>Doesn't this end up being a trap though?
Yes, but did that stop the entire western private industries from collectively moving their manufacturing to China leaving the west exposed to the CCP? When do CEOs ever think long term about second order effects or national security interests? It's all about the shareholder returns and next quarter baby.
And if your competitors are moving to UAE and have cheaper compute than you, that automatically puts you at a disadvantage so you'll have no choice but to move to the UAE yourself or go bust. It's the China playbook all over again.