UAE, like many nations in the GCC has serious issues with inequality, arbitrary applications of the law that don't seem to apply to locals, and the rot of hardline Islam that dictates social policy and serves as a justification for bigotry, injustice, and cruelty. There are problems galore, and one of those problems is what I suspect is behind this incident. Power, money, and influence is everything and society runs on who knows who. All it would take is for the accuser in this incident to have friends in the right places and what would normally never be taken seriously becomes a major incident.
That said, I have been to both Dubai and Abu Dhabi, since I currently live in the region, and millions of tourists like myself pass through without incident. I feel more at risk of false arrest and imprisonment when visiting the US than I do when visiting the UAE. But that doesn't make this incident any better or forgivable. It's gross and a perfect example of why this region has so many damn issues.
While nationalism does present its problem there, The accuser in this story wasnt Emirati.
The hierarchy in this region puts Arabs above non Arabs, especially wealthy ones. Only people lower on the totem pole than westerners would be Indians, Bangladeshi, Pakistanis, Sri Lankans, and Africans (especially Somali).