraband and people through the Gulf to the Middle East, Asia and Europe. Despite this, organized crime has little impact on legitimate businesses and their operations. 

No large-scale terrorist incidents have occurred in the UAE. However, instability across the Middle East more broadly and the country’s increasingly active foreign policy over the past few years have put some pressure on the domestic security environment. Security risks are largely mitigated by the authorities’ counterterrorism capabilities, which are among the strongest in the region. 

However, the country has some security vulnerabilities. These include porous borders and smuggling networks, through which weapons can be trafficked. The UAE is also home to potential targets, including foreign companies’ expatriates and tourists. A large-scale terrorist attack would likely target symbolic assets, such as oil and gas infrastructure, prestigious hotels, embassies, military installations or locations associated with Western expatriates. Security risks are largely mitigated by the authorities’ counterterrorism capabilities, which are among the strongest in the region. 

Interstate war is unlikely to affect the UAE. The country’s relations with Iran are tense, but neither country is ultimately interested in initiating a conflict, as that would have lasting economic and security repercussions. The government is internally cohesive. The royal families in the individual emirates have broadly positive relationships with each other and a common interest in ensuring the continuation of the political system. Civil unrest is rare, though instances of highly localized labor protests do occur occasionally. 

Strikes and protests at construction projects occur occasionally, though these are typically confined to small areas and are non-violent. Although workers have attempted to block roads on rare occasions, there is typically little disruption to business operations beyond the sites concerned.

Overall, UAE ranks 41 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

No vaccinations are required to enter the country.

UAE ranks 56 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).

The UAE has an arid-subtropical climate and is characterized by high temperatures and low levels of rainfall. Summers are very hot and humid and winters are generally mild. From December to March temperatures range between 10°C and 30°C and can climb as high as 48°C with humidity rates of 100% in the summer.

Finally, it should be noted that dehydration is a significant risk during the summer due to extreme temperatures. Summer also often brings sand storms and floods, such as the floods that struck Abu Dhabi in April 2011. This severe weather is not rare. In 2014, several cities in central and northern UAE were hit by floods, mostly due to insufficient or failing drainage infrastructure.