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The race to attract investment from abroad is equally important for al the Emirates. However, the major problem facing theseEmirates is the strict federal requirement for the foreign firms of forming necessary joint venture with local partners wherein the local partner must at least have a share of 51% of the venture. To remove this obstacle to foreign direct investment and lower the negative image of this requirement, certain free zones have been set up. These free zones allow opportunity to the foreign investors to have 100% ownership of the entire venture or investment. By 2002, UAE had developed about 11 different free zones. Besides offering 100% ownership of the project, these zones also offered 100% tax-free and investment opportunities to the foreign investors. The result was that UAE became one of the most attractive investment point and, consequently, a fast developing country

your answer is rising unemployment and inflation.