Reforms or deforms? The rise and decline of the rentier middle class in the United Arab Emirates

This article examines the dual bargains of the United Arab Emirates’ (UAE) government that are vital to its political stability. Using interviews with middle-class Emiratis as well as publicly available primary and secondary sources, I shed light on how these Emiratis perceive the changes that these bargains have undergone. Oil wealth fueled the emergence of a new, educated middle class that came to occupy public sector jobs, buffeted by the Kafala system. Due to recent policy shifts, citizens now report anxieties owing to a decline in material government benefits, a push out of secure public sector employment into precarious private sector jobs and the termination of “Arbab entrepreneurship.” At the same time, the government is seen to cater more to noncitizens, resulting in a diminishing citizen or noncitizen differential, going so far as to elicit fear of a reversal of roles. As a result, the discourse on labor reforms and economic growth does not connote positive change for Emiratis.