Indeed. That said, what will they diversify to? I wonder if it will be solar energy generation due to natural abundance. Barring that, it will have to be something like high tech, which itself will be dependent on importing talented labour. That will only happen with low tax rates, with Dubai acting as a hub for transient talent looking to save for a few years, then head off.
Meanwhile, given the local Emirati will form a small fraction of the economy, they may effectively act as rent seekers on income and corporate tax from the rest of the economy.
Will this be an ideal egalitarian society? Probably not, at least in terms of my values. But those seem like the underlying dynamics, for better or worse.
Of course, if diversification isn't competitive relative to the rest of the world, things will go the other way.
Meanwhile, given the local Emirati will form a small fraction of the economy, they may effectively act as rent seekers on income and corporate tax from the rest of the economy.
Will this be an ideal egalitarian society? Probably not, at least in terms of my values. But those seem like the underlying dynamics, for better or worse.
Of course, if diversification isn't competitive relative to the rest of the world, things will go the other way.